from prospectus - most likely to fail, again
We have a history of losses
Developing our particle technology and products has been and we expect will continue to be expensive. We recently have incurred increased operating expenses without a corresponding increase in revenues. We reported a net loss of $1,558,083, $4,017,785 and $4,729,072 for our fiscal years ended June 30, 2004, 2003 and 2002, respectively and a net loss of $206,626 for the three-month period ended September 30, 2004. In addition, we decreased the value of our intellectual property on our financial statements by $608,061 and $210,000 for our fiscal years ended June 30, 2004 and 2003, respectively.
We may not be able to continue as a going concern
Our independent auditors’ report on our financial statements as of June 30, 2004 includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. As a result of this going concern modification in our auditors’ report on our consolidated financial statements, we may have a difficult time obtaining significant additional financing. If we are unable to secure significant additional financing, we may be obligated to seek protection under the bankruptcy laws and our shareholders may lose their investment. |
