Ed, thanks for the 10-Q link. Re burn rate and business strategy:
<Currently, the Company is changing its focus from custom projects to
self-funded development projects as part of its strategy to become a
product-oriented company. During this transition period, revenues are not expected to be material, as the Company will be focusing on developing new product sales channels. The Company currently has two new products under development. One product addresses the Year 2000 problem, and the other targets the disaster recovery market. The Company has made significant progress in the development of the Year 2000 product, having recently entered the first phase of the beta testing program, and the disaster recovery product, which also remains on schedule. Both products are designed to help business managers analyze, plan for, and manage mission-critical business issues and the Company is on track to release these products during 1997. The Company intends to continue to selectively pursue strategic contract software development projects that could allow for further development of an important technology on a paid basis, or facilitate the development of relationships with potential distribution partners. An inability by the Company to develop new products or obtain new orders could have a material adverse effect on the Company's business ...
Liquidity and Capital Resources
At June 30, 1997, the Company had cash and equivalents of approximately $5,184,000, working capital of approximately $4,954,000, and stockholders' equity of approximately $5,207,000 ...
Based on the Company's operating plan, the Company believes that the
Company's current cash balances will be sufficient to satisfy its capital requirements and finance its operation for at least the next nine months ...>
Nine months is February 1998. Burn rate is appx $55,000/month. At $25,000/disc, that's 22 discs/month (assuming all $25,000 goes to top line - no commissions, etc.) to fund operations. Dosen't seem like a whole lot ... |
