LOSSES DURING THE DEVELOPMENT STAGE AND MANAGEMENT'S PLANS
Through June 30, 2002, the Company had incurred development stage losses totaling approximately $101,366,000, and at June 30, 2002 had working capital of $399,321. The primary reason for the improvement in the Company's working capital position at June 30, 2002, were the conversions of approximately $2.7 million of accounts payable and accrued expenses due to related parties and strategic vendors to equity, $1.5 million of accounts payable and accrued expenses due to strategic vendors into Notes payable and $1.9 million of accounts payable and accrued expenses due to related parties and strategic vendors expected to be converted to equity in fiscal 2003. At June 30, 2002, the Company had approximately $47,065 of cash, cash equivalents and approximately $273,780 of trade receivables to fund short-term working capital requirements. The Company's ability to continue as a going concern and its future success is dependent upon its ability to raise capital in the near term to: (1) satisfy its current obligations, (2) continue its research and development efforts, and (3) the successful wide scale development, deployment and marketing of its products. |
