Needless to say no one should derive any pleasure from the latest VLNC filing. I do not. I do hope no one suffers a loss they cannot afford to bear. The following are representative excerpts from the filing. It does not contain all of the most alarming representations. Suffice to say, the signals of grave status in the past SEC-required filings have been accurate. The hype from touts on this board - both those who have long disappeared and the few who remain - is substantially misleading and/or false, based on the clear meaning of the representations in this filing.
"We have an immediate need for additional capital which, if not obtained, would cause us to reduce developmental efforts and impair our ability to commercialize our products. "
"We anticipate that, after taking into account projected revenues and receipt of funds from other sources,[Ed. Note !!!!!!!!] we will need to raise in either a debt or equity financing a minimum of $25 million to fund planned capital expenditures, research and product development, marketing and general and administrative expenses and to pursue joint venture opportunities in fiscal 2000."
"We expect to incur significant losses in the future as we continue our product development and marketing capabilities. We will need to secure additional financing in order to continue operations past 1999 unless we begin to generate significant operating revenue. We
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will have to continue to devote a significant amount of management time to obtaining financing."
"We are actively pursuing capital grant advances from the Northern
Ireland Industrial Development Board, such advances are contingent on us achieving cumulative revenues from the sale of batteries of $4 million. We may not achieve such cumulative revenue over the short term, or at all."
"We Do Not Yet Have The Sales Staff, Support Capabilities And Distribution Channels To Distribute Our Products On A Commercial Scale."
"We Are In The Early Stage Of Manufacturing, And If We Are Unable To Develop Our Manufacturing Capability Cost effectively, We Will Be Unable to Generate Profits."
"To date, we have not manufactured batteries on a commercial scale. Until recently, our batteries have been only manufactured on our pilot manufacturing line, which is able to produce prototype cells in quantities sufficient to enable customer sampling and testing and product development. Any failure to achieve acceptable yields of commercial quality batteries in commercial quantities, and thereby to reduce our unit manufacturing costs, could have a material adverse effect on our business, results of operations and financial condition. We are currently in the early stages of transitioning production to an automated high volume production line located in the manufacturing facility Northern Ireland." |
