Quarterly report pursuant to Section 13 or 15(d)

GOING CONCERN

v3.23.1
GOING CONCERN
3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2 GOING CONCERN

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of approximately $19.3 million at March 31, 2023 including the impact of its net loss of approximately $1.7 million for the three months ended March 31, 2023. Net cash used in operating activities was $0.1 million for the three months ended March 31, 2023. The Company’s ability to continue with this trend is unknown. The Company’s ability to raise additional capital through the future issuances of common stock and/or debt financing is unknown. On March 3, 2023, the Company issued Ross Sklar, CEO, a related party, a $800,000 note payable due July 1, 2023 (see Note 7), whereby the entirety of the note was used as a loan payable to Soylent to pay down Soylent’s debt as part of the Soylent Acquisition. The obtainment of additional financing and the successful development of the Company’s contemplated plan of operations, to the attainment of profitable operations are necessary for the Company to continue operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.