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Going Concern and Management's Liquidity Plans
6 Months Ended
Jun. 30, 2018
Going Concern and Management's Liquidity Plans [Abstract]  
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS

NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

 

As of June 30, 2018, the Company had cash of $15,948 and working capital deficit (current liabilities in excess of current assets) of $2,814,788. During the six months ended June 30, 2018, the Company used net cash in operating activities of $4,441,379. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements.

 

During the six months of 2018, the Company received $323,000, $3,304,000, $106,000 and $397,500 approximately from the exercise of common stock warrants, sale of common stock, issuances of debt notes, and proceeds from simple agreements for future tokens, respectively. The Company does not have cash sufficient to fund operations for the next fiscal year.

 

The Company’s primary source of operating funds since inception has been cash proceeds from private placements of common stock, proceeds from the exercise of warrants and options and issuance of notes payable. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company will require additional financing to fund future operations.

 

Management’s plans with regard to these matters encompass the following actions: 1) obtain funding from new and potentially current investors to alleviate the Company’s working capital deficiency, and 2) implement a plan to generate sales. The Company’s continued existence is dependent upon its ability to translate its user base into sales. However, the outcome of management’s plans cannot be ascertained with any degree of certainty.

 

Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.