GOING CONCERN
The Condensed Consolidated Interim Financial Statements have been prepared on the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.
For the three months ended March 31, 2020, the Company reported a comprehensive loss of $1,577,272, negative cash flow from operations of $11,591,457, negative working capital of $43,500,651 and an accumulated deficit of $163,552,785 as at March 31, 2020. Further, as at March 31, 2020, $81,552,725 of the Company's debt was due within the next 12 months. Subsequent to March 31, 2020, the Company made significant progress by extending the maturity of its $50,000,000 senior note to March 2025, converting $1,125,976 of its unsecured convertible debentures due in October 2020 and deferring $1,666,160 of its unsecured convertible debentures to June 2022. Additionally, the Company undertook various cost savings measures during the three months ended March 31, 2020 that will be fully realized during the three months ended June 30, 2020 and onwards. Despite these advancements, the aforementioned conditions cast a material uncertainty on the Company’s ability to continue as a going concern. The Condensed Consolidated Interim Financial Statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company acknowledges that there is material uncertainty over the Company's ability to meet its funding requirements as they fall due. The Company’s ability to continue in the normal course of operations is dependent on its ability to extend its debt maturing in Fiscal 2020. While the Company has been successful in renegotiating its debt in the past, there is no assurance that it will be successful in doing so in the future. The Company has established and put into motion various initiatives to reduce costs and expand revenues as part of the Company's strategic plan to attain profitability and positive cash flows in Fiscal 2020.