Zeev, <<If you look at the latter,you will see that in the quarter ending June 30, the company's cash used in operation was $3,076,703, not the losses of about $1.5 MM nor the operational expenses of $1.7 MM. If you want to estimate what the cash burn rate will be in the current quarter, you'd better look at this $3 MM as a possible indication.>>
I think you're mixing apples and oranges. The $ 3,076,703 Net cash (used in) operating activities was for the SIX MONTHS ENDED JUNE 30, 1999. The 1,701,569 in Total Operating Expenses or the Net (loss) from operations of 1,536,659 are for the THREE MONTHS ENDED JUNE 30, 1999.
You appear to be confusing six months results with three months results.
===========================================================
freeedgar.com
TWELVE MONTHS
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, ENDED
1999 1998 1999 1998 DEC. 31, 1998
------------ ------------ ------------ ------------ -------------
(AUDITED)
Total Revenues $ 164,910 $ 43,226 $ 267,211 $ 137,637 $ 143,472
------------ ------------ ------------ ------------ ------------
Operating Expenses:
Salaries & Contract Services 744,746 2,093,044 1,454,835 2,713,269 4,676,008
Payroll taxes and benefits 118,063 82,465 196,300 160,702 349,547
Rent 83,903 66,321 123,288 154,137 316,383
Telephone 102,841 60,601 241,027 132,840 222,126
Travel and entertainment 82,249 68,552 169,496 85,243 98,641
Advertising and promotion 39,476 -- 56,843 -- 80,868
Depreciation and amortization 55,439 26,909 89,902 26,909 183,307
Other expenses 474,851 722,859 853,162 1,421,236 4,027,993
------------ ------------ ------------ ------------ ------------
Total Operating Expenses 1,701,569 3,120,751 3,184,854 4,694,336 9,954,873
------------ ------------ ------------ ------------ ------------
Net (loss) from operations (1,536,659) (3,077,525) (2,917,643) (4,556,699) (9,811,401)
TWELVE MONTHS
SIX MONTHS ENDED JUNE 30, ENDED
1999 1998 DEC. 31, 1998
------------ ------------ -------------
Cash flows from operating activities: (Audited)
Net (loss) $ (2,975,167) $ (4,632,629) $(10,378,435)
Adjustments to reconcile net (loss) to
net cash (used in) operating activities:
Net gain from sale of affiliated business (325,323)
Decrease (increase) in accounts receivable 8,442 (47,354) 82,118
Decrease (increase) in prepaid marketing expense (809,065)
Depreciation and amortization 89,902 356,629 183,307
Increase in accounts payable and accrued expenses 876,247 697,074 1,000,105
Other 58,261 (213,355) (116,116)
------------ ------------ ------------
Net cash (used in) operating activities: (3,076,703) (3,839,635) (9,229,021)
------------ ------------ ------------
=========================================================== |
