What is going concern?From Wikipedia
"If, after considering identified conditions and events and management's plans, the auditor concludes that substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time remains, the audit report should include an explanatory paragraph (following the opinion paragraph) to reflect that conclusion."
From Q2 FS
"Net loss and comprehensive loss for the six months ended September 30, 2022 was $2,980,307
(2021 - $1,389,571). Additionally, the Company reported negative cash flow from operations
(before changes in non-cash working capital) of $1,741,458 for the six months ended
September 30, 2022 (2022 - $368,851). As at September 30, 2022, the Company had an
accumulated deficit of $16,538,681 (March 31, 2022 - $13,558,374) and a working capital
deficiency of $2,842,434 (March 31, 2022 - $696,908)."
What does this mean?
Year to date
1) the company reported a 3 million dollar loss.
2) cashflow from operations was a 1.7 million dollar loss. This is VERY serious in my opinion.
3) working capital deficiency of $2.8 million dollars. This is VERY VERY serious in my opinion.