FNTN! Managements news letter to Investors:April 2000 Management letter
As you may have seen, we filed our 10-KSB with the SEC on Friday, April 14th. That report includes the audited 1999 numbers and opinion by Richard A. Eisner & Company, as well as comparative results for the year ended December 31, 1998.
Some things you should note about the report:
Our filing was extended so that we could include subsequent event disclosures about the acquisition of the assets in China of Longyin Network Technology in late March, and also to disclose the additional equity funding that we raised at that time. The financials don't reflect the added strength of the funds; look for that to show up on the March 31, 2000 10-QSB and reflect the additional working capital from first quarter activities (and limited debt).
The opinion indicates that we are a development stage company with some issue regarding our viability as a going concern. We look forward to the day when we won't have this opinion; but it is typically given to companies in the development stage which, like us, need to increase our sources of revenue and cash flow. However, we have gone a long way in addressing this with the first quarter actions taken in raising equity through the October 1999 registration, and the opinion should be read with this in mind. Again, as a development stage company, the going concern issue is virtually a given until we can grow the revenue base, or raise additional funds, as planned, for significantly greater growth.
The numbers, as advertised, include pretty consistent results with that of last year, with the exception of the significant non-cash expense item for the favorable conversion rates of certain debt (turned equity) transactions previously reported. We still need to grow the revenue base, and are making efforts to do that via normal course of business activity while continuing to evaluate possible acquisitions.
To that end, Financial Intranet's President, Michael Sheppard, has returned today from China where he spent two weeks with our new board member, Wilson He, investment advisors and investors in the hopes of identifying other companies there that could prove to be complementary to our current business plan. We plan on identifying such companies, either domestically or internationally, and, depending on the availability of currency (stock and/or cash), growing the business externally to the extent we can. Please look for a China update here in the next few days.
The report also indicated that the web site redesign is scheduled for the second quarter of 2000; we are still on track for this quarter for sure, and likely within the month, as we were able to access additional resources for some of the necessary behind-the-scenes project management while FNTN's management team was wrapped up for almost a month with the China acquisition. In fact, we will be going through final review of the web site's mapping, content and presentation this week, and will commence beta testing as Stockpoint works to assimilate their data within the framework of our site.
No one is as anxious as we are to expedite this launch. We are a small - but hopefully growing as we are actively seeking additional expertise - management team that has just gone through an audit, K, preparation for another registration (as we need to meet our commitments of having previously granted warrants evidenced with registered shares, and the previous registration statement has now expired), preparation for a shareholder meeting (tentatively set for the first week in June), acquisition, and everything else that building a business entails. However, we maintain a significant vested interest in seeing that the new web site is properly, efficiently and successfully launched. Please also look for a press release announcing the exact launch date. We've tried to keep you informed of the site's progress along the way but as of now, have not yet formally announced a date. We will do so, not only to increase exposure around the launch, but also to limit speculation as to when it will take place.
As always, feel free to e-mail with any comments (other than about the stock price, which we monitor but have no knowledge, control or prediction for, and the web site launch date, which we'll announce). Again we all have significant interest on the price for a wide variety of reasons - it effects your investment, a large part of our compensation and future, our ability to use the stock as currency for acquisitions, etc. - and we are working towards the long term goal of a cutting edge hi-tech company with a more attractive stock.
Copyright ¸ 2000, Financial Intranet, Inc.
Questions? Comments? Email us at info@fntn.com
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