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The Company's main financial risk exposure and its financial risk management policies are as follows:
Credit risk
Credit risk is the risk associated with non-payment of financial obligations by the customers of the Company. The credit risks faced by the Company are principally attributable to the collection of its accounts receivable. The accounts receivable balance is presented without a deduction for an allowance for doubtful accounts. The cash balances are held by a Canadian chartered bank which management believes the risk of loss is considered minimal, but it is subject to a consolidation of credit risk. The maximum credit risk is equivalent to the book value.
Liquidity risk
Liquidity risk is the risk that the Company experiences difficulty honouring commitments related to financial liabilities. The Company manages its liquidity risk by using budgets that enable it to determine the amounts required to fund its operations and administrative expenses. The Company also ensures that it has sufficient working capital available to meet its day-to-day commitments. As at March 31, 2018 the Company had cash of $45,309 ($5,600 as at September 30, 2017) to settle current liabilities of $6,010,271 ($5,950,076 as at September 30, 2017). Management estimates that such funds will not be sufficient for the Company to continue as a going concern (Note 2 of the condensed interim consolidated financial statements). Any funding shortfall may be met in the future in a number of ways including but not limited to, the issuance of new equity instruments, further cost reductions or other measures. While management may have been successful in securing financing in the past, there can be no assurance it will be able to do so in the future or that these sources of financing will be available with acceptable terms for the Company. If management is unable to obtain new financing, the Company may be unable to continue its operations, and amounts realized for assets might be less than amounts reflected in these condensed interim consolidated financial statements.
As at March 31, 2018, all of the Company' liabilities including debts and debentures had maturities of less than one year.