XML 20 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Going Concern and Management's Liquidity Plans
9 Months Ended
Sep. 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 September 30, 2018, the Company had cash of $11,221 and working capital deficit (current liabilities in excess of current assets) of $5,490,050. During the nine months ended September 30, 2018, the Company used net cash in operating activities of $5,718,352. 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 nine months ended September 30, 2018, the Company received approximately $323,000, $3,304,000, $1,492,500 and $503,500 from the exercise of common stock warrants, sale of common stock, proceeds from issuance of convertible notes, and proceeds from advances including 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 the public and private placements of the Company’s securities, including debt securities, and proceeds from the exercise of warrants and options. 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 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 unaudited 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 unaudited condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.