From Yahoo: Statistics at a Glance--XYBR Last Updated: May 8, 1998
Financial Strength Current Ratio (mrq) 2.29 Total Debt/Equity (mrq) 0
Given that this 10QSB is a marked improvement in per share loss, the above profile rating by Yahoo should improve. A rating of 2.29 is substantially better than ratings of .29 with a debt equity of .18 which is the kind of ratio that can be seen frequently on other stock.
From the 10QSB:
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
Net loss applicable to holders of common stock - 1998 (1,493.0%) 1997 (2,157.7%) (a big improvement)
LIQUIDITY AND CAPITAL RESOURCES (You asked where did they get their money, from a money tree?)
Since its inception until the completion of the IPO, the Company financed its operations from the private sale of its securities, from vendor credit and from short-term loans received from management, stockholders and others.
The specifics of the above is all outlined in the 10QSB. Somebody is believing in this company, not to mention SONY.
At March 31, 1998, the Company had no material capital commitments and working capital of $1,133,104. From the 10QSB.
My common sense tells me that a company like SONY does not make this kind of a contract without knowing the hows and whats of compliance. My business experience tells me that what one sees as accounting figures may look like one thing on the surface and be, in fact, a totally different thing. There is more to know and more to be explored.
Also, you have only picked out parts of the filing. Regarding the lawsuit - here is the other part -
On April 30, 1998, the Company filed a motion in the same court to
dismiss the complaints contained in the March 19, 1998 filing by Matrix. While there can be no assurance of the outcome of this legal proceeding, the Company's management believes that the claims by Matrix are groundless and that the impact of this legal proceeding will not be adversely material to the Company's operations.
No company can continue to operate with heavy losses. However, what we have is a company which has been heavily invested in their R & D, has a viable product and is, like many, a turn-around company, imo. I can quickly name (as can you) companies getting off the ground, surviving hostile takeovers, surviving bankruptcy, etc. etc. that nevertheless have a good product and go from bottom to substantial gain. Did Henry Ford arrive with the first prototype automobile and a positive cash balance sheet?
Charger
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