American Paramount Gold Corp.
Statements of Operations
(Expressed in U.S. Dollars)
(Unaudited)
For the Three Months Ended For the Nine Months Ended
May 31, May 31,
2013 2012 2013 2012
---------- ---------- ---------- ----------
EXPENSES
Operating expenses
Consulting $ -- $ 1,001 $ -- $ 34,953
Exploration -- -- -- 432,280
General and administrative 1,499 12,700 4,088 34,625
Professional fees -- -- -- 3,739
---------- ---------- ---------- ----------
Total operating expenses 1,499 13,701 4,088 505,597
---------- ---------- ---------- ----------
Net loss from operations (1,499) (13,701) (4,088) (505,597)
---------- ---------- ---------- ----------
Other expenses
Impairment of mining claims -- -- -- 250,000
Impairment of capital assets -- -- -- 15,693
Interest expense 24,712 24,560 73,103 68,632
---------- ---------- ---------- ----------
Total other expenses 24,712 24,560 73,103 334,325
---------- ---------- ---------- ----------
NET AND COMPREHENSIVE LOSS $ (26,211) $ (38,261) $ (77,191) $ (839,922)
========== ========== ========== ==========
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.02) $ (0.02) $ (0.05) $ (0.52)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 1,612,500 1,612,500 1,612,500 1,612,500
========== ========== ========== ==========
|
The accompanying notes are an integral part of
these financial statements.
4
American Paramount Gold Corp.
Statements of Cash Flows
(Expressed in U.S. Dollars)
(Unaudited)
For the Nine Months Ended
May 31,
2013 2012
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (77,191) $ (839,922)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Impairment of mining claims -- 250,000
Impairment of capital assets -- 15,693
Interest expense 73,103 68,632
Change in operating assets and liabilities:
Decrease in excise tax receivable 977 15,479
Decrease in prepaids -- 39,629
Increase in accounts payable and accrued liabilities 3,881 205,008
---------- ----------
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES 770 (245,431)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft repayments (5,529) (21,882)
Convertible loan proceeds - related party 4,761 198,775
---------- ----------
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (768) 173,893
---------- ----------
NET CHANGE IN CASH 2 (71,538)
CASH, BEGINNING OF THE PERIOD -- 71,552
---------- ----------
CASH, END OF THE PERIOD $ 2 $ 14
========== ==========
|
The accompanying notes are an integral part of
these financial statements.
5
American Paramount Gold Corp.
Notes to the Financial Statements
May 31, 2013
(Stated in U.S. Dollars)
1. ORGANIZATION AND NATURE OF BUSINESS
American Paramount Gold Corp., a Nevada corporation, (the "Company") was
incorporated in the State of Nevada on July 20, 2006. The Company was formed to
engage in the acquisition, exploration and development of natural resource
properties.
UNAUDITED INTERIM FINANCIAL STATEMENTS
The unaudited interim financial statements of the Company have been prepared in
accordance with United States generally accepted accounting principles ("GAAP")
for interim financial information and the rules and regulations of the
Securities and Exchange Commission ("SEC"). They do not include all information
and footnotes required by GAAP for complete financial statements. Except as
disclosed herein, there have been no material changes in the information
disclosed in the notes to the financial statements for the year ended August 31,
2012, included in the Company's Annual Report on Form 10-K, filed with the SEC.
The interim unaudited financial statements should be read in conjunction with
those audited financial statements included in Form 10-K. In the opinion of
management, all adjustments considered necessary for fair presentation,
consisting solely of normal recurring adjustments, have been made. Operating
results for the nine month period ended May 31, 2013 are not necessarily
indicative of the results that may be expected for the year ending August 31,
2013.
GOING CONCERN
The accompanying unaudited interim financial statements have been prepared
assuming the Company will continue as a going concern. Continuation as a going
concern is dependent upon the ability of the Company to obtain the necessary
obligations and pay its liabilities arising from normal business operations when
they come due and ultimately upon its ability to achieve profitable operations.
