In Form 10-K filed on January 29, 2015, Majesco Entertainment Company’s auditor, EisnerAmper LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to EisnerAmper, the Company has suffered losses. Management believes that there may not be sufficient capital resources from operations and existing financing arrangements in order to meet operating expenses and working capital requirements for the next twelve months.
Accordingly, the Company is evaluating various alternatives, including reducing operating expenses and personnel costs, securing additional financing for future business activities and other strategic alternatives including a sale or merger of the Company, although the Company has no present arangements to do so.
There can be no assurance that the Company will be able to generate the level of operating revenues in its business plan, or if additional sources of financing will be available on acceptable terms, if at all. If no additional sources of financing are available, it could have a material effect on future operating prospects. Read more on audit concerns.