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To: jtech who wrote (6677)	2/8/1999 2:11:00 AM
From: Berney	Read Replies (1) \| Respond to of 27722

Jeff, Time to put up! Unfortunately, I did not listen to or do I have access to the vcall. So, I must simply rely on the representations of management (i.e. the financial statements) for the period ending 12/31/98. Therein, it is stated: "As previously disclosed, on May 1, 1998 the Company issued 1,523,810 shares of convertible preferred stock with warrants attached. As of December 31, 1998, the holders converted 1,516,191 shares into 7,580,955 shares of common stock, leaving 7,619 preferred shares remaining. In addition, by that date, holders of warrants had exercised their rights to purchase an additional 6,030,158 common shares which provided the Company with $20,827,033 of additional cash and equity. As of December 31, 1998, the total shareholders' equity in the Company is $39,984,401." newsalert.com Now, I'm but a lowly accountant (and admit to having some difficulty with the numbers), but it appears that of the roughly 7.6M in convertible shares and 7.6M in related warrants, all but 38K of the convertible shares and 1.5M of the related warrants were exercised prior to 12/31/98. One might even assume that some of this remaining balance has been exercised in 1999. So, the dillution has taken place, and those of us bench warmers that have been around a while, felt it in December. The point here being that the selling pressure from these additional shares has already been felt. Now, what is your point? As to the restatement, management was very forthright in the 10-Q filed for 9/30/98. They indicated that there might be some accounting issues presented from these convertible preferred shares. In the notes to the 12/31/98, the adjustments were discussed (see cite above). Now, what is your point? Yes, some of actually do some DD when we buy stock in a company. Yes, the balance sheet and income statement for NAVR are somewhat suspect. Show me an internet company that is not! Here, we got a real company with real income that's been around a while. They seem to be finding a niche in internet land and some of us actually believe this medium might work. Now, what's your point? Berney