The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
In determining the ability of the Company to operate under the going concern basis, the directors have considered the current economic environment as well as the level of funding available to it.
In doing so, the company has prepared detailed forecasts which have considered:
- the current and projected levels of available cash;
- the nature and term of outstanding liabilities; and
- any future fundraising (see below).
The Company is engaged in the commercialisation of intellectual proerty. As is usual in this industry, it relies on funding from investors for these activities as revenues from other trading activities are not sufficient to cover expenses.
The Company's forecast incorporates additional funding requirements for the Company to adequately meet its
operational objectives for at least twelve months from the signing of these financial statements.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. This is based on development and commercial progress to date and ongoing investor discussions that reinforce the expectation that the Company will be successful in securing, within twelve months, additional funding from investors to support the Company's activities.
However, if further funding is not received, this may mean that the Company cannot meet its liabilities as they fall due which gives rise to a material uncertainty regarding going conern.
On the basis of the above, the directors are satisfied that it is appropriate to prepare the financial statements of the Company on a going concern basis.