NOTE
2 – GOING CONCERN
The
accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. The following
are the principal conditions or events which potentially raise substantial doubt about the company’s ability to continue as a going
concern:
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Balancing
the need for operational cash with the need to add additional products. |
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Timely
and cost-effective development of products |
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Working
capital deficit of $15.2 million as of June 30, 2026 |
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Accumulated
deficit of $126.4 million as of June 30, 2026 |
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Multiple
years of losses from operations |
Management
Evaluation
Management
considers the conditions outlined above as the most significant factors in raising substantial doubt about the Company’s ability
to continue as a going concern within one year after the date the financial statements are issued.
Management’s
Plans to Mitigate and Alleviate Conditions or Events
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Management
is evaluating operating expenses and is developing a plan to reduce expenditures without negatively impacting current operations. |
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Management
has placed a strategic focus on increasing sales with prime customers. |
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Sales
efforts are focused on the most profitable product lines. |
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The
Company has implemented an aggressive debt settlement plan with its vendors and debt holders
to clean up the Balance Sheet presentation and during 2025, the Company was able to settle
many debts for a discount.
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Short
term liabilities for the Company decreased from $86.3 million to roughly $27.7 million, showing the efforts of management are working. |
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In
December 2025 management finalized an equity raise which resulted in approximately $941,000 net cash received from investors. |
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