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3. Going Concern
12 Months Ended
Dec. 31, 2016
Notes  
3. Going Concern

3. Going Concern

 

At December 31, 2016, the Company’s current debt exceeded current assets by $1,787,197. In addition, the Company has accumulated deficit of $12,289,473 and ongoing net loss from operations. These factors indicate that there may be doubt regarding our ability to continue as a going concern for the next twelve months.

 

During the first quarter of 2017, the Company completed $1,141,000 of equity sales which included an exchange of $100,000 in the Company’s commons stock for debt owed by the Company to a related party. In addition, related party debt holders are willing to restructure payments that will allow the Company to defer $724,247 in current debt to long term debt if necessary. In addition, first quarter of 2017 production has resulted in positive cash flow and production planned for the remainder of the year indicate the trend to continue. As a result of its planned production, equity sales and ability to restructure debt, management believes there is not a substantial doubt about the Company’s ability to continue as a going concern for the next twelve months. Cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the time period.