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2. GOING CONCERN
12 Months Ended
Dec. 31, 2016
Capitalization of accrued interest to convertible notes payable  
GOING CONCERN

As reflected in the accompanying consolidated financial statements for the years ended December 31, 2016 and 2015, the Company had net losses of $2,633,516 (which includes $911,087 of stock based compensation expense) and $1,839,533 (which includes $121,915 of stock based compensation expense), respectively, and net cash used in operating activities of $1,798,726 and $2,469,343, respectively. Additionally, at December 31, 2016, the Company had a working capital deficit of $1,877,415, stockholders’ deficit of $1,385,104, and accumulated deficit of $35,235,449. It is managements opinion that these factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

Envision is pursuing a capital raise to provide funds during the upcoming months and will look to raise additional funds for further operating capital and working capital. Further, the Company will seek additional sales that would provide additional revenues and possible gross profits. All such actions and funds, if successful, may or may not be sufficient to cover monthly operating expenses or meet minimum payments with respect to the Company’s liabilities over the next twelve months or providing additional working capital. From January 1, 2016 through December 31, 2016, the Company raised $1,820,000 from a securities offering and drew down $200,000 on a $1,000,000 line of credit that was established in 2015.

 

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.