I'm not seeing any government money. Read this from the latest 10Q:
Our cash on hand and working capital will not be sufficient to meet our anticipated cash requirements through 2012. To date, our working capital has been a combination of private investments, private loans, shareholder capital contributions, and advances through promissory notes. We are currently seeking both short term funding to finance current operations as well as significant amounts of long term capital to execute our business plan. We project that to keep operations at our current level, approximately $3.0 million in short term funding will be required over the next three months to cover our anticipated monthly expenses. In order to successfully execute our business plan including the planned development and marketing of our current products, an additional $7.0 million will be required in long term financing.
Our current cash requirements are significant due to planned development and marketing of our current products, and we anticipate generating losses. In order to execute on our business strategy, we will require additional working capital commensurate with the operational needs of planned marketing, development and production efforts. Management anticipates that we will be able to raise sufficient amounts of working capital through debt or equity offerings as may be required to meet short-term obligations. However, changes in operating plans, increased expenses, acquisitions, or other events, may cause the Company to seek additional equity or debt financing in the future. We expect to incur additional marketing, development and production expenses. Accordingly, we expect to continue to use debt and equity financing to fund operations for the foreseeable future as we look to expand our asset base and fund marketing, development and production of the EchoDrive product.
We are pre-revenue and in the developmental stage and therefore we do