What is is about ALYA that for some reason does not impress me, despite the "good" news releases that come out? Under ordinary circumstances a filing such as this would be presumed to be very positive. Reading the PR Release, it's easy to pass over a key omission. Note from the release: "Revenues for the six months ended March 31,1999 were $386,795 as compared to $157,749 for the same period during 1998. Gross profit increased to $159,561 from $47,502 during the period. Loss for the six months was ($1,442,804) vs. ($904,940) or ($0.11) vs. ($0.09) per share. The weighted average number of common shares outstanding 13,443,010 vs. 10,622,463."
What stands out to me are three significant figures. #1 Revenues were $386,795 for the six months ending March 31, 1999. #2 The loss for the six months ended March 31, 1999, was $1,442,804 and #3 the "weighted average number of shares listed is 13, 443, 010." I ask myself how that could be so. If the Audited Annual report shows the weighted number of outstanding shares on September 30, 1998 stood at 13,770,477 shares and there was a loss from operations of $1.4 plus million, resulting from investment in R & D, Sales Offices and G & A expense and only sales of $386,000 to offset those expenses where did the money come from to pay for those investments if not through the issuance of additional shares since September 30,1998.
Why does this Company find it so difficult to be up front with the public and its shareholders? On September 30, 1998, they had just under $75,000 in cash and $72,000 in accounts receivable.Their gross profit according to today's release for six months ending March 31, was all of $159,561. They list expenditure totaling $1,601,052. We know they do not have line of credits at banking facilities to cover such a discrepancy the only common sense answer is that they sold a slew of stock to raise the capital. Why can't they tell us how many shares for how many dollars and at what price per share? If they concluded their Fiscal Year accounting period on September 30, 1998, why do they state in today's release that a portion of the increase in R & D expenses ocurred "near the end of the fiscal year ended September, 30, 1998." That portion of the expense had to have been charged off last year, unless they play fast and loose with accounting principles.
It certainly would be an encouraging thing for shareholders if the prognostications about sales revenues for the second half of the year are borne out by Audited figures. If ALYA stays true to course in its reporting history however we may have to wait until next spring to find out. By then we probably will have some more hot news to enable those who picked up this $1.5 million or more in new stock to file their 144's and let the public in on a great bargain.
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