The outcome of these matters cannot be predicted with any certainty at this time
and raise substantial doubt that the Company will be able to continue as a going
concern. These unaudited interim financial statements do not include any
adjustments to the amounts and classification of assets and liabilities that may
be necessary should the Company be unable to continue as a going concern.
RECENT ACCOUNTING PRONOUNCEMENTS
The following are recent FASB accounting pronouncements, which may have an
impact on the Company's future financial statements:
"InCOME TAXES (ASC TOPIC 740): PRESENTATION OF AN UNRECOGNIZED TAX BENEFIT WHEN
A NET OPERATING LOSS CARRY-FORWARD, A SIMILAR TAX LOSS, OR A TAX CREDIT
CARRY-FORWARD EXISTS" ("ASU 2013-11") was issued during July 2013. FASB issued
guidance on how to present an unrecognized tax benefit. The guidance is
effective for annual periods beginning after December 15, 2013 for public
companies. The Company has adopted this pronouncement. The adoption of ASC Topic
740 did not have a significant impact on the Company's results of operations,
financial performance or cash flows.
In June 2014, the FASB issued ASU No. 2014-10, "DEVELOPMENT STAGE ENTITIES
(TOPIC 915): ELIMINATION OF CERTAIN FINANCIAL REPORTING REQUIREMENTS, INCLUDING
AN AMENDMENT TO VARIABLE INTEREST ENTITIES GUIDANCE IN TOPIC 810,
CONSOLIDATION." This ASU is intended to improve financial reporting by reducing
the cost and complexity associated with the incremental reporting requirements
for development stage entities. In addition, the amendments eliminate the
requirements for development stage entities to (1) present inception-to-date
information in the statements of income, cash flows, and shareholder equity, (2)
label the financial statements as those of a development stage entity, (3)
disclose a description of the development stage activities in which the entity
is engaged, and (4) disclose in the first year in which the entity is no longer
6
American Paramount Gold Corp.
Notes to the Financial Statements
May 31, 2013
(Stated in U.S. Dollars)
1. ORGANIZATION AND NATURE OF BUSINESS (CONTINUED)
a development stage entity that in prior years it had been in the development
stage. As of the first annual period beginning after December 15, 2014, the
presentation and disclosure requirements in Topic 915 will no longer be
required. The revised consolidation standards are effective one year later, in
annual periods beginning after December 15, 2015. The Company has early adopted
these changes and removed inception-to-date information and no longer describes
as an exploration stage entity.
In August 2014, the FASB issued ASU No. 2014-15, "PRESENTATION OF FINANCIAL
STATEMENTS--GOING CONCERN (SUBTOPIC 205-40): DISCLOSURE OF UNCERTAINTIES ABOUT
AN ENTITY'S ABILITY TO CONTINUE AS A GOING CONCERN." This ASU is intended to
define management's responsibility to evaluate whether there is substantial
doubt about an entity's ability to continue as a going concern and to provide
related footnote disclosures. Specifically, ASU 2014-15 provides a definition of
the term substantial doubt and requires an assessment for a period of one year
after the date that the financial statements are issued (or available to be
issued). It also requires certain disclosures when substantial doubt is
alleviated as a result of consideration of management's plans and requires an
express statement and other disclosures when substantial doubt is not
alleviated. The new standard will be effective for annual reporting periods,
including interim periods within those annual periods, beginning after December
15, 2016, with early adoption permitted. The Company is currently evaluating the
impact of this standard on its financial statements.
