As reflected in the accompanying financial statements, the Company has not yet emerged from the development stage, has a net loss of $794,300 and net cash used in operations of $100,917 for the year ended July 31, 2012; and negative working capital of $546,851 and an accumulated deficit of $7,125,318 at July 31, 2012.
These factors, among others, raise doubt about the Companys ability to continue as a going concern. The accompanying financial statements do not include any adjustments related to recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.
In response to these problems, management has taken the following actions:
· the Company is seeking third party debt and/or equity financing;
· the Company is cutting operating costs, and
· as described in Notes 6 and 7, the Company has been involved in numerous acquisitions with the intent of beginning operations and achieving a level of profitability