Annual report pursuant to Section 13 and 15(d)

NOTE 2. GOING CONCERN

v3.10.0.1
NOTE 2. GOING CONCERN
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
NOTE 2. GOING CONCERN

The Company has suffered recurring losses from operations and has a working capital deficit and stockholders' deficit, and in all likelihood, will be required to make significant future expenditures in connection with continuing marketing efforts along with general administrative expenses. As of December 31, 2017, the accumulated deficit is $17,703,171, a $142 cash balance, carrying loans of principal and interest in default totaling $1,029,140, current notes payable and interest of $1,196,420 and negative cash flows from operating activities of $162,557. These principal conditions or events, considered in the aggregate, indicates it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. As such, there is substantial doubt about the entity’s ability to continue as a going concern.

 

On May 25, 2017, the Company increased their number of unauthorized shares from 100,000,000 to 800,000,000 as they hope to raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or others, and debt restructure (conversion of debt to equity). By doing so, the Company further hopes to generate revenues from sales of its alcohol sensing and ignition lock systems. The Company is currently engaged in talks with potential sales reps, funding sources, and manufacturers. They may also consider opportunities to create synergy with its SOBR product. Management believes actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. Management’s plans are speculative at this time, and no formal documentation of these plans nor approvals of such plans have occurred before December 31, 2017. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of December 31, 2017.