"I was also interested in the discussion about the tax carry forward loss advantage (until
the year 2012, if I remember correctly), and in the affirmation that XYBR is very Y2k
conscious. Yahoo profile shows excellent financial strength and no debt! This to me
means the company is being well-managed."
This is too much. Excellent financial strength? This company has not made one copper penny of profits in it's entire existence. It has $16,000,000 in carry-over LOSSES. Let me repeat that last one, 16 million dollars in losses. No debt? When you don't earn any money, how do you finance your operations? Steal it? Beg it? Borrow it? Does XYBR have a money tree out back?
I suggest you read the 10QSB. Here's an excerpt:
In April 1998, the Company entered into an equity line of credit
agreement in which the Company received an initial gross amount of $1,000,000 in
exchange for Common Stock, and realized cash proceeds of approximately $974,000
after related expenses. Under this line of equity the Company has the right to
obtain up to $10,000,000 in a series of installments based on terms and
conditions specified in the line of equity.
Notice the word credit. Notice in the 10QSB where one of XYBR's parts suppliers is filing a lawsuit against XYBR for breach of contract? Why would they do that? Because they haven't been paid? Maybe.
This company burned 1.6 million dollars last quarter to earn 127,000 dollars. It's burned at least 16 million dollars trying to get this product off the ground. If XYBR doesn't start earning some serious money fairly quickly, how long are it's CREDITORS, and that includes it's shareholders, going to continue to finance it's money-losing operations?
Link to 10QSB: edgar-online.com |
