iCoreConnect Inc, a cloud-based software and technology company, is facing substantial doubt about its ability to continue as a going concern. According to its recent SEC report, the company must raise additional funds to meet its obligations and sustain operations. This uncertain outcome has led to the company’s financial statements not including any adjustments that might result from this uncertainty. iCoreConnect Inc., with ticker ICCT, focuses on increasing workflow productivity and customer profitability through its enterprise platform of applications and services.
Table of Contents
The financial statements presented in the SEC report are the responsibility of the company’s management, while the role of the auditor is to express an opinion on the company’s financial statements based on audits conducted.
The report shows that iCoreConnect’s financial performance has been impacted in the past two years due to restatements in net loss attributable to Common Stockholders, suggesting possible challenges in the company’s progress.
The company’s balance sheet as of December 31, 2022, shows cash assets of $196,153, a decrease compared to December 31, 2021, when it had $71,807 in cash assets.
This downward trend in the company’s working capital reveals the company’s struggle to continue its operations. Along with the cash assets, the company’s total current assets have increased from $1,013,140 in 2021 to $1,091,668 in 2022. This increase may not be significant enough to cover the company’s current and future obligations, as seen by the total current liabilities that have increased dramatically from $4,054,246 in 2021 to $6,798,969 in 2022.
In addition to the balance sheet, the company’s statement of operations demonstrates a net loss of $(6,079,824) for the years ended December 31, 2022, compared to $(4,964,182) for the years ended December 31, 2021.
The increase in net loss highlights the challenges faced by iCoreConnect in maintaining profitability and sustaining its operations. The statement of cash flows also shows a negative cash flow from operating activities of $(1,272,995) for the year ended December 31, 2022, contributing to the uncertainty in the company’s ability to continue as a going concern.
While iCoreConnect has tried to mitigate the financial challenges it faces, including raising funds through the issuance of common stock and acquiring other companies to expand its offerings, the current market conditions have made it difficult for the company to maintain profitability and cover its financial obligations.
Additionally, the company is also dealing with the burden of restating its financial statements for previous years due to errors in the accounting treatment of certain warrants issued.
In conclusion, iCoreConnect Inc. is confronting substantial doubt about its ability to continue as a going concern due to its financial struggles and the need to raise additional funds.
The company’s financial statements highlight its challenges in maintaining profitability, as well as the increasing liabilities and risky cash flow situation. To overcome these issues, iCoreConnect will need to strategize new ways to increase cash flow, reduce liabilities, and achieve profitability in the coming years.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!