RE:RE:RE:RE:aura placements 7
Notes to the
Interim
Financial Statements
June 30, 2017
(Unaudited
–
Prepared by Management)
(
e
xpressed in Canadian dollars
unless otherwise stated
)
www.
verisante
.com
TSX
-
V: VRS.V
2
Basis of presentation
(continued)
Going concern of operations
The Company reported a loss of $
647,363
,
has an accumulated deficit of $
23,659,477
and has a working capital
deficiency of $
1,086,172
.
D
ue to these conditions, there is a material uncertainty on the Company’s ability to continue
as a going concern. The key risks to the Company’s sustainability a
re the ability to increase cash flows through common
share equity raises, obtain additional debt financing, and increase revenues. As of
June 30
, 2017
, the Company does
not have sufficient cash resources to meet its obligations for the next 12 months.
The
Company is currently closing on a convertible debenture financing for
up to
$4,000,000 from a private investor
subsequent to the
period
-
end date, the final terms of which are subject to approval from the TSX Venture Exchange. The
funds will be used to assi
st with meeting the Company’s business goals including its revenue sharing sales program for
its Aura device and to retire its outstanding acco
unts payable. Management anticipates that the Company will start
receiving the funds
during the
third
quarter
in
tranches of up to $500,000
and shall finalize closing once all funds are
received. The going concern capability of the Company
is dependent upon receiving this financing to ensure there are
sufficient resources to continue operations.
The Company is depend
ent upon this debt financing to restart its Aura device revenue sharing sales program and fund
marketing efforts, sales support, and service efforts to ensure the program is successful. If the Company is not
successful with the Aura device revenue sharing
sales program it will be unable to generate revenues and cash flows.
The directors of the Company believe the current plans and strategies will result in the Company achieving sufficient
cash flows to continue operating into the future and on that basis, t
he directors have maintained the going concern
assumption in the preparation of these
interim
financial statements.
These
interim
financial statements do not reflect any adjustments to the carrying values of assets and liabilities that
would be necessary i
f the Company were unable to achieve profitable operations or obtain adequate financing.