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NOTE 6 - LIQUIDITY
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6 Months Ended |
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Dec. 31, 2014
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| Going Concern Disclosure [Abstract] | |
| Going Concern Disclosure [Text Block] |
NOTE 6 – LIQUIDITY
At December 31, 2014, our total cash was $372,963, none of which was restricted and our total indebtedness was $655,001, compared to total cash of $173,388 and total indebtedness of $1,715,797 at December 31, 2013. Our total indebtedness at December 31, 2014 includes $586,608 of accounts payable and accrued expenses and $68,393 of long-term debt (of which $14,553 is current).
In the second quarter fiscal 2015, our revenue fell short of expectations primarily due to a large long term customer not placing their customary order in the second quarter. The lack of this customary order was a significant factor in the Company not achieving the expected milestone of achieving positive cash flows from operations. As a result, operations for the first two quarters of fiscal 2015 consumed $355,622 of the Company’s limited cash resources.
To help address our limited cash resources, we are in discussions with various opportunities to license our technology to third parties which we believe will bring in additional cash flows without diluting our common stock or requiring the addition of debt. Additionally, we are in discussions with banks and other lenders regarding establishing a line of credit for short term cash needs, however at this time we have not succeeded in establishing such a line of credit.
At the Annual Stockholder’s Meeting held on December 4, 2014, management presented a plan focusing on “Profitability as a Mindset”. To that end, management continues to sharpen our sales model continue to add sales resources. We have purchased a customer list and placed advertisements in trade magazines to our target customer base and will further utilize the customer list through a more robust customer relationship management process through our the remainder of fiscal year 2015.
In connection with the preparation of our financial statements for the three and six months ended December 31, 2014, we have analyzed our cash needs for the next twelve months. We have concluded that our available cash and accounts receivables are sufficient to meet our current minimum working capital, capital expenditure and other cash requirements for this period.
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