Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rjm2 who wrote (13502)	12/28/2001 7:48:41 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 78536

rjm2, if you take the fourth quarter operating loss and adjust it for non cash charges and add in the interest income, the net burn approximated $3.5 million. I think that it is going to take a bit of time for the company to complete its cleanup and sell off the shell. As of September 30, SOFN was liable for future minimum lease payments of $10.7 million and had the following outstanding litigation: freeedgar.com Legal Proceedings On September 26, 2001, Lucent Technologies Inc. ("Lucent") brought action against the Company, alleging that the Company breached a contract by failing to purchase Lucent's shares in Freewire Networks, Inc. and claiming damages of approximately $3.5 million, which may be subject to increase over time. The Company continues to believe that Lucent's claims are without merit and will be contested vigorously. On November 9, 2001, Nokia, Inc. ("Nokia") commenced an action in San Francisco Superior Court against the Company and Aerzone alleging breach of contract arising out of the Aerzone's proposed operations in certain airports. Nokia seeks approximately $2.1 million in damages. The Company believes that Nokia's claims are without merit and will be contested vigorously. The Company is also involved in other legal proceedings and claims, which arise in the ordinary course of its continuing and discontinued businesses. The Company believes the results of the above noted legal proceedings, other pending legal proceedings and claims are not expected to have a material adverse effect on its results of operations, financial condition or cash flows.