Re: BDE
We now have some idea of how their new acquisition, auctionchannel.com, is performing from the latest filing (page 8, amendment to form SB-2A):
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THE AUCTION CHANNEL MAY NEVER ACHIEVE PROFITABILITY.
The Auction Channel has a limited operating history upon which to evaluate its future prospects. The Auction Channel was founded in 1996 and commenced operations in July 1996. The Auction Channel had net losses of approximately $310,000 in fiscal 1997, $521,000 in fiscal 1998 and $1,289,000 for the nine months ended March 31, 1999, and an accumulated deficit of $2,119,000 as of March 31, 1999 relating to net losses from the period from July 1, 1996 through fiscal 1997 and 1998 and the nine months ended March 31, 1999. We expect that The Auction Channel will continue to sustain losses at least for the next twelve months.
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It appears to be only a matter of months before they run out of cash for operations and draw on that $6 million represented by the convertible. October, at the latest, is my guess. |
