The company's financial report has been prepared by management assuming that Jammin will be able to continue as a going concern and realize its assets and discharge its liabilities in the normal course of business. However, certain conditions raise substantial doubt about the company's future existence.
Among these are the history of losses and huge deficit that make Jammin dependent on its ability to complete equity financings or generate profitable operations.
The company anticipates using the funds received from Straight Path to meet its capital needs for the remainder of fiscal 2012. However, the team claim that they may need additional capital by selling debt or equity securities. If accomplished, this may result in dilution to the company's shareholders and could have an adverse effect on its business.