2. CONVERTIBLE LOAN - RELATED PARTY
On April 22, 2010, and as amended December 17, 2010, the Company entered into an
agreement with Monaco Capital Inc., majority shareholder, for a principal amount
of up to $5,000,000. The loan is unsecured and bears interest at the rate of 10%
per annum. The Company may at any time during the term of the loan prepay any
sum up to the full amount of the loan and accrued interest then outstanding at
any time for the sum plus an additional 10% of such amount. The loan (including
accrued interest) is convertible into securities of the Company at a conversion
price calculated as the mean volume weighted average price for the Company's
common stock during the ten (10) trading day period ending on the latest
complete trading day prior to the conversion date. At any time after the
advancement date, if the Company has not paid the loan and accrued interest in
full, the Lender may, by providing written notice to the Company, exercise its
rights of conversion in respect of either a portion of the total outstanding
amount of the loan as of that date into shares of the Company. The amounts
advanced plus accrued interest are due on year following the date advanced. At
May 31, 2013, $975,652 plus related interest is past due.
As at May 31, 2013, interest of $213,194 (August 31, 2012 - $140,092) is
included in accrued liabilities.
3. COMMON STOCK
On October 13, 2015, the Company amended its Articles of Incorporation to
increase its authorized and issued and outstanding common shares to 200,000,000
common shares at a par value of $0.001 and 10,000,000 preferred shares at a par
value of $0.001.
4. STOCK OPTIONS
The Company has adopted a stock option plan (the "2010 Plan") which permits the
Company to issue up to 6,500,000 shares of common stock to directors, officers,
employees and consultants of the Company upon the exercise of stock options
granted under the 2010 Plan. At the time of the grant of the option, the plan
administrator shall designate the expiration date of the option, which date
shall not be later than five (5) years from the date of grant. The vesting
schedule for each option shall be specified by the plan administrator at the
time of grant of the option. Effective September 29, 2010 the 2010 Plan provides
7
American Paramount Gold Corp.
Notes to the Financial Statements
May 31, 2013
(Stated in U.S. Dollars)
4. STOCK OPTIONS (CONTINUED)
for an exercise price to be established based on the fair market value of a
common share of the Company being the average of the high and low sales prices
(or bid and ask prices, if sales prices are not reported) for the common stock
for the last trading day immediately preceding the date with respect to which
fair market value is being determined, as reported for the principal trading
market for the common stock.
A summary of the Company's stock options outstanding as at May 31, 2013 and
August 31, 2012 is presented below:
Number of
Options Outstanding Weighted Average Weighted Average Life
and Exercisable Exercise Price Remaining (years)
--------------- -------------- -----------------
Balance, August 31, 2011 and 2012 5,150,000 $ 0.12 2.68
Expired (150,000) $ 0.12
Balance, May 31, 2013 5,000,000 $ 0.12
|
The following is a summary of the Company's stock options outstanding and
exercisable as at November 30, 2012:
Number of options outstanding
and exercisable Exercise Price Expiry Date
--------------- -------------- -----------
5,000,000 $ 0.12 March 2, 2016
5,000,000
|
5. RELATED PARTY TRANSACTIONS
During the nine months ended May 31, 2013, consulting fees of $Nil (2012 -
$14,725) and $Nil (2012:$9,500) were incurred to the President and a director of
the Company, respectively.
At May 31, 2013, Monaco Capital Inc., a majority shareholder has advanced
$980,413 (August 31, 2012 - $975,652) with terms as discussed in Note 2.
6. SUBSEQUENT EVENTS
On October 1, 2015, Dennis Petke was appointed as the sole officer of the
Company, and as a director of the Company.
The Company entered into an agreement with a company owned by Dennis Petke
beginning on October 1, 2015 whereby the Company will pay a monthly service fee
of $2,500 and issue on a monthly basis 50,000 shares of the Company's common
stock for the services of Mr. Petke. This agreement can be terminated by the
Company with 180 days notice, and by the company owned by Mr. Petke with 30 days
notice.
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks in the section
entitled "Risk Factors" that may cause our or our industry's actual results,
levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.
Our unaudited interim financial statements are stated in United States dollars
and are prepared in accordance with United States generally accepted accounting
principles. The following discussion should be read in conjunction with our
company's audited financial statements and 10-K for the year ended August 31,
2012 and unaudited interim financial statements and the related notes that
appear elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all references to "common
stock" refer to common shares in the capital of our company and the terms "we",
"us" and "our" mean American Paramount Gold Corp.
