Another look at Legacy's (NASDAQ:LGCY) last SEC filing for period ending Jun 30.
Risk Factors
"...Need for Additional Capital; Uncertainty as a Going Concern. At June 30, 1997 the Company had working capital of ($476,610) compared to working capital of $1,155,017 at December 31, 1996. The Company has incurred net losses since inception and expects to continue to operate at a loss during 1997. The Company's prospects must be considered in light of the risks, expenses and difficulties encountered by companies in the early stages of development, particularly companies in new and
rapidly evolving markets. The Company's ability to maintain operations in the near term and to achieve positive cash flow in the future depends on a variety of factors. Given the Company's current working
capital deficiency and lack of cash resources, should the Company be unable to obtain additional funding to supply its near-term cash requirements, there is substantial doubt as to the Company's ability
to continue as a going concern...Dependence on IBM for Substantially All the Company's Revenues. For the first six months of 1997,
approximately 88% of the Company's total revenue was derived from royalty payments made by IBM to the Company on sales of the Emergency Room title pursuant to the Company's co-development agreement with IBM. The Company expects royalty revenue from the Emergency Room title, a DOS-based product, to diminish significantly over the course of 1997, as it will face increased competition from Windows-based
products. Although IBM is currently distributing and marketing the Emergency Room title on behalf of the Company, the Company and IBM have terminated their co-development relationship with respect to future RealPlay(TM) titles, including, but not limited to, the District Attorney title. In light of the Company's dependence on IBM for the distribution and marketing of its Emergency Room title, if sales of the Emergency Room title by IBM were to materially decrease, if IBM were to terminate its development and marketing relationship with the Company with respect to the Emergency Room title, if the Company is unable to develop other CD-ROM titles or other services, if the Company can not find alternative distribution arrangements for its present or future titles, or if the Company's other products and services, if any, do not receive market acceptance, there will be a material adverse effect on the Company's results of operations, financial condition and business..."
sec.yahoo.com
Subsequent to this filing Alpha entered into its relationship with LGCY suggesting an IBM resolution was arrived at. LGCY is trading at 52-week lows with no significant news nor SEC filings since its 10-Q ending June 30, 1997. 10-Q for period ending Sep 30 has not been filed. |
