69W-700.026. Unsound Financial Condition

(1) Registration of an issuer may not be permitted if the financial statements demonstrate the issuer to have an unsound financial condition. (2) Such unsound financial condition is determined by: (a) An accumulated deficit; (b) Negative shareholders equity; (c) An inability to satisfy current obligations as they become due; (d) Negative cash flow; or (e) Financial statements that include a footnote or explanatory paragraph in the independent auditor’s report regarding the issuer’s ability to continue as a going concern.