Not so good with 10-K's - can someone explain the

Not so good with 10-K's - can someone explain the significance of this statement from the 10-K and how it relates to the recent PR that included comparisons to other similar companies? Does dilution raise concerns?

The accompanying financial statements have been prepared assuming that Treaty will continue as a going concern. As shown in the accompanying financial statements, we had negative cash flows from operations of $1,472,542 in 2011, $330,851 in 2010, and a working capital deficit of $1,533,553 at December 31, 2011. These conditions raise substantial doubt as to our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. Management intends to finance these deficits by making additional shareholder notes and seeking additional outside financing through debt.