According to their 10_SB, there were 7,155,503 shares outstanding as of 12/31/97. As of 3/31/98 there were 11,157,596 outstanding shares. As of April 98, according to their filing, they reported 12,050,280 shares outstanding. That is an increase of approximately 5 million shares during the 1st 4 months of 1998. According to Mark Lewis at ADOT, that figure has again increased since then. They filed a reg D in March, stating they intend to raise an additional $1,000,000 over the next 12 months. I assume that figure is intended to come from the sale of stock also.
As of 3/31/98 they reported they had $739,493.00 cash on hand, up from $74,421.00 reported on 12/31/97. In their filing, they state "additional R & D is needed before the panel displays become fully marketable. The company believes the remaining R & D will cost approximately $225,000.00". I wonder how much additional cash is needed.
The 1.7 Million dollar contract is to be paid for on the percentage of completion method. As of 3/31/98 they had received $144,000.00, payments on the partially completed order. This figure is from their 10-SB.
Personally, I would prefer they complete the existing order, raising operating capital that way, rather than dilute existing shareholder value. I would think the 1.5 Million remaining to be paid on the contract, would be sufficient operating capital to continue operations since they state they have orders for 2 additional boards. This would not only provide the much needed funds necessary for day to day operations, but also the credibility in the market place, which could only lead to future orders. JMHO.
As always, in an effort to be completely objective, I am interested in hearing any comments, either pro or con.
Happy investing,
Blessed |
