What this tool does
You enter cash on hand and monthly net burn. The tool projects cash month by month against the ASC 205-40 one-year-from-issuance horizon, screens whether substantial doubt exists before considering plans, and then walks the management-plans test: probable to be implemented, and probable to be effective. It ends with a disclosure posture, not just a number, because the number alone is not the accounting conclusion.
Who it’s for
CFOs of pre-revenue and early-revenue public companies, and anyone whose auditor has already said the words going concern out loud.
How to use it. Step by step
- Enter cash and monthly net burn. Use net burn, not gross spend; collections count.
- Anchor the horizon. The look-forward runs one year from issuance of the financials, not from the balance-sheet date.
- Screen for substantial doubt. If projected cash runs out inside the horizon, the two-step begins.
- Assess the plans. Raises, cuts, and facilities count only if probable to implement and probable to work; document that judgment.
How to read the result
An amber verdict is not a death sentence: it is the signal to build the plans memo and draft the footnote early, on your timeline instead of the auditor’s.
Common questions
Is this the same as my auditor’s assessment? It walks the same framework, but your auditor makes their own evaluation. Use this to arrive prepared, not to skip the conversation.
Do you see my cash position? No. The projection runs in your browser and is gone when you close the tab, unless you choose to save or email it.