Note 3 - Going Concern |
3 Months Ended |
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Sep. 30, 2017 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] |
NOTE
3 - GOING CONCERN These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of business. The Company’s operations have resulted in a net loss of $1,016,397 for the thee months ended September 30, 2017 (
2016 - $730,775 ), and an accumulated deficit of $64,376,586 ( June 30, 2017 -
$63,360,189 ) and a working capital deficiency of $4,118,746 as at September 30, 2017 (
June 30, 2017 -
$3,600,986 ). The Company does not have sufficient revenue-producing activities to fund its expenditure requirements to continue to advance researching, developing and commercializing its conductive plastics technology, ElectriPlast. Subsequent to the period end, the Company raised $1,000,000 pursuant to a license agreement and $200,000 pursuant to a convertible debt agreement (note 13 ). The Company estimates that, without further funding, it will deplete its cash resources within twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern.These consolidated financial statements do
not reflect adjustments that would be necessary if the going concern assumption were not appropriate because management believes that the actions already taken or planned will mitigate the adverse conditions and events that raise doubts about the validity of the going concern assumption used in preparing these consolidated financial statements. Management intends to raise additional capital through stock and debt issuances to finance operations. If none of these events occur, there is a risk that the business will fail. |