10QSB: SECURITY BIOMETRICS INC
(EDGAR Online via COMTEX) -- MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATIONS
RESULTS OF OPERATIONS
The Company continues to be engaged in organizational activities, including
searching for capital, and organizing development of the license for gesture
recognition technology. Because the Company is in its first year of operations,
there is not a corresponding period in the preceding year with which to compare
current year results.
For the quarter ended March 31, 2001, the loss from operations was $2,425,162,
compared to a loss of $2,770,068 for the period from inception, July 25, 2000
through December 31, 2000. The decrease resulted primarily from an decrease in
the charge for Stock options compensation expense from $2,596,550 to $2,252,638.
This charge to income was computed using the Black-Scholes Option Pricing Model,
in accordance with FASB STATEMENT NUMBER 123. This charge to income was a
noncash charge.
Other administrative expenses decreased to $171,921 for the three months ended
March 31, 2001, compared to $173,527 for the period from inception through
December 31, 2000. Consulting and professional fees related to the Company's
organizational activities comprised the major portion of other administrative
expenses.
The Company expects continuing operating losses in the near term as it seeks to
develop its technology and to arrange capital financing.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2001, the Company's liquid assets consisted of approximately
$89,000 in cash. Additional capital resources will be required to meet the terms
of the gesture recognition technology acquired under the license from DSI
Datotech.Systems, Inc. Under the terms of the license, a payment of $3,000,000
will be due by July 22, 2001. The Company is currently investigating various
sources of equity and/or debt financing to facilitate this payment, the
financing of operations, and other developmental costs.
(c) 1995-2001 Cybernet Data Systems, Inc. All Rights Reserved
Received by Edgar Online May 21, 2001
CIK Code: 0001101046
Accession Number: 0000950123-01-502848 |
