NOTE 11 GOING CONCERN
The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern. As of December 31, 2011 the Company had an
accumulated deficit of $4,436,129 and a working capital deficit of $287,100. The Company used $99,927 and $293,349 in cash in operations
for the years ended December 31, 2011 and 2010 respectively. These conditions raise substantial doubt about the Company's ability
to continue as a going concern. The consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
We presently maintain our daily operations
and capital needs through the receipts of the monthly account residuals we receive directly from the Companys processors.
From time to time when we need additional working capital we have been able to issue convertible promissory notes to an unaffiliated
investor. Additionally, the Companys CEO. B. Michael Friedman has loaned the Company money in the past. The company expects
to increase sales of additional merchant accounts over the course of this fiscal year and has received term sheets for additional
credit facilities for working capital if needed.