Some SEC DD:
S3 dated 10/1/99.
"OUR COMMON STOCK WAS DELISTED FROM THE NASDAQ SMALLCAP MARKET AND THERE MAY BE A LIMITED TRADING MARKET FOR OUR STOCK."
"WE HAVE HAD A HISTORY OF OPERATING LOSSES AND PROJECT FUTURE LOSSES; THEREFORE WE HAVE DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN."
"At June 30, 1999, we had negative working capital of $697,596. Subsequent to June 30, 1999, we received net proceeds of $3,302,570 from the sale of 35
units, each unit consisting of (i) 100 shares of newly-created series c convertible preferred stock and (ii) a common stock purchase warrant. Each share
of series c convertible preferred stock is convertible into approximately 1,159 shares of our common stock and each warrant entitles its holder to purchase 100,000 shares of our common stock at an exercise price of $.8625 per share."
"At June 30, 1999, our accumulated deficit was $38,665,314. For the six months ended June 30, 1999 and the fiscal years ended December 31, 1998 and 1997, we incurred net losses of $3,252,857, $7,294,032 and $10,563,484, respectively. We have incurred a net loss in each year of our existence, and have financed our operations primarily through sales of equity and debt
securities."
"Substantially all of our revenues for the foreseeable future are expected to be derived from sales of QueryObject System. Between January 1, 1995 and June
30, 1999, we had software product revenue from only 21 QueryObject System installations, including those sold pursuant to reseller agreements for the resellers' own use."
"Effective with the close of business on May 6, 1999, our common stock was delisted from the Nasdaq SmallCap Market because of our inability to comply with certain maintenance standards required for continued listing on the Nasdaq SmallCap Market, including the net tangible asset requirement. We fell out of compliance primarily as a result of continued losses during 1998."
"The Boston Stock Exchange has notified us that while
we currently meet its continuing listing requirements, the exchange will monitor whether continued operating losses will jeopardize our ability to comply with its requirement that we have at least $500,000 in net tangible assets."
"If our common stock is delisted from the Boston Stock Exchange, our common stock could be considered a penny stock. Securities and Exchange Commission regulations generally define a penny stock to be an equity security that is not listed on Nasdaq or a national securities exchange and that has a market price of less than $5.00 per share, subject to certain exceptions."
"For the six months ended June 30, 1999, four customers accounted for 94%, and for the fiscal year ended December 31, 1998, four customers accounted for 80%, of our total revenues. We are unsure if we will realize significant future revenues from any of these customers."
Jeez, depressing honest writeup, but good product. I really have to sleep on this tonight. Jack
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