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Going Concern
12 Months Ended
Dec. 31, 2014
Going Concern [Abstract]  
Going Concern

3. Going Concern


Since its inception, with the exception of the years ended December 31, 2007 and December 31, 2013 and December 13, 2014, during which it generated net income of $386,000 and $10,300 and $7,700, respectively, the Company has incurred significant losses and, as of December 31, 2014, had accumulated losses of $13,432,700. For the year ended December 31, 2014, the Company had net income from operations of $29,000. For the years ended December 31, 2013 and December 31, 2012, the Company’s had a net loss from operations of $12,900 and $143,800, respectively. The Company had negative working capital of $424,500 at December 31, 2014, $350,600 at December 31, 2013 and $467,200 at December 31, 2012. Due in part to uncertainties in the US economy, the Company, which is substantially dependent on its licensees to generate licensing revenues, may incur further operating losses and experience negative cash flow in the future. Achieving profitability and positive cash flow depends on the Company’s ability to generate and sustain significant increases in revenues and gross profits from its traditional business. There can be no assurances that the Company will be able to generate sufficient revenues and gross profits to sustain profitability and return to positive cash flow in the future.


During 2014, the Company sold a $5,000 convertible debenture to an investor. During 2013, the Company sold convertible debentures totaling $105,000 to six individuals and a trust and received an unsecured loan of $3,000 from an individual. During 2012, the Company received unsecured loans totaling $49,500 from two individuals and repaid $2,500 of these loans during 2012. In 2012, the Company raised $10,000 in a private placement exempt from registration under section 4(2) of the Securities Act of 1933, as amended, whereby 208,334 shares of the Company’s common stock were sold to two non-affiliated individual investors. Receipt of funds from these investors and from the demand loan holders have allowed the Company to remain in operation through the current date. Management of the Company believes that it may need additional capital in the future both to fund investments needed to increase its operating revenues to levels that will sustain its operations and to fund operating deficits that it anticipates will continue until revenue increases from traditional and new product lines can be realized. There can be no assurances that the Company will be successful in obtaining sufficient additional capital, or if it does, that the additional capital will enable the Company to impact its revenues so as to have a material positive effect on the Company’s operations and cash flow. The Company believes that without additional capital, whether in the form of debt, equity or both, it may be forced to cease operations at an undetermined future date.


The Company’s independent registered public accountants have included a “going concern” explanatory paragraph in their audit report accompanying the 2014 financial statements. The paragraph states that the Company’s continuing working capital deficit raises substantial doubt about the Company’s ability to continue as a going concern and cautions that the financial statements do not include any adjustments that might result from the outcome of this uncertainty.