To all:
While reviewing the latest 10KSB, I found the following information.
The Company's cash flow requirements to fund these activities and the general operations of the Company total approximately $800,000 and include approximately $200,000 for consulting and $100,000 for equipment among other costs. The Company expects to fund these costs with its current cash reserves of approximately $2,200,000 which came from private placements.
Now this:
Cash $561,796
Prepaid insurance 8,216
-------------
Total current assets 570,012
FIXED ASSETS
Furniture 7,523
Computer equipment 43,913
Manufacturing equipment and tooling 66,102
-------------
Less accumulated depreciation (19,351)
-------------
Total fixed assets 98,187
OTHER ASSETS
Patent rights,
net of accumulated amortization of $25,181 $1,496,537
Patent, copyrights and designs net of
accumulated amortization of $5,104 38,646
-------------
Total other assets $1,535,183
-------------
Total assets $ 2,203,382
Also this:
<PAGE>
ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
Years Ended June 30, 1999 and 1998
Period From September 23, 1996 (Inception)
Through June 30, 1999
September 23,
1996
(Inception)
Through
June 30,
1999 1998 1999
Operating expenses $ 400,161 333,601 898,445
Research and development expenses 525,000 - 525,000
--------------------------------------
Income loss from operations (925,161) (333,601) (1,423,445)
Interest income 22,780 23,966 47,196
--------------------------------------
Net loss $ (902,381) (309,635)
edgar.sec.gov
So, for the first six months of this year, they burned $900K
Even though they say they have 2.2 MM left to fund operations, almost 1.5 MM of that is in "OTHER ASSETS", or not in cash.
In cash, at the end of June, they only had around $500K left from the private placement. At the rate they were burning cash the first half of the year, they should be broke.
Will they sell more stock to finance operations?
What idiot would buy it?
Anyway,
Have fun,
Phil |
