In the recently filed Form 10-Q, Eco Science Solutions Inc (OTCMKTS:ESSI) reported that it has recently introduced its current operation activity and has not yet recorded revenues from its initial business operation.
The company has changed the focus of its business to function in the eco-friendly technology market utilizing social media sites and providing apps to download fees and record advertising revenues. Its need for ongoing funds by way of loans, convertible notes and/or sale of equity is anticipated to continue during the ongoing fiscal year until they can generate revenues from businesses.
The highlights
Eco Science Solutions is currently financing underway licensing support and maintenance costs linked with its newly commenced operations focus by the shares issuance of common stock for services at a markdown to market price. There are no guarantees additional funds will be accessible to the firm on satisfactory terms.
Future financing could lead in potentially dilutive issuances of securities, the debt incurrence, amortization costs linked to goodwill and intangible assets and/or contingent liabilities, which could materially adversely impact the Eco Science Solutions’ business, financial condition and results of operations. Any future financing might require the firm to obtain additional debt or equity financing, which might not be accessible on terms satisfactory to the firm, or at all, and such funding, if accessible, might be dilutive.
As of October 31, 2016, Eco Science Solutions posted total current assets and total current liabilities of $71,008 and around $2.97 million, respectively. This compares to total current assets and total current liabilities of $6,706 and $716,511, respectively at the fiscal year closed January 31, 2016.
The firm has limited resources accessible outside loans from its directors and officers and funds it has acquired through use of loans and convertible debt instruments with third parties. While it is working towards making revenue to counterbalance some of its current operating expenditures, it is likely that without realization of surplus capital, it would be improbable for the firm to last as a going concern.
