Note 2 – Going Concern

As reflected in the accompanying financial statements, for the nine months ended March 31, 2017, the Company had approximately $3.5 million in cash, with a net loss of $15.8 million. The net cash used in operations of $10.6 million, and stockholders’ equity of $8.5 million with an accumulated deficit of $62.3 million. In addition, the Company is in the early stage of commercialization and has not yet generated profits. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company expects that its current cash resources as well as expected lack of operating cash flows will not be sufficient to sustain operations for a period greater than one year from the date of this report. The ability of the Company to continue its operations is dependent on management’s plans, which include continuing to raise equity-based financing. There is no assurance that the Company will be successful in accomplishing this objective.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.