Revenue decreased.
Decline result of focus of sales attention.
Sales to significant customers declined.
Cost of goods increased.
Gross margins were a negative.
General and administrative costs increased.
Research and development costs decreased.
Company focused attention on marketing and manufacturing.
The Company lost $26,451,425 and $27,601,961 from operations,
compared with a loss of $5,235,458 and $2,597,105 in the prior year periods.
Net interest expense increased.
For the nine months ended November 30, 1998, the Company lost
$36,797,205 compared to earnings of $1,418,053 in the prior year nine months.
Cash decreased.
Accounts payable and accrued expenses increased.
Receivables decreased.
Cash flows used in operations increased.
Working capital decreased.
Issued Convertible Notes were converted into Common Stock.
Sale of convertible notes.
Convertible Debentures issued convertible into Common Stock, maturity was shortened, the entire principal amount remains outstanding,
agreement-in-principle to restructure the Debentures.
Cash flow generated not sufficient to fund working capital needs.
Necessary to obtain additional working capital from external sources.
Excerpts from: sec.yahoo.com |
