The 10k was filed, and it says there was no revenue in 1997. Take a
look at the following excerpts, and then take a guess why the co.
didn't bother to announce anything on the newswires:
To date, the Company has had no revenues to support its operations. Although the
Company generated limited sales to certain of its distributors, revenue and
related gross profit recognition on these initial sales was deferred in fiscal
1997 until the Company determines its products have been accepted by the
end-users (See Notes 1 and 2 to the Company's Financial Statements).
During 1997, the Company and its distributors demonstrated MAGICOM(R) 2000 units
in various business and governmental organizations to measure their performance
and marketability. As a result of this evaluation, a number of feature
enhancements were requested by the Company's distributors and it was necessary
to limit production efforts until the changes were implemented by the end of
1997. See "1997 Developments" and "Production" above. Units that previously had
been acquired by distributors were updated by the Company, and the distributors
were then able to proceed with their marketing efforts in accordance with the
terms of their agreements with the Company. As a result of adding new
capabilities to the product, however, the Company supplied or sold to its
distributors only a limited quantity of assembled MAGICOM(R) 2000 units for
marketing purposes during 1997.
(3) Investment in Joint Venture:
----------------------------
The Company has contributed to SCE $1,225,000 in cash, and technology that has
been valued for purposes of the Joint Venture at $700,000. SCE does not reflect
the $700,000 in technology as an asset or equity investment in the condensed
financial statements presented below. The other parties have contributed cash
aggregating $1,575,000. The Company has reflected its investment in SCE under
the equity method of accounting (See Note 2) and will recognize losses in SCE to
the extent of its cash investment.
Condensed financial information for SCE at October 31, 1997 and 1996 and for the
three years ended October 31, 1997, is as follows:
Condensed Balance Sheets 1997 1996
------------------------ ---- ----
Cash $ 135,890 $ 726,640
Inventories 4,830,461 240,823
Other current assets 31,988 25,586
Land occupancy rights, net of amortization, fixed assets,
net of depreciation and other non-current assets 2,197,169 1,792,538
------------- -------------
Total Assets $ 7,195,508 $ 2,785,587
============= =============
Short term loans $ 500,012 $ -
Accounts payable and accrued liabilities 504,269 47,387
Due to CopyTele, Inc. 4,303,652 240,823
Capital 1,887,575 2,497,377
------------- -------------
Total Liabilities and Capital $ 7,195,508 $ 2,785,587
============= =============
Condensed Statements of Operations 1997 1996 1995
---------------------------------- ---- ---- ----
Net Sales $ - $ - $ -
Operating (Loss) (599,299) (289,447) (35,234)
Interest Income (Expense) (10,503) 19,211 2,847
-------------- ------------- -------------
Net (Loss) $ (609,802) $ (270,236) $ (32,387)
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