Technologies Sonomax Inc SXHHF

Going concern assumption

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SONOMAX TECHNOLOGIES INC.
Notes to the unaudited interim consolidated financial statements
Three-month and six-month periods ended June 30, 2010 and 2009

In addition, management’s on-going plans are as follows:
1. Seek additional financing through the exercise of outstanding warrants and securing
operating facilities;

2. Enter into alliances with strategic partners for the co-development of products and license
the manufacture and sale of its products;

3. Secure new sales orders for current inventory, and;

4. Secure new licensing agreements based on new V4 technology platform.
Management believes that with the above plans and actions already undertaken, the continuing
support of the Company’s debt holders and trade creditors and its ability to generate sufficient cash
from operations, secure financing arrangements and obtain new capital to meet its obligations as
they become due, the Company will be able to continue in operation as a going concern. There is,
however, significant risk associated with the plans described above resulting in sufficient funds
being generated.

These matters are dependent on a number of items outside of the Company’s control and there is
substantial uncertainty about the Company’s ability to successfully conclude on the matters.
Should the Company be unsuccessful in the efforts described above, it may be obliged to seek
protection from its creditors.

The interim consolidated financial statements do not reflect any adjustments that would be
necessary if the going concern basis was not appropriate. If the going concern basis was not
appropriate for these consolidated financial statements, significant adjustments would be necessary
in the carrying value of assets and liabilities, the reported revenue and expenses, and the balance
sheet classifications used.