That cup of coffee ($1.57) now costs more than a share of VSTY ($1.5625). Never took the plunge on this one, though the concept would seem to be a natural for the Internet. As of March 31, 2000, they had about $29 MM in cash and short term investments after having used $14.3 MM for operating activities during the first quarter. The Liquidity and Capital section of the 10-Q talks about how they will have negative cash flow until the second half of 2001 but that they will run out of cash during the first quarter of 2001. Time to redo those projections.
sec.gov
We expect that operating losses and negative cash flows will continue until at least the second half of 2001. As part of the shift in our focus to concentrate on increasing the number of companies for whom we provide higher margin marketing services, we anticipate that costs and expenses related to brand development, marketing and other promotional activities associated with our book retail business will decrease from current levels. Although this is likely to result in decreased revenues from the sales of new textbooks than would be the case if we continued to spend at or above our current levels, we believe, in the aggregate, this shift will reduce the losses and negative cash flows from our sales of new textbooks. We intend to increase spending on development of relationships with other businesses. We believe that we can capture additional revenues, on which we expect to recognize higher gross margins, by increasing the number of businesses for whom we provide marketing services. Our failure to generate sufficient revenues, raise additional capital or, if necessary, reduce discretionary spending could harm our results of operations and financial condition.
We currently anticipate that the net proceeds of our initial public offering, together with funds available under the revolving credit facility, will be sufficient to meet our anticipated needs for working capital and capital expenditures into the first quarter of 2001. We may need to raise additional funds prior to the expiration of such period if, for example, we pursue new business, technology or intellectual property acquisitions or experience net losses that exceed our current expectations. Any required additional financing may be unavailable on terms favorable to us, or at all. |