GENERAL OVERVIEW
We were incorporated under the laws of the State of Nevada on July 20, 2006
under the name Zebra Resources, Inc. At inception, we were an exploration stage
company engaged in the acquisition, exploration and development of mineral
properties.
On February 26, 2010, Monaco Capital Inc. acquired a controlling interest in our
company by purchasing 20,000,000 shares of our common stock in a private
transaction.
On March 17, 2010, we effected a 1 old for 2 new forward stock split of our
issued and outstanding common stock. As a result, our authorized capital
increased from 75,000,000 to 150,000,000 shares of common stock and our issued
and outstanding increased from 32,000,000 shares of common stock to 64,000,000
shares of common stock, all with a par value of $0.001.
Also effective March 17, 2010, we changed our name from Zebra Resources, Inc. to
American Paramount Gold Corp., by way of a merger with our wholly owned
subsidiary American Paramount Gold Corp., which was formed solely for the change
of name.
The name change and forward stock split became effective with the
Over-the-Counter Bulletin Board at the opening for trading on April 12, 2010
under the stock symbol APGA. Our CUSIP number is 02882T 05.
On April 16, 2010, we entered into an agreement with Royce L. Hackworth and
Belva L. Tomany in respect of an option to acquire 189 unpatented mining claims
situated in the Walker Lane Structural Belt in Nye County, Nevada known as the
Cap Gold Project. The 189 claims making up the Cap Gold Project form a
contiguous block of approximately 3,960 acres (1,602 hectares). We paid $125,000
to secure the option, giving us the right acquire a 100% long-term lease
interest in the Cap Gold Project. To exercise the option we must: (i) make
ongoing yearly advance production royalty cash payments during the term of the
9
agreement of $125,000 in years two (2) through five (5), $150,000 in years six
(6) through twelve (12), $200,000 in years 13 through 20 and $300,000 in years
21 through 30; (ii) incur expenditures on exploration of the Cap Gold Project of
not less than an aggregate of $1,250,000 over five (5) years; and (iii) make
production royalty payments from production from the property after the advance
production royalty cash payments described above have been repaid to our company
from production from the property. At our company's election, the production
royalty may be calculated either on a sliding scale or on a fixed production
royalty basis, and must range from 1% to a maximum of 3%.
On April 22, 2010, we entered into a convertible loan agreement with Monaco
Capital Inc., wherein Monaco Capital Inc. has agreed to loan our company up to
$500,000. The loan (and accrued interest) is convertible in whole or in part
into common shares of our company at a conversion price of $1.05 and will bear
interest at 10% per annum. The principal amount of the loan and accrued interest
is due and payable one year from the advancement date. We may at any time during
the term of the loan prepay any sum up to the full amount of the loan and
accrued interest then outstanding for an additional 10% of such amount. At May
31, 2013, Monaco Capital Inc. has advanced $975,652. Accrued interest relating
to the loan totalling $164,416 as at May 31, 2013 was recorded in accounts
payable and accrued liabilities.
On July 30, 2010, our directors approved the adoption of the 2010 stock option
plan which permits our company to issue up to 6,500,000 shares of our common
stock to directors, officers, employees and consultants of our company upon the
exercise of stock options granted under the 2012 plan.
On July 28, 2010 we obtained an extra-provincial license to carry on business in
the Province of Ontario, Canada. Our Ontario corporation number is 1827852.
On November 9, 2010, we entered into a non-binding letter of intent to acquire
the Kisita Gold Mine Property, an operational gold property four hours northwest
of the capital city of Kampala, Uganda. The acquisition was subject to further
negotiation and due diligence of the project satisfactory to us. On December 9,
2012 our company, having performed the due diligence required to acquire the
Kisita Gold Mine Property, advised Lonsdale Acquisition Corporation that we
declined to proceed with the purchase agreement under its current terms and
conditions. Discussions with Lonsdale Acquisition Corporation are ongoing.
