NOTE 2 – GOING CONCERN
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $1,653,847 for the year ended June 30, 2013 and has an accumulated deficit of $2,277,385 at June 30, 2013. The Company also used cash in operating activities of $533,778 during the year ended June 30, 2013. At June 30, 2013, the Company has negative working capital of $553,051. The Company is in default on notes payable. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
In order for us to continue as a going concern, we expect to obtain additional debt or equity financing. We are regularly and continually seeking additional funding from investors and from time to time we are in various stages of negotiations. Nonetheless, to date we have not accomplished a financing of the size needed to put the Company on a stable operating basis. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to attain positive cash flow operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet our future obligations. All of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to significantly reduce or cease operations.