Is Empower on the verge of shutting down permanently?
According to the chartered accountants who prepared the consolidated financial statements for 2012 this is a very real possibility.
The following notes have been taken directly from the 2012 annual financial statements. They are the expressed unqualified opinion of Manning Elliot LLP. Emphasis of Matter Without qualifying our opinion, we draw attention to Note 2 to these consolidated financial statements which describes the existence of a material uncertainty that may cast significant doubt about the ability of Empower Technologies Corporation to continue as a going concern.
CHARTERED ACCOUNTANTS
Vancouver, British Columbia
April 29, 2013
Going concern
These consolidated financial statements have been prepared on a going concern basis, which assumes that the Company
will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a
process of forced liquation. The Company has incurred losses of $30,521,123 since inception and further losses are anticipated in the development of its business plan.
As at December 31, 2012, the Company has a working capital deficiency of $2,760,857. [now in excess of 4 million] These circumstances lead to significant doubt as to the ability of the Company to meet its obligations as they come due, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern.
The Company’s continuing operations as intended are dependent upon its ability to develop products and technologies that can be commercialized. In order to continue as a going concern and meet its corporate objectives, the Company will require additional financing through debt or equity issuances or other available means. There is no assurance that the Company will be able to obtain adequate financing in the future or that such financing will be on terms advantageous to the Company.
What does this mean for the company and its shareholders? It means Manning Elliot are concerned enough to bring to the attention of all stakeholders that Empower is in danger of shutting down. We are hanging by a string and at any point the doors may close permanently. At that point Paul Leung would take possession of the assets of the company as his personal collateral.
In spite of this companies desparate position there has been no news/updates in nearly 2 months and yet Leung is asking investors for more money. This is consistent with Leung's communication strategy.
Where is the CEO?