To: Don Hood who wrote (32062 ) 4/12/1999 9:03:00 AM From: roddio Read Replies (1) | Respond to of 33268
Who would buy into this sorry looking issue when even their own statements tell you you what a pathetic piece of trash it is. Potential to lose $$ is all I see. Company warns that every potential disaster can possibly happen to them. If you look hard hard enough you will probably find a warning about the adverse effect on their operations that could occur if a comet struck the Earth on a long weekend!!!! Look at these excerpts from S-3 filing...... We Will Likely Need Additional Capital to Sustain Our Operations We may be required to suspend some or all of our operations if we cannot obtain additional capital when needed. It is possible that sources of capital, such as investors, lenders or strategic partners, may perceive our recent history of losses, current financial condition, or lack of significant Be There! product sales as too great a risk to bear. As a result, we may not be able to obtain additional capital on favorable terms, if at all. Further, if we issue equity securities, shareholders may experience additional dilution or the new equity securities may have rights and preferences senior to the common stock. Assuming continuing negative cash flows from operations at the same rate as negative cash flows in the last four fiscal quarters, we expect our limited existing cash to last about six to nine months. Even if our sales grow, we could require additional capital to hire additional personnel and increase inventory levels. We will therefore likely require more capital in the near future. We can not predict the timing and amount of our future capital requirements. We Have a History of Operating Losses and Expect to Have Continued Losses OR, how about this ? Sales setup pretty weak !! Our Business Could Suffer If We Lose Indirect Sales Channel Partners The loss of our relationships with independent distributors, resellers, and other marketing partners could materially adversely affect our business. Our business strategy relies heavily on marketing and sales efforts of third parties. We have little experience in marketing Be There! through indirect channels and we have not generated significant revenue to date from these channels. Our existing distributors, resellers and other marketing partners are not contractually committed to continue to purchase our products and therefore could discontinue carrying our products at any time in favor of a competitor's products or for any other reason. The loss of any of our major distributors or resellers, or a reduction in their commitment of resources to our products, would likely have an adverse effect on our business. OR this........ The Be There! products have not yet been and may never be widely accepted in the market. We can not assure you that we will establish a market for our Be There! products or establish our credibility in such market. The market may elect to embrace alternative products or service solutions to the need for communication between the corporate headquarters and workers who are away from the headquarters. The potential market for our Be There! products may be affected by various factors, including changes in market trends and market needs and changes in technology. The actual rate of growth and size of the market may not reach expected levels. Our business will be adversely affected if the market does not develop or we are not able to penetrate it as we hope. Rapid Technological Change Poses Risks to Our Business The rapid pace of technological change may prevent us from developing and marketing new products, enhancing our existing products, or responding effectively to emerging industry standards or new product introductions by others. Our future success will be largely dependent on our ability to enhance our existing products and to develop and introduce successful new products. The market for our products is characterized by rapidly changing technology, emerging industry standards, product proliferation and short product life cycles. As the technical complexity of new products increases, it may become increasingly difficult to introduce new products quickly and according to schedule. Delays in developing or shipping new or enhanced products could adversely affect our operating results. My, it looks as if they may be concerned that their patents may not be enough to protect their technologies! We Face Potential Costly and Disruptive Intellectual Property Disputes We may be involved in intellectual property litigation which could adversely affect our intellectual property rights, could be costly and could divert management's attention away from the business. It sounds like they are not sure if the market for Be There wil Be There!!! The Be There! products have not yet been and may never be widely accepted in the market. We can not assure you that we will establish a market for our Be There! products or establish our credibility in such market. The market may elect to embrace alternative products or service solutions to the need for communication between the corporate headquarters and workers who are away from the headquarters. The potential market for our Be There! products may be affected by various factors, including changes in market trends and market needs and changes in technology. The actual rate of growth and size of the market may not reach expected levels. Our business will be adversely affected if the market does not develop or we are not able to penetrate it as we hope. Rapid Technological Change Poses Risks to Our Business The rapid pace of technological change may prevent us from developing and marketing new products, enhancing our existing products, or responding effectively to emerging industry standards or new product introductions by others. Our future success will be largely dependent on our ability to enhance our existing products and to develop and introduce successful new products. The market for our products is characterized by rapidly changing technology, emerging industry standards, product proliferation and short product life cycles. As the technical complexity of new products increases, it may become increasingly difficult to introduce new products quickly and according to schedule. Delays in developing or shipping new or enhanced products could adversely affect our operating results. Wow !! They are also concerned with legal problems!!!! We Face Potential Costly and Disruptive Intellectual Property Disputes We are Currently Involved in A Patent Infringement Lawsuit And they feel they may have component problems!! In addition, we may also have trouble controlling the cost, quality and reliability of the components we use to manufacture our products. Gadzooks!!! They warn of possibility of class action suit over stock price fluctuations!!! Our Business May Be Adversely Affected by Class Action Litigation Due to Stock Price Volatility The filing of securities class action litigation against companies often occurs following periods of volatility in the market price of a company's securities. We have in the past and may in the future be a target of such litigation. That's enough to tell it's a poor place to put your hard - earned cash!!