Hi bob - from the 10Q
biz.yahoo.com
did you see this
At September 30, 2000 the Company was not in compliance with all of the financial covenants, due to larger than expected net operating losses. The Company is in the process of applying for a waiver from the bank with respect to these financial tests. If the Company is successful in obtaining this waiver, then the appropriate portion of these notes will be reclassified as long-term liabilities.
I don't want to cause undue alarm to the longs, and indeed, subsequently, it states that
...and believe that these funds will be sufficient to meet our working capital needs for at least the next 12 months.
but this is the catch
However, we may need to raise additional funds in order to support more rapid expansion of our sales force, develop new or enhanced products or services, respond to competitive pressures, acquire complementary businesses or technologies or respond to unanticipated requirements. If we seek to raise additional funds, we may not be able to obtain funds on terms which are favorable or otherwise acceptable to us. If we raise additional funds through the issuance of equity securities, the percentage ownership of our stockholders would be reduced. Furthermore, these securities may have rights, preferences or privileges senior to our Common Stock.
So, be careful, sometimes a stock may be cheap for a reason. I hope that is not the case here
best, Bosco |
