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Microcap & Penny Stocks : BANY: Core business growth, exciting affiliations! -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (2930)	9/24/1998 1:11:00 PM
From: David L. Wasylenko	Read Replies (2) \| Respond to of 5847

I emailed JSS (J. Scott Sitra) RE: financials: David, I will be more than glad to try and answer that question for you. It is not secret that the audited finanical statements have taken much longer than anyone ever dreamed to get completed. And yes, the audit for 1996 was started in the fall of last year. These financial statements are a lot more complicated, though, than statements that a business owner would compile himself. These are full SEC peer review audits that are quite comprehensive in nature and will enable Banyan to become a fully reporting company with the SEC and allow it to move to a higher exchange as soon as it meets the other qualifications. There have been numerous delays over the past several months, some of them Banyan's fault and some of them the CPA's fault. During tax season and immediately afterwards this year, the CPA put Banyan's audit on hold for several weeks. Banyan did not pressure the CPA on this issue because the Company viewed its negotiations as more important to the viability and longevity of the Company. Banyan also earlier this year put all of its capital resources into building and shipping inventory rather than paying its CPA to move forward. As a result of these delays from both sides, the audit became stale and when the CPA went to "confirm" accounts receivable, accounts payable, trade accounts, etc. from 1996 and 1997 he ran into a brick wall. Some of our past vendors and suppliers were out of business and the others simply did not respond or still have the records. As such, the CPA has been in and out of Banyan's offices over the past two months going over every record, receipt and invoice to manually "confirm" entries. This has been a very painstaking task and Management is aware that it is now in a position where having the audited financials are not merely a luxury, but a necessity. Banyan will begin reporting its quarterly operating results to its shareholders this quarter and expects the third quarter results will be ready by the end of October. The audits for 1996 and 1997 should be going into the peer review process anytime now and will be released as soon as they are returned to Banyan. Let me stress, though, that the audited results are not going to show any surprises. Banyan generated approximately $200-250K in sales during 1997 with a moderate operating loss; revenues for the first six-months of 1998 are expected to be flat with 1997, but the net operating loss is anticipated to be somewhat smaller due to better cost controls and operating efficiences. The third quarter is the first quarter Banyan is expecting to show an increase in sales. Banyan is expecting a more significant increase in sales for the fourth quarter and beyond. I hope this helps answer your questions. Management knows the significance of having the audited statements available. As always, if you have any additional questions, please feel free to contact me. Sincerely, J. Scott Sitra Banyan Corporation Investor Relations sitra.com jscott@sitra.com (512) 453-3817 (512) 453-7553 fax P. O. Box 50404 Austin, Texas 78763