On November 28, 2011, the Nevada Secretary of State accepted for filing a
Certificate of Change, wherein the corporation amended our Articles of
Incorporation to implement a forty (40) for one (1) reverse stock split of our
authorized and issued and outstanding common shares such that our company's
authorized capital will be decreased from 150,000,000 shares of common stock
with a par value of $0.001 to 3,750,000 shares of common stock with a par value
of $0.001 and, correspondingly, its issued and outstanding shares of common
stock shall decrease from 64,500,000 shares of common stock to 1,612,500 shares
of common stock. No fractional shares shall be issued and fractional shares
shall be rounded up. The reverse split was effective at the opening of trading
on January 26, 2012.
On March 9, 2012 based on recently released drill results the Board of Directors
decided the company could not justify the further expense of continuing with its
planned drill program at Cap Gold, Nye County, Nevada, USA. The Company advised
the owners that it was cancelling its option agreement.
OUR CURRENT BUSINESS
We are an exploration stage mining company engaged in the identification,
acquisition, and exploration of metals and minerals with a focus on gold
mineralization.
Both mineral exploration and development involve a high degree of risk and few
properties which are explored are ultimately developed into producing mines.
10
CASH REQUIREMENTS
We intend to search for qualifying exploration properties over the next twelve
months. We estimate our operating expenses and working capital requirements for
the next twelve month period to be as follows:
ESTIMATED EXPENSES FOR THE NEXT TWELVE MONTH PERIOD
General, administrative, and corporate expenses $ 50,000
Operating expenses $ 50,000
Identification of properties of merit $ 50,000
--------
TOTAL $150,000
========
|
At present, our cash requirements for the next 12 months outweigh the funds
available. Of the $150,000 that we require for the next 12 months, we had $Nil
in cash as of May 31, 2013. In order to improve our liquidity, we intend to
pursue additional equity financing from private investors or possibly a
registered public offering. Other than as set out below, we currently do not
have any arrangements in place for the completion of any further private
placement financings and there is no assurance that we will be successful in
completing any further private placement financings. If we are unable to achieve
the necessary additional financing, then we plan to reduce the amounts that we
spend on our business activities and administrative expenses in order to be
within the amount of capital resources that are available to us.
On April 22, 2010, we entered into a convertible loan agreement with Monaco
Capital Inc., wherein Monaco Capital Inc. agreed to loan our company up to
$500,000
The total advanced under the Convertible Loan as at May 31, 2013 is $980,412.
RESULTS OF OPERATIONS - NINE MONTHS ENDED MAY 31, 2013 AND 2012
The following summary of our results of operations should be read in conjunction
with our financial statements for the nine month period ended May 31, 2013 and
2012 which are included herein.
Our operating results for the nine months ended May 31, 2013 and 2012 are
summarized as follows:
11
Nine Months Nine Months
Ended Ended
May 31, May 31,
2013 2012
---------- ----------
Consulting expenses $ -- $ 34,953
Exploration expenses -- 432,280
General and administrative 4,088 34,625
Professional fees -- 3,739
Impairment of mining claims -- 250,000
Impairment of capital assets -- 15,693
Interest expense 73,103 68,632
---------- ----------
Net loss from operations $ (77,191) $ (839,922)
========== ==========
|
REVENUES
We have not generated revenues since inception and we do not anticipate earning
revenues in the near future.
CONSULTING EXPENSES
Consulting expenses decreased by $34,953 for the nine months ended May 31, 2013
as compared to the nine months ended May 31, 2012.
EXPLORATION EXPENSES
Exploration expenses decreased by $432,280 during the nine months ended May 31,
2013 as compared to the nine months ended May 31, 2012.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses decreased by $29,912 during the nine months
ended May 31, 2013 as compared to the nine months ended May 31, 2012.
