ZITL's 10Q is out. The mgmt. discussion of liquidity is interesting, especially re. their plans for doing another $ 10 M of convertible debentures in December:
Here are excerpts from the 10Q:
Liquidity and Capital Resources
During the nine-month period ended June 30, 1998,
... cash flow utilized by operating activities was $9,635,000....
Net cash provided by financing activities was $10,805,000 which included $9,567,000 which was raised from the issuance of 3% convertible subordinated debentures and $1,238,000 from the exercise of employee stock options and from the sale of stock under the Company's employee stock purchase plan. The Company has an unutilized $1,500,000 bank line of credit. The line expires on September 30, 1998. Management believes that the Company will meet its cash requirements during the next twelve months from current cash on hand, other working capital, cash flow from operations, the available bank line of credit, and the additional $10,000,000 debentures potentially available to the Company within six months of the June 1998 private placement.
Note that the market cap is about $90 M. The co. expects to raise funds at a rate equivalent to ~ 20% of market cap per year. |
