Though its just more fodder for Auric to rant about, I think the following exerp from International Automated Systems 10Q filing is noteworthy. I believe the patent that IAS holds and claims infringement on relates to using weighing systems in self checkout counters but am not totally certain.
Pretty much a non-existent company whose primary remaining asset is probably the patent itself.
(COMTEX) Management`s Discussions: 10QSB, INTERNATIONAL AUTOMATED SYS
Management`s Discussions: 10QSB, INTERNATIONAL AUTOMATED SYSTEMS INC
(Edgar Online via COMTEX)
Company Name: INTERNATIONAL AUTOMATED SYSTEMS INC
- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources. As of March 31 , 2000, Registrant had cash of
$17,697 compared to cash of $0 as of June 30, 1999. Cash increased because of
contributions by the majority shareholder. As of March 31, 2000, total current
assets were $41,958 and total assets were $1,191,023 compared to total current
assets $23,523 and total assets $900,156 as of June 30, 1999.
As of March 31, 2000, Registrant had total liabilities of $280,440 and
shareholders' equity of $910,583 as compared to total liabilities of $217,639
and shareholders' equity of $682,517 as of June 30, 1999. The deficit
accumulated during the development stage was $5,470,335 as of March 31, 2000,
compared to $4,958,464 as of June 30, 1999. For the near term the Company's
ability to continue its operations and activities is dependent upon the
Company's major shareholder providing funds to the Company. At this time the
Company is not generating sufficient funds to sustain its operations. The
decrease in shareholders' equity is attributable primarily to the continuing
operating losses. These activities have significant risks involving the
development of technology and the development of products that may be
commercially acceptable and profitable. As of March 31, 2000, the ratio of
current assets to current liabilities was approximately .20 to one.
Results of Operation. For the quarter ended March 31, 2000, Registrant had total
revenues of $0 compared to total revenues of $1,078 for the same period a year
earlier. For the quarter ended March 31, 2000, Registrant had total operating
expenses of $191,677 compared to expenses of $252,340 during the same quarter a
year earlier. As of March 31, 2000, cost of sales was $0 as compared to cost of
sales of $62 during the same quarter a year earlier. For the quarter Registrant
had a net loss of $191,809 compared to a net loss of $421,934 for the same
quarter a year earlier. The decrease in net loss is attributable to the decrease
in general and administrative expenses and a decrease in research and
development expenses due to downsizing to meet the Company's current financial
position. For the quarter, the net loss per share was $(0.01) compared to $(.03)
for the same quarter a year earlier. For the quarter ended March 31, 2000,
general and administrative expenses were $98,242 compared to $119,394 and
research and development expenses were $87,928 compared to $129,396 a year
earlier.
For the nine months ended March 31, 2000, Registrant had total revenues of $0
compared to total revenues of $13,510 for the same period a year earlier. For
the nine months ended March 31, 2000, Registrant had total operating expenses of
$511,318 compared to total operating expenses of $803,256 during the same period
a year earlier. For the nine months ending March 31, 2000, cost of sales was $0
as compared to cost of sales of $62 during the same period a year earlier. For
the nine months ended March 31, 2000, Registrant had a net loss of $511,871
compared to a net loss of $961,254 for the same period a year earlier. The
decrease in net loss is attributable to the decrease in general and
administrative expenses and research and development expenses due to downsizing
to meet the Company's current financial position. For the nine months ended
March 31, 2000 the net loss per share was $(0.03) compared to $(0.06) for the
same quarter a year earlier. For the nine month period ended March 31, 2000,
general and administrative expenses were $219,532 compared to $343,937 and
research and development expense were $283,911 compared to $448,668 a year
earlier.
The Company's ability to continue its activities is dependent on it receiving
funds either as loans, advances or sales of equity. Previously the major
shareholder has provided funds, but there is no formal agreement between the
Company and the majority shareholder to continue providing funds in the future.
If the Company had to seek funds from another source there is no assurance that
funds would be available at all or on terms acceptable to the Company. PART 88.
Item 1. Legal Proceedings.
On September 23, 1998, the Company was notified by the U.S. Securities and
Exchange Commission (SEC) of formal action against the Company, its president,
and members of his family for possible securities violations. The action stems
from alleged material misrepresentations by the Company regarding new technology
developed by the Company. The SEC is seeking disgorgement of the proceeds from
the sale of stock by the Company and its principles that occurred between June
1995 and June 1996. This figure is believed to be in excess of $3, 000,000. The
SEC is also seeking the imposition of fines and attorney's fees. The ultimate
outcome of the action cannot presently be determined. Accordingly, no provision
for any liability that may result has been made in the accompanying financial
statements, and the possible effect that action will have on future financial
statements is unknown.
The Company has filed a civil action complaint in the United States District
Court for the District of Utah Central Division against Optimal Robotics Corp.
and PSC, Inc. alleging patent infringement arising under the patent laws of the
United States, and more specifically, under Title 35, U.S.C. Sections 271, 281,
283, 284 and 285. The Company has filed a civil action complaint in the United
States District Court for the district of Utah Central division against The
Kroger Company alleging patent infringement arising under the patent
infringement arising under the patent laws of the United States, and more
specifically, under Title 35, U.S.C., section 271, 281, 283, 284, and 285. |
