FOOTNOTES: Recent Going-Concern Statements
DOW JONES NEWSWIRES
March 28, 2005 5:00 p.m.
The following is a list of companies whose independent auditors recently issued statements indicating they have doubts about the company's ability to continue as a going concern. Also included are companies that have raised doubts about their viability.
Cardiac Science Inc. (DFIB)
Company's 10K for 2004 included a going-concern statement from its auditor PricewaterhouseCoopers LLP.
Reported: March 23
Focus Enhancements Inc. (FCSE)
Company's 10K for 2004 included a going-concern statement from auditor Deloitte & Touche.
Reported: March 23
America Online Latin America Inc. (AOLA)
Warned it could decide to file for bankruptcy protection "at any time" while trying to sell its assets or cease operations. Expects a going-concern statement from auditors.
Reported: March 22
HealthGate Data Corp. (HGAT)
Auditor PricewaterhouseCoopers issued a going-concern statement in its report for 2004 financial statements. PwC has been dismissed.
Reported: March 22
Proxim Corp. (PROX)
Wireless networking company said its financial report for 2004 contained a going-concern statement from its auditor.
Reported: March 18
Emisphere Technologies Inc. (EMIS)
Form 10-K includes a going-concern uncertainty from auditors.
Reported: March 21
Maxxam Inc. (MXM)
The company's latest auditor's report states that the difficulties of certain units raise substantial doubt about the ability of the company to continue as a going concern.
Reported: March 16
FLYi Inc. (FLYI)
Auditors will likely report a "substantial doubt" about the airline company's ability to continue as a going concern in its 2004 audit report. FLYi, parent of discount carrier Independence Air, also said it expects to incur operating losses for 2005 and at least the first quarter of 2006.
Reported: March 16
Cygnus Inc. (CYGN)
Said its auditor's report, part of the company's Form 10-K, includes a going-concern warning.
Reported: March 16
AaiPhama Inc. (AAII)
Said its auditor's report for 2004, if issued, will include a going-concern doubt qualification. The company has delayed making its 2004 annual filing and won't be able to file the Form 10-K by the March 31 extension date. The filing said the company has held preliminary talks with lenders regarding, among other matters, financing its operations under potential bankruptcy-law protection.
Reported: March 16
Novavax Inc. (NVAX)
Auditor raised doubt the biopharmaceutical company can remain a going concern. Company said its ability to continue as a going concern depends on securing capital and becoming profitable.
Reported: March 15
Oragenics Inc. (ONI)
Oragenics said its accounting firm issued an audit report with a going concern statement due to the company's need for more funds in 2005 and beyond.
In 2003, Oragenics posted a loss of $1.7 million. In its 10-KSB filing, Oragenics said it expects to incur future losses.
Reported: March 14
Emisphere Technologies Inc. (EMIS)
Independent auditor raised doubt about the company's ability to remain a going concern, according to a Securities and Exchange Commission filing.
PricewaterhouseCoopers LLP (PWC.XX) cited Emisphere's sustained operating losses, limited capital resources and "significant future commitments" in issuing its report.
Reported: March 14
Staar Surgical (STAA)
Expects its auditors to express substantial doubt about its ability to continue as a going concern due to recurrent losses and negative cash flow despite higher revenue during the fourth-quarter.
Reported: March 10
Superconductor
Its auditor PricewaterhouseCoopers LLP expressed doubt about the company's ability to continue as a going concern due to past losses and negative cash flow.
Reported: March 10
V.I. Technologies Inc. (VITX)
Announced that it received a going-concern qualification in the audit report which was included in its Form 10-K recently filed with the Securities and Exchange Commission. The qualification was based on the cash balance of the company as of Dec. 31, which wasn't sufficient to fund operations over the next year.
Reported: March 7
Dotronix Inc. (DOTX)
Its auditor included a going-concern statement in its 10-QSB filing for the second quarter ended Dec. 31, stating that, because the company's lender will no longer advance funds under its line of credit, there is substantial uncertainty that the company will be able to continue as a going concern.
Reported: Feb. 24
Genaissance Pharmaceuticals Inc. (GNSC)
Said it expects its auditors to issue a going-concern statement on the company's 2004 financial statements. The company said it is taking steps to reduce its operating expenses and increase its revenue while at the same time reviewing opportunities such as reorganizing the company, disposing of some assets and other strategic alternatives; however, there is no assurance that these measures will be successful.
Reported: Feb. 10
TenFold Corp. (TENF)
Said it expects its auditors will qualify their opinion on its 2004 financial statements for going-concern reasons, since at its recent cash burn levels, it would exhaust its cash balances within a few quarters.
Reported: Feb. 1
Obsidian Enterprises Inc. (OBDE)
Said its auditor has informed Obsidian that it will likely include a going-concern qualification in its report on the company's fiscal 2004 financial statements.
Reported: Feb. 1
Avitar Inc. (AVR)
Peter Phildius, chairman and chief executive of the drug testing equipment maker, said the company is working with placement agents and investment fund managers to raise about $8 million in equity or debt securities in fiscal 2005 to enable the company to continue as a going concern.
Reported: Jan. 27 |
