Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 35

The Company's consolidated financial statements have been prepared using accounting principles generally accepted in the United States. applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a working capital deficit, recurring losses, and negative cash flows from operations. These matters raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

At February 28, 20X1, the Company had an accumulated deficit of $4,891,093. Subsequent to February 28, 20X1 the Company has not received any cash proceeds from its stock subscriptions receivable, but the Company entered into stock purchase agreements and issued 1,283,500 restricted common shares at $0.26 per share, for total cash proceeds of $320,875. The Company anticipates that expected future proceeds from its stock subscriptions receivable, additional financing through the sale of its common stock or other equity‐based securities, and additional sales of existing domain names will be sufficient to meet its working capital and capital expenditure needs through at least February 28, 20X2. In the event that the Company is unable to obtain additional capital in the future, it would be forced to further reduce operating expenses and/or cease operations altogether.