NOTE K - GOING CONCERN
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America and applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.
As of December 31, 2011, the Company has incurred net operating losses of $(1,679,139) for the year then ended. The Company has a working capital (deficit) of $(433,334) as of December 31, 2011.
During the next 12 months, the Company's foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing, making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with reviewing or investigating any potential business ventures. The Company may experience a cash shortfall and be required to raise additional capital. Historically, it has relied upon internally generated funds and funds from the sale of shares of stock and loans from its shareholders and private investors to finance its operations and growth. Management may raise additional capital through future public or private offerings of the Company's stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company's failure to do so could have a material and adverse effect upon it and its shareholders. Management's ongoing priority focus is the enhancement of existing software products and the development of new ones to continuously enhance the company's position in the marketplace.
The Company has a series of plans to mitigate the going concern:
Management expected to seek potential investors and other business opportunities from all known sources. Management's efforts are ongoing to complete the development of new software products in order to bring these products currently in development to the marketplace.
Furthermore, management's efforts are ongoing to enhance the Company's Internet visibility towards potential customers through search engine optimization (SEO).
The Company is not presently involved in any legal proceedings and was not involved in any such legal proceedings during the year ended December 31, 2011.
Under the indemnification provisions of the Company's customer agreements, the Company agrees to indemnify and defend its customers against infringement of any patent, trademark, or copyright of any country or the misappropriation of any trade secret, arising from the customers' legal use of the Company's services. Exposure to the Company under these indemnification provisions is generally limited to the total amount paid by the customers under pertinent agreements. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company or its customers pertaining to such indemnification provisions and no amounts have been recorded.