GOING CONCERN

12 Months Ended

Jun. 30, 2016

NOTE 2 – GOING CONCERN

The consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. For the year ended June 30, 2016 and 2015, the Company had a net loss of $1,162,602 and $1,303,345 and net cash used in operating activities of $128,514 and $701,190. The Company was able to generate proceeds of $730,901 representing the initial milestone payment from the license agreement entered into in June 2015 enabling them to fund the operating activities during the year ended June 30, 2016.

The Company continues to enact measures to address liquidity, working capital and operating concerns including issuance of capital stock for cash, and repayment of loans, fees and expenses as well as executing new debt financing arrangements, as further described in Note 6 to the consolidated financial statements.

The ability of the Company to continue as a going concern is therefore dependent on the continued forbearance of its creditors and the ability of the Directors to raise additional capital. The Company is confident that creditors will continue to provide extended credit and that they will be able to successfully complete further capital raising initiatives. Accordingly, the continuation of the Company as a going concern is dependent upon the ability of the Company to be able to obtain the continued forbearance of its creditors and its capital raising initiatives.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount of or classification of liabilities that might be necessary as a result of this uncertainty.

MARIPOSA HEALTH, INC. 10-K