Tim and All: 10-Q filed today; does not look too rosey. Here are some of my observations:
Quarter ending March 31, 1997.
Loss per share $0.05, 1996-$0.06, although number of shares increased from 33.7 million in 96 to 45.8 million in 97. So the more realistic number is:
1st quarter loss: $2,307,000 1997, compared to loss of $2,092,000 in 1996.
Revenues are up, $31,900,000 '97, $26,500,000 '96.
This is the statement that is not good:
"Going Concern
For the three months ended March 31, 1997, (the "March 1997 period"), the Company incurred a net loss of $2,307,000 and has an accumulated deficit at March 31, 1997 of $52,525,000 and approximately $6,760,000 of debt that is in default. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the success of the Company's subsidiary's marketing efforts and their efforts to obtain sufficient funding to enable them to continue operations. Management's plan is to continue efforts to raise capital through initial public offerings of the underlying subsidiary's equity and to manage them to profitable levels once adequate funding is in place. There can be no assurances that management's plans to raise additional capital and to manage the subsidiaries to profitable levels will be successful. The failure of the subsidiaries to raise capital by equity offerings of their stock may force the Company to reduce operations via the closure of certain segments of operations and could ultimately force the Company as a whole to cease operations."
All who follow this thread please provide your own insight for others who are struggling with this stock.
Thanks.
-Ken- |
