Burris should leave, in favor of "professional management"???
What are they going to pay them with, ball bearings? Have we forgotten so soon this is a company on life support? Let me remind you:
"As of October 31, 1998, the Company had negative net working capital of approximately $1,226,000 compared to negative net working capital of approximately $1,050,000 at July 31, 1997. During the three months ended October 31, 1998, the Company had cash used in operations of $172,212, compared to cash used in operations of approximately $38,000 in the prior year period. The largest uses of cash during the first quarter were for the purchase of prepaid equipment items required for system construction.
Total contract backlog at October 31, 1998 was $1,028,614, down from $2,403,000 for the same period in 1997. Management is actively pursuing several system sales and lease services opportunities which may result in additional sales backlog; however, no assurance can be given regarding any potential sales.
Because of the contract backlog, management believes that the Company may have difficulty meeting its cash requirements through fiscal 1999. The Company's liquidity position will depend upon the outcome of further cash generating activities, such as raising additional debt or equity capital, converting some of its debt into equity capital or preferred stock and/or generating revenues and cash receipts through system sales and scanning services. There is no assurance that the Company can successfully complete any such activity, and the failure to do so could have a material adverse effect on the Company's financial position. Also at October 31, 1998, the Company was in technical default with a local bank with respect to its Export Import Bank of the U.S. ("EXIMBANK") guaranteed line of credit. Management negotiated with the bank to extend the maturity of the loan to March 31, 1999 by assigning certain receivables to provide additional security for the debt. Default was caused by the Company's failure to comply in a timely fashion with the monthly reporting requirements included in the loan agreement. Of the $630,000 originally borrowed, the Company had a remaining balance, including accrued interest, of $138,239.94 as of the December 22, 1998 renewal date..."
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