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 incurred an accumulated deficit of through and had a net loss of and for the and month ended respectively. To date, our revenues and operating cash flows have been sufficient to sustain our operations and we have relied on debt and equity financing to fund our operations. These factors raise substantial doubt about our ability to continue as a going concern for the months following the filing date of our Quarterly Report on Form -Q, Our ability to continue as a going concern is dependent upon our ability to raise additional capital on a timely basis until such time as revenues and related cash flows are sufficient to fund our operations.

 

Management has undertaken steps to improve our financial position with the goal of sustaining our operations. These steps include (a) developing a full product line of lithium battery packs for forklifts; and (b) expanding our sales force throughout the United States. In that regard, we have increased our research and development efforts to focus on completing the development of energy storage solutions that can be used on larger forklifts. During we shipped our Class LiFT Pack to a Fortune heavy machinery conglomerate for evaluation and have continued the improvement and development of the Class LiFT Pack, as well as, the development of the Class and Class packs. Our Class End Rider LiFT pack was presented at a major Food & Beverage tradeshow during and we anticipate sending additional evaluation packs out beginning in Additionally, our GSE LiFT Pack has been under evaluation for the past year and we received our major production order for GSE LiFT packs that are scheduled to be shipped by the end of We have also doubled our sales force since with personnel having significant experience in the industrial equipment handling industry. Combined with the development of relationships with of the nation’s largest industrial equipment manufacturers we have generated revenues in excess of fiscal revenues during each of the past quarters. The impact of these efforts is expected to continue to be seen throughout the remainder of fiscal

 

We have evaluated our expected cash requirements over the next months, which include, but are limited to, investments in additional sales and marketing and product development resources, capital expenditures, and working capital requirements and have determined that our existing cash resources are sufficient to meet our anticipated needs during the next months, and that additional financing is required to support current operations. Based on our current and planned levels of expenditures, we estimate that total financing proceeds of approximately will be required to fund current and planned operations for the months following the filing date of this Quarterly Report on Form -Q. In addition, we anticipate that further additional financing be required to fund our business plan subsequent to that date, until such time as revenues and related cash flows become sufficient to support our operating costs.

 

Management plans to raise additional required capital through private placements of equity securities and through draws on our existing related-party credit facilities. We initiated a private placement of equity securities in under which we are authorized by the Board of Directors to raise up to (See Note ). As of a total of was raised pursuant to this private placement, of which, was raised prior to Subsequent to the closing on the offering was terminated.  Additionally, as more fully discussed in Note we have credit facilities with Esenjay Investments, LLC (“Esenjay”). Esenjay is deemed to be a related party as Mr. Michael Johnson, the beneficial owner and director of Esenjay, is a current member of our board of directors and a major shareholder of the Company. The Unrestricted Line of Credit has a maximum borrowing amount of of which was available for future draw as of and the Inventory Line of Credit has a maximum borrowing amount of of which was available for future draws as of

 

Although management believes we will be able to obtain additional required funding, there is guarantee we will be able to obtain such funding on a timely basis or that funds will be available on terms acceptable to us. If such funds are available when required, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which have a material adverse effect on our future cash flows and results of operations, and our ability to continue operating as a going concern. The accompanying financial statements do include any adjustments that would be necessary should we be unable to continue as a going concern and, therefore, be required to liquidate our assets and discharge our liabilities in other than the normal course of business and at amounts that differ from those reflected in the accompanying condensed consolidated financial statements.