At first glance things look good
Here's another glance from the last annual
report filed with the SEC in May 2001:
From the management discussion:
Our net loss increased $553,894 to $2,633,292
in 2000 from $2,079,398 in 1999.
As a result of this loss and the losses
incurred since 1997, we accrued a net
operating loss carryforward as of
December 31, 2000, of $6,943,000 and
$3,472,000 for federal and state income
tax purposes, respectively. The federal
and state net operating losses begin to
expire in 2012 and 2002, respectively.
Because we anticipate significant expenditures
with respect to implementing our
business plan, including our Internet
e-commerce business, it is uncertain that
we will be sufficiently profitable,
if at all, during the net perating loss
carryforward period to realize the
deferred income tax asset. These factors,
among others as discussed in Note 10 to
the financial statements, raise ubstantial
doubt about our ability to continue as a going concern.
What the auditors have to say:
The accompanying consolidated financial
statements have been prepared assuming
hat the Company will continue as a
going concern. As discussed in Note 10
to the financial statements, the Company
has incurred significant net losses
the last three years and requires
additional capital to fund its operations.
These conditions raise substantial
doubt about the Company's ability to
continue as a going concern.
Management's plans in regard to these
matters are described in Note 10. The
consolidated financial statements
do not include any adjustments that
may result from the outcome of this uncertainty.
Stock prices:
YEAR PERIOD HIGH LOW
---- ------ ---- ---
Fiscal Year 1999
First Quarter 18.000 6.000
Second Quarter 17.500 8.000
Third Quarter 25.000 7.000
Fourth Quarter 6.500 2.248
Fiscal Year 2000
First Quarter 12.248 2.248
Second Quarter 5.248 1.500
Third Quarter 4.248 1.500
Fourth Quarter 1.872 0.624
The current annual report is late and the
stated reason is:
The Registrant is unable to file the subject
report in a timely manner because the
Registrant was not able to complete timely
its financial statements without
unreasonable effort or expense.
What do you think now, do things
still look good? |
