GolfGear International, Inc. designs, develops and markets innovative premium golf clubs intended to improve the quality and performance of a golfer's game. As of March 31, 2012 the company's total assets were higher than its liabilities, though the net loss increased. Besides, the long-term liabilities of GEAR were not covered. As a result of all the losses incurred, the future operation of Golfgear has been placed under a going concern.
The management states that the ability of GEAR to continue operation is dependent upon obtaining financing adequate to fulfill its exploration activities, development of its properties and achieving a level of revenues adequate to support the company's cost structure. Otherwise, there is no assurance that GEAR will be able to implement its business plan.