PROFESSIONAL FEES
Professional fees decreased by $3,739 during the nine months ended May 31, 2013
compared to the nine months ended May 31, 2012.
12
LIQUIDITY AND FINANCIAL CONDITION
WORKING CAPITAL
May 31, August 31,
2013 2012
------------ ------------
Current assets $ 2 $ 977
Current liabilities 1,486,527 1,410,312
------------ ------------
Working capital (deficit) $ (1,486,525) $ (1,409,335)
============ ============
|
OPERATING ACTIVITIES
Net cash provided by operating activities was $770 for the nine months ended May
31, 2013.
INVESTING ACTIVITIES
Net cash used in investing activities was $Nil for the nine months ended May 31,
2013.
FINANCING ACTIVITIES
Net cash used in financing activities for the nine months ended May 31, 2013 was
$768.
CONTRACTUAL OBLIGATIONS
As a "smaller reporting company", we are not required to provide tabular
disclosure obligations.
OFF-BALANCE SHEET ARRANGEMENTS
We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to
stockholders.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities an
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
13
NET LOSS PER COMMON SHARE
Our company computes net loss per share in accordance with ASC 260, "Earnings
per Share" and SEC Staff Accounting Bulletin No. 98 (SAB 98). Under the
provisions of ASC 260 and SAB 98, basic net loss per share is computed by
dividing the net loss available to common stockholders for the period by the
weighted average number of shares of common stock outstanding during the period.
The calculation of diluted net loss per share gives effect to common stock
equivalents; however, potential common shares are excluded if their effect is
anti-dilutive. For the period from inception (July 20, 2006) through May 31,
2013, our company had no potentially dilutive securities.
STOCK-BASED COMPENSATION
On August 1, 2009, the company adopted the fair value recognition provisions of
FASB ASC 718-10. The company accounts for equity instruments issued in exchange
for the receipt of goods or services from other than employees in accordance
with FASB ASC 505-10. Costs are measured at the estimated fair market value of
the consideration received or the estimated fair value of the equity instruments
issued, whichever is more reliably measurable. The value of equity instruments
issued for consideration other than employee services is determined on the
earliest of a performance commitment or completion of performance by the
provider of goods or services as defined by FASB ASC 505-10.
MINERAL PROPERTY COSTS
The Company has been in the exploration stage since its formation July 20, 2006
and has not yet realized any revenues from its planned operations. It is
primarily engaged in the acquisition and exploration of mining properties.
Mineral property acquisitions are capitalized and exploration costs are charged
to operations as incurred. When it has been determined that a mineral property
can be economically developed as a result of establishing proven and probable
reserves, the costs incurred to develop such property, are capitalized. Such
costs will be depleted using the units-of-production method over the estimated
life of the probable reserve.
Although the Company has taken steps to verify title to mineral properties in
which it has an interest, according to the usual industry standards for the
stage of exploration of such properties, these procedures do not guarantee the
Company's title. Such properties may be subject to prior agreements or transfers
and title may be affected by undetected defects.
GOING CONCERN
Our company has incurred a net loss $77,191 for the nine month period ended May
31, 2013 and at May 31, 2013 had a deficit accumulated of $5,255,610. Since
inception (July 20, 2006) to May 31, 2013, our company has commenced limited
operations, raising substantial doubt about our company's ability to continue as
a going concern. Our company will seek additional sources of capital through the
issuance of debt or equity financing, but there can be no assurance our company
will be successful in accomplishing its objectives.
The ability of our company to continue as a going concern is dependent on
additional sources of capital and the success of our company's plan. The
financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts, or amounts and
classification of liabilities that might result from the outcome of this
uncertainty.
At this time, we cannot provide investors with any assurance that we will be
able to raise sufficient funding from the sale of our common stock or through a
loan from our directors, shareholders or investors to meet our obligations over
the next twelve months. Other than a convertible loan agreement with Monaco
Capital Inc., we do not have any further arrangements in place for any future
debt or equity financing.
14