From FLNKD's 10Q:
FUTURELINK DISTRIBUTION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999 and 1998 (unaudited)
NOTE 1. BASIS OF PRESENTATION
The accompanying 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. As shown in the financial statements, the Company has an accumulated deficit amounting to $10,432,780, a working capital deficiency of $1,534,882 and total net operating cash outflows of $2,511,543. The Company has also violated its working capital ratio relating
to its credit facility. The Company's continuation as a going concern is in substantial doubt and dependent on its ability to generate sufficient cash flow to meet its obligations on a timely basis, to obtain additional financing as may be required, and ultimately to attain successful operations. However, no assurance can be given at this time as to whether the Company will achieve any of these conditions. The financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern for a reasonable period of time.
During the period from March 31, 1999 to May 10, 1999, management has raised $8,663,500 gross proceeds of additional capital in the form of convertible debentures and promissory notes which has enabled the Company to eliminate its working capital deficiency and remedy the violation of its credit facility. The Company's recent registration with the Securities and Exchange Commission is also expected to increase the Company's growth and expansion opportunities.
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