This grubber was sick after reading the 10Q. Here is one of my favorite parts.
The Company experienced net losses of $67,490,000 and $21,329,000 in the year ended
December 31, 1997 and the nine months ended September 30, 1998, respectively, and
anticipates a net loss of $2,000,000 to $4,500,000 in the fourth quarter of 1998, which
raise doubt about its ability to continue as a going concern after 1998. The Company
anticipates that the net proceeds from the sale of common stock in its July 1997 initial
public offering, together with cash generated from operations and existing cash balances
will be adequate to finance its operations through 1998. Thereafter, the Company's cash
flow requirements will depend on the results of future operations.
There can be no assurance that these expectations will be realized. After 1998, the
Company's continued existence is dependent upon its ability to achieve a cash flow
breakeven position and/or to obtain additional sources of financing. The Company
implemented a restructuring plan on December 2, 1998 to further reduce its expenses
which included the elimination of approximately 45 employees and related facilities costs.
It is anticipated that this plan will result in a charge to earnings in the fourth quarter of
1998 of approximately $1.2 million. The Company is also exploring strategic initiatives to
raise additional funds. There can be no assurance that the Company will achieve a cash flow
breakeven position or that it will be able to raise additional funds through bank borrowings
and/or debt and/or equity financings. Reductions in expenses or the sale of assets may not
be adequate to bring the Company to a cash breakeven position. In addition, there can be no
assurance that such actions will not have an adverse effect on the Company's ability to
generate revenue or successfully implement any strategic alternatives under consideration.
Failure to establish a cash flow breakeven position or raise additional funds through bank
borrowings and/or equity and/or debt financings would advesely impact the Company's
ability to continue as a going concern after 1998. |
