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BASIS OF PRESENTATION
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6 Months Ended |
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Jun. 30, 2012
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| BASIS OF PRESENTATION | |
| BASIS OF PRESENTATION |
NOTE 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements include the accounts of Health Enhancement Products, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All significant inter-company accounts and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information set forth therein. These consolidated financial statements are condensed, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s December 31, 2011 consolidated audited financial statements and supplementary data included in the Annual Report on Form 10-K filed with the SEC on March 30, 2012.
The results of operations for the six months ended June 30, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2012, or any other period.
The Company incurred net losses of $1,807,272 and $780,458 for the six months ended June 30, 2012 and 2011, respectively. In addition, the Company had a working capital deficiency of $2,358,782 and a stockholders’ deficit of $3,142,047 at June 30, 2012. These factors continue to raise substantial doubt about the Company's ability to continue as a going concern. During the first six months of 2012, the Company raised $757,000 in net proceeds from the issuance of convertible debentures, $57,000 from loans payable – other and $50,000 from the issuance of common stock. Until the Company can develop a stable source of revenue from operations, the Company will be dependent on its ability to raise capital. There can be no assurance that the Company will be able to raise additional capital.
The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.
Certain reclassifications have been made to prior-year and prior period comparative financial statements to conform to the current year and period presentation. These reclassifications had no effect on previously reported results of operations or financial position. |