Annual report pursuant to Section 13 and 15(d)

1. Organization and Nature of Operations

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1. Organization and Nature of Operations
12 Months Ended
Sep. 30, 2016
Notes  
1. Organization and Nature of Operations

1.             Organization and Nature of Operations

      

ActiveCare, Inc. (“ActiveCare” or the “Company”) was formed March 5, 1998.  In July 2009, ActiveCare was reincorporated in Delaware.  The Company provides products and services to those diagnosed with chronic illnesses, provides real-time visibility to health conditions and risk, and has a unique active approach in caring for members.

 

                Going Concern

The Company continues to incur negative cash flows from operating activities and net losses.  The Company had minimal cash, negative working capital and negative total equity as of September 30, 2016 and 2015, and is in default with respect to certain debt.  These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

In order for the Company to eliminate substantial doubt about its ability to continue as a going concern, it must achieve profitability, generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet its projected capital investment requirements.  Management's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of the Company's services and products.  There can be no assurance that the Company will be able to raise sufficient additional capital or that revenues will increase rapidly enough to achieve operating profits.  If the Company is unable to increase revenues or obtain additional financing, it will be unable to continue the development of its products and services and may have to cease operations.