XML 57 R8.htm IDEA: XBRL DOCUMENT v3.23.3
Management Plans Capital Resources
6 Months Ended
Jun. 30, 2023
Management Plans Capital Resources  
Management Plans - Capital Resources

Note 2. Management Plans - Capital Resources

 

The Company reported net losses of $284,987 and $1,701,434 for the six months ended June 30, 2023 and 2022, respectively, and stockholders’ deficiencies of $6,988,507 and $6,864,214 at June 30, 2023 and December 31, 2022, respectively. The Company has a working capital deficit of approximately $6.6 million at June 30, 2023.

 

The Company’s mission is to drive shareholder value by developing and bringing to market automated, cost effective, and innovative cybersecurity technologies. The Company’s strategy is to build its business by designing, developing, and marketing IT security-based products and solutions that fill technology gaps in cybersecurity.

 

The Company's goal is to increase sales and generate cash flow from operations on a consistent basis. The Company’s business plans require improving the results of its operations in future periods. The Company has renegotiated the terms of some certain obligations, using operational cash flow to pay down balances and extending terms, and provided financing with the issuance of new loans.

 

 The Company plans to issue stock, restructure certain debt and anticipates significant growth of business. 

 

The Company believes the capital resources generated by the improving results of its operations as well as cash available under its factoring line of credit and from additional related parties and third-party loans, if needed, provide sources to fund its ongoing operations and to support the internal growth of the Company. The Company may need to extend existing debt agreements in order to provide resources for other purposes. If the Company experiences significant growth in its sales, the Company believes that this may require it to increase its financing line, finance additional accounts receivable, or obtain additional working capital from other sources to support its sales growth.

 

The Company plans to continue to evaluate alternatives which may include continuing to renegotiate the terms of other notes, seeking conversion of the notes to shares of common stock and seeking funds to repay the notes. The Company continues to evaluate repayment of our remaining notes payable based on its cash flow.

 

As a result, for the foreseeable future, there is substantial doubt about the Company’s ability to continue as a going concern.