Liquidity concerns This paragraph is taken from page 22 of the report.
As at September 30, 2013 the Company had $24,866,726 in cash, of which $24,345,073 is restricted for
use in Phase I and Phase II of the San Jacinto Project. For the nine months ended September 30, 2013
the Company had accumulated losses of $39,681,126. Because of continuing operating losses, the
Company's continuance as a going concern is dependent upon its ability to obtain adequate financing
and to reach profitable levels of operation of San Jacinto Project at its capacity of 72 MW (net). The
Company will need to raise additional capital through debt, equity issuances, joint venture arrangements,
disposal of certain assets or other available means in order to continue funding operating and exploration
and development expenditures. However, it is not possible to predict whether financing efforts will be
successful or if the Company will attain profitable levels of operations. Management believes it will be
successful in raising the necessary funding to continue operations in the normal course of operations,
however, there is no assurance that these funds will be available on terms acceptable to the Company or
at all.
It makes me uneasy when they talk about their ability to be a "going concern". Going forward they will need equity or debt financing and they don't know if they will be able to get it on favourable terms. Most all of their cash on hand is tied up in the well remediation. I have been in other stocks when they have given the "going concern" talk and it has never ended well for the shareholders.