GOING CONCERN AND MANAGEMENT'S PLANS (Notes)
|3 Months Ended|
Jul. 31, 2013
|Going Concern And Management's Plans [Abstract]|
|Going Concern And Management's Plans||
GOING CONCERN AND MANAGEMENT'S PLANS
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America Generally Accepted Accounting Principles ("GAAP") applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established a regular source of revenue sufficient to maintain its operating costs and allow it to continue as a going concern. As of July 31, 2013, the Company has an accumulated deficit of $46,112,474, incurred a net loss for the period ended July 31, 2013 of $4,666,367 and has working capital of $810,206.
Over the past year, funding was provided by management and investors to maintain and expand Nuvilex and Austrianova Singapore Private Limited (“ASPL") located in Singapore. As of July 10, 2013, new investors enabled the completion of the acquisition of BBB which has given rise to the ability to begin immediate preparations toward the pancreatic cancer clinical trials the Company has been planning. The remaining challenges beyond the regulatory and clinical aspects include accessing funding for the company to cover its future cash flow needs. The Company continues to acquire additional funds through management's efforts, in particular from accredited investors, and is now driving toward the goal of providing a new pancreatic cancer treatment that will increase the median survival and number of survivors in the future.
In addition, the Company requires substantial additional capital to finance its planned business operations and expects to incur operating losses in future periods due to the expenses related to the core businesses of the Company. The Company has not realized material revenue since it commenced doing business in the biotechnology sector and it is not without doubt that it will be successful in generating revenues in the future in this sector.
If the Company is not able to raise substantial additional capital in a timely manner, the Company may not be able to complete its required clinical trials and may be forced to cease operations.
The Company will continue to be dependent on outside capital to fund its research for the foreseeable future. If the Company fails to generate positive cash flows or fails to obtain additional capital when required, the Company may need to modify, delay or abandon some or all of its business plans.
The Company has worked with the Senior Executive Officers of SG Austria across a number of areas over the past year. The Principals of Nuvilex and SG Austria collaborated and will be carrying out the manufacturing for the Company as well as potentially developing new areas for the use of live-cell encapsulation.
The Company's first vision was to ensure the opportunity for the previously successful pancreatic cancer trials to move forward and this was accomplished through the acquisition of BBB. The acquisition enabled the Company to advance itself as a biotechnology/life technology company. Thus, with an overall goal of long-term growth, management believes the Company is poised to be thrust forward, particularly as a result of the stabilizing of its financial condition that has been occurring over the past year.
Management's objective is to become an important industry-leading Biotechnology company with a multi-part strategy, like those of larger pharmaceutical companies, which would strengthen the Company's position in both the short and long term. Nuvilex may seek to raise capital to fund growth opportunities and provide for its working capital needs as the Company's business strategy is executed. The Company's efforts to achieve financial stability and carry out its strategy include several primary components:
1. Elimination of remaining prior operation-associated debt from the parent Company and all subsidiaries;
2. Complete the pancreatic cancer treatment preparations in order to prepare for initiation of the pancreatic cancer clinical trial;
3. Enhance the Company's ability to expand the biotechnology through research and partnering;
4. Acquire new contracts and revenue utilizing both in-house products and the newly acquired biotechnology licensing rights;
5. Expand and market Company products and their uses to generate revenue;
6. Further develop uses of the technology platform through contracts, licensing, and joint ventures with other companies;
7. Complete testing, expand, and market existing and newly derived Company products and their uses.