Statehouse Holdings Inc C.STHZ

Going Concern As Per STHZ

[Flagshipzilla]

0. As at June 30, 2023, the Company had cash of $3,276,432 and a working capital deficit of $114,758,960. Working capital is defined as current assets less current liabilities and provides a measure of the Company's ability to settle liabilities that are due within one year with assets that are also expected to be converted into cash within one year. The Company has experienced recurring operating losses of $12,730,058 and $23,837,760 for the six months ended June 30, 2023 and 2022, respectively, and has an accumulated operating deficit of $371,531,773 as at June 30, 2023. In addition, the Company had cash flows from operating activities for the six months ended June 30, 2023 of $2,293,305. Management anticipates that the Company will continue to incur cash deficits until such time as revenues exceed operating costs, cash interest expense, creditor obligations, capital expenditures, and working capital requirements and the Company is able to complete its restructuring plans, as further described below. These factors create material uncertainties that may cast significant doubt about the Company's ability to continue as a going concern.