Freeedgar just notified me that MSU has filed its 10Q for the period ending December 31st, 1997.
Link is available at:
freeedgar.com
Just started reading it, but the most disturbing info is that MSU only reports having $15,000 in cash/cash equivalents as of the end of the year. This compares to the $859,000 they held on June 30th, 1997.
That makes for a $1.6 million per year cash burn rate.
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Editted comments...
t December 31, 1997 the Company's principal source of liquidity was
approximately $15,000 in cash. Since December 31, 1997 additional liquidity
has been provided by the receipt of further loans of $125,000 under the above
mentioned bridge note private placement. The total bridge loan is anticipated
to be $1 million. The loan bears interest at 9%, has a term of one year and
shall be prepaid from 50% of the proceeds of any institutional equity
investment and from new licensing fees obtained from its products.
The Company believes that cash flows expected to be generated by operations
through the remainder of fiscal 1998 may not be sufficient to meet its cash
needs for working capital and capital expenditures for remainder of fiscal 1998.
The Company is actively pursuing negotiations for additional capital to fund
its operations through private sales of equity or debt securities and or
borrowings from third parties. The sale of additional equity or convertible
debt securities will result in an additional dilution to the Company's
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Regards,
Ron |
