this from the S-8 filed a short while ago-
RISK FACTORS
Before you invest in our common stock, you should be aware that there
are various risks, including those described below. You should consider
carefully these risk factors together with all of the other information included
in this prospectus, including the documents that we incorporate by reference,
before you decide to purchase shares of common stock.
Some of the information in this prospectus may contain forward-looking
statements. Such statements can be identified by the use of forward-looking
terminology such as may, "will," "expect," "believe," "intend," "anticipate,"
"estimate," "continue" or similar words. These statements discuss future
expectations, estimate the happening of future events or our financial condition
or state other "forward-looking" information. When considering such
forward-looking statements, you should keep in mind the risk factors and other
cautionary statements in this prospectus and the documents that we incorporate
by reference. The risk factors noted in this section and other factors noted
throughout this prospectus, including certain risks and uncertainties, could
cause our actual results to differ materially from those contained in any
forward-looking statement.
History of Losses. We have incurred losses since 1992. We incurred a net loss of
approximately $17,954,000 (on revenues of $828,000) for the fiscal year ended
December 31, 1997 and a net loss of approximately $4,652,000 (on revenues of
$4,003,000) for the fiscal year ended December 31, 1996. We incurred a net loss
of approximately $3,518,000 (on revenues of approximately $9,228,000) for the
nine months ended September 30, 1998, as compared to a net loss of approximately
$12,707,000 (on revenues of approximately $453,000) for the nine months ended
September 30, 1997. As a result of continuing losses, we had an accumulated
deficit of approximately $3,518,000 at September 30, 1998. We will continue to
incur operating losses unless we are successful in our efforts to develop our
refinery operations in Lake Charles, Louisiana and/or our oil and gas
exploration and development activities in Kazakstan and Russia.
Going Concern Opinion. In connection with the audit of our financial statements
as of December 31, 1997, Hein + Associates, LLP, our certified public
accountants, issued a report which included an explanatory paragraph relating to
our ability to continue as a "going concern".
Need For Additional Financing. During 1999, we may require additional financing
to supplement anticipated cash flows from our refinery operations in Lake
Charles, Louisiana in order to meet operating and certain other funding
obligations. In the event we are unable to obtain the necessary financing to
meet these obligations, our ability to continue operations at current levels
will be materially and adversely effected. In addition, our oil and gas license
in Kazakhstan could be revoked. We may need to raise additional funds through
public or private financings, including equity financings, with may be dilutive
to stockholders. There can be no assurance that we will be able to raise
additional funds if our capital resources are exhausted, or that funds will be
available on terms attractive to us or at all. |
