19. 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 net losses of $3,875,768 for the year ended September 30, 2012 and $3,262,566 in 2011. In addition, the Company has incurred substantial losses since its inception.
As of September 30, 2012, the Company had a working capital deficit of $11,132,125 as compared to its working capital deficit as of September 30, 2011 of $10,107,484. These factors raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to attain a satisfactory level of profitability and obtain suitable and adequate financing. Management anticipates that additional financing through long-term borrowing and equity placements will be necessary in the future. There can be no assurance that management's plan will be successful.