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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: add who wrote (8199)	2/11/1999 9:27:00 PM
From: Larry Brubaker	Respond to of 27311

add, Yes, current liabilities mean they are payable within a year. Some liabilities are probably due much sooner than others. VLNC's own statement says they think they've got enough money to last through March. Before Castle Creek's new $7.5 million, VLNC's previous statements said they had enough money to last through December. They were right, but just barely. Without the additional $7.5 million received on December 21, they would have had only about $300,000 of cash at the end of December, against current liabilities of about $10 million. Additionally, the burn rate last quarter increased to about $7 million per quarter. Part of this is attributed to intensified efforts to develop their product. Part of the increased burn rate is also attributed to the loss of support from Delphi. Bottom-line. I would take their word for it that they will need more money by March 31. Maybe Berg will shake loose the $7.5 million remaining on the line of credit?