Project 12+ months of cash from your issuance date and walk the ASC 205-40 two-step — substantial doubt before plans, then whether management's plans qualify to alleviate it. All computation happens in your browser.
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Every reporting period, management — not the auditor — must evaluate whether there is substantial doubt about the entity's ability to continue as a going concern (ASC 205-40-50-1). The mechanics trip up even experienced teams, starting with the window: the evaluation covers one year from the date the financial statements are issued or available to be issued, not one year from the balance-sheet date. A company that files three months after year end must see twelve months of viability from the filing date, which effectively means fifteen months of cash visibility from the balance-sheet date.
The standard is a strict two-step. Step 1 asks whether it is probable the entity will be unable to meet obligations as they come due within the window, evaluated before considering management's plans (ASC 205-40-50-4/-5). Step 2 lets plans into the analysis only if each plan is probable of being effectively implemented and probable of mitigating the conditions (ASC 205-40-50-6/-7). Committed facilities and executed agreements count; letters of intent and optimistic pipeline usually do not. If doubt is raised and alleviated, ASC 205-40-50-12 disclosures apply. If it is not alleviated, ASC 205-40-50-13 requires the explicit "substantial doubt" language in the notes — the sentence every investor screen picks up.
This assessor projects your monthly cash position from the expected issuance date — burn, committed inflows, one-time outflows like note maturities — then walks the two-step with you and shows which disclosure package the answers point to. Everything computes in your browser; your raw financials are never uploaded or stored unless you explicitly save them. If the result raises doubt, that is a conversation to have with a senior advisor months before the audit starts, not during it — the tool tells you where you stand today so the remediation window stays open.
One year from the date the financial statements are issued (or are available to be issued) — not one year from the balance-sheet date. A December 31 year end with statements issued in March means the evaluation window runs to the following March.
In Step 1, substantial doubt is raised when it is probable the entity will be unable to meet its obligations as they come due within the evaluation window — assessed BEFORE considering management's plans (ASC 205-40-50-4 and 50-5).
Only in Step 2, and only if it is probable both that the plans will be effectively implemented AND that they will mitigate the adverse conditions (ASC 205-40-50-6 and 50-7). An unexecuted term sheet or a hoped-for raise generally does not qualify.
ASC 205-40-50-13 requires disclosure of the conditions, management's evaluation, and management's plans — including the explicit statement that there is substantial doubt about the entity's ability to continue as a going concern.
No. Management's evaluation is required by ASC 205-40 each reporting period; the auditor separately evaluates going concern under PCAOB AS 2415. The auditor can reach a different conclusion from management, which is why running the two-step yourself first matters.