To: StockDung who wrote (3406 ) 3/18/2000 12:41:00 PM From: rrufff Respond to
Oh Mr. Truthseeker, accumulated deficit of $77.1 million. The Company believes that its success will to a large part depend on its ability to increase the number of registered users and customers and to increase sales volume to realize economies of scale. As the Company increases its spending for product development, advertising, customer service, facilities, international expansion and general and administrative expenses, the Company expects to continue to incur significant operating losses on a quarterly and annual basis for the foreseeable future, and the rate at which such losses will be incurred is expected to increase significantly from current levels, resulting in corresponding decreases in working capital, total assets and stockholders' equity. In particular, the Company's operating expenses have increased, and are expected to continue increasing, in 1999 as compared to 1998, primarily due to scheduled increases in the Company's payment obligations to strategic partners and advertising and marketing expenses for the Company's online travel services, resulting in corresponding increases in operating losses and decreases in working capital, total assets and stockholders' equity. See "Risk Factors That May Affect Future ResultsLimited Operating History of Online Business; History of Net Operating Losses; Accumulated Deficit" and "Anticipated Losses and Negative Cash Flow."
