I heard about USRF from my neighbor, who lurks on a number of threads here, then saw USRF mentioned on one of the threads I read. After reading many of the postings here I looked for news/info. over at Yahoo! Basically, it looks to me as if the company has no money, has had deals to purchase ISPs fall though due to a lack of money, and is going to have trouble getting hold of any additional capital from a reading of their Quarterly Report (SEC form 10QSB) filed Nov. 25 '98.
USRF might be a good stock to play with for a bit given the hype (elsewhere, not on this thread), but it sure looks like a company on the road to bankrupcy to me. Its just my opinion, but anyone in this already, carefully read the 10QSB:
sec.yahoo.com
just one bit from this, at the end:
[begion quote]
Management's Plans Relating to Future Liquidity
It is management's opinion that the Company will be unable to improve its current liquidity position
without a further infusion of cash in an amount of not less than $200,000. For the remainder of Fiscal
98, the Company's current operations will be unable, on their own, to alleviate the Company's
current lack of liquidity. In response to its lack of liquidity, the Company has begun to attempt to
license the use of its Wireless Internet System in various cities, the licensee's to pay for the
installation and implementation of the company Wireless Internet System, such that the Company will
begin to generate immediate cash flow, as well as continuing royalty income. No prediction can be
made as to the likelihood that the Company will be successful in implementing this strategy or
otherwise obtaining needed financing.
Capital Expenditures
During the remainder of Fiscal 98 and the first half of Fiscal 99, the Company expects to apply
substantially all of its available capital to the build-out and start-up of one or more of its Wireless
ISP markets and to purchase equipment necessary to install and implement licensed Wireless
Internet Systems, if any. Currently, the Company is under contract to acquire an existing ISP in St.
George, Utah, and will be required to deliver approximately $250,000 at the closing thereunder.
Currently, the Company does not possess capital with which to acquire this ISP and there is no
assurance that the necessary capital for such proposed transaction will be available.
[end quote]
This Utah contract and another are mentioned earlier in the report:
[quote begin]
Acquisition Agreements. In July 1998, the Company executed an agreement to acquire an ISP
located in St. George, Utah, for cash, the closing under which has been postponed indefinitely by
mutual agreement, due to the Company current lack of capital. (See "Liquidity and Capital
Resources" below).
In August 1998, the Company executed an agreement to acquire an ISP located in Santa Fe, New
Mexico, for cash and stock, which agreement has been abandoned.
[quote end]
Careful people. |
