Dark,

I'm very busy these days and don't have the time to review thoroughly the financials. Frankly, I've only read the Management's Discussion and Analysis.

 

Here's my favorite part of the MD&A: "The Company received approval from the Debenture holders to amend all of the existing debentures, by extending the timeline for repayment for an additional 36 months, and reducing the interest rate payable on the outstanding indebtedness from 18% to 14%."

 

You will see that this debt was included in the negative working capital (5,331,876) for Q2 2012.  Remember that Working Capital = Current Assets -- Current Liabilities, and current liabilities are defined all liabilities due within 1 year. Therefore, this amendment to the debentures must have happened in the current quarter (Q3 2012).

 

I don't think explosive growth is a realistic expectation until the company increases its sales staff for TV advertising. That necessary additional head count for sales staff may not be feasible until the company is funded adequately. In other words, the delay in funding results in lower quarterly growth rates.