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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Rob L. who wrote (5761)	11/10/1997 2:57:00 PM
From: Zebra 365	Read Replies (1) \| Respond to of 31646

Why are we talking about raising cash? Good Rob, cut the size of my post in half, also from 10KSB 10/27/97 During the past eighteen months, the Company has assumed debt obligations to three banks in the course of executing its acquisition strategy. According to the terms of these debt agreements, the Company is required to repay one of these obligations by November 30, 1997. This facility is comprised of a revolving line of credit in the amount of $75,000 and a term note in the amount of $404,000. The Company has commenced discussions with the lender regarding a short-term extension of this facility and is reasonably confident that the maturities will be extended. Under the terms of the other two credit facilities, the Company is required to repay the facilities by January 1, 1998. As of June 30, 1997, the Company owed $1,143,000 under these facilities. The Company has continued the process of securing replacement financingfor its short-term debt obligations. The Company plans to consolidate its outstanding debt obligations into one or two larger credit facilities and secure an increase in its revolving credit facility to provide improved capacity to handle the short-term working capital requirements of the larger projects and its anticipated revenue growth. While a firm commitment has not yet been received, the Company has received proposals and is reasonably confident that it will be successful obtaining this financing. If the Company is not successful in refinancing these facilities, its overall liquidity would be negatively impacted and default could result in acceleration of other obligations, including the 9% convertible debentures. (See "Management's discussion of liquidity" below.) Management's discussion of liquidity. The Company has incurred losses for the previous five years and has experienced negative cash flow from operations. As of June 30, 1997, the Company had working capital of $168,000 and has bank debt totaling $1,764,000 maturing within the next six months. The Company is aggressively pursuing new product development (Plant Y2KOne-TM-) and anticipates additional working capital will be required to complete product development and establish volume sales. Raising cash at this point has been well anticipated, There are many people to be hired and trained before they contribute significantly to revenues. Zebra