As of October 31, 2011 current liabilities of TAON increased by approximately 50% as compared to the previous period, and the net loss jumped up. Besides, both - the stockholders' deficit and the company's deficit also rose up.
Management of TAO stated that they have not yet achieved profitable operations. Thus, the company is dependent on their ability to raise capital from stockholders or other sources to meet their obligations and repay the liabilities arising from business operations.
Additionally, the 10-Q contains numerous risk factors related to the future successful operation of TAO, which obviously cannot be guaranteed.