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

To: Gordon Quickstad who wrote (11298)	5/22/1999 6:23:00 PM
From: hcirteg	Read Replies (1) \| Respond to of 27311

Hey all- Check out the YAHOO thread..appartently there is some comapny (Electro fule I think) that is taking orders for Lithium POLYMER batteries. PLEASE check this out and provide comments. TIA- HC

To: Gordon Quickstad who wrote (11298)	5/22/1999 7:19:00 PM
From: Larry Brubaker	Respond to of 27311

Gordon, working capital is current assets minus current liabilities. VLNC had approximately $7.5 million in current assets on December 31, and approximately $10 million of current liabilities. Therefore, working capital was negative $2.5 million. In order for a liability to be considered current, it must be payable within 1 year. Liabilities not payable within a year are long-term. Negative working capital does not mean a company is in default of any obligations, but a company with negative working capital is at greater risk of defaulting on its obligations, simply because it has already spent more than its current assets. Negative working capital does not necessarily mean a company owes more than the liquidation value of the company, because the liquidation value would include the value of non-current assets (plant and equipment).