When a company's current liabilities are higher than current assets this tends to be a pretty big indicator that the company is insolvent... particularly as the current assets balance is predominately made up of a receivable from related parties, these receivables repayment deadlines have been missed going on a few years now.
If you impair that receivable to $nil, than the working capital deficit much more acute.... any failed attempt at the next capital raise you would have to think that the Directors will be seriously considering putting this business into chapter 9 insolvency protection.
The Directors decision to extend the related party receivable will need to be seriously scrutinised as this decision has significantly deteriorated the company's financial position. And I would have a guess that we have been trading insolent for quite sometime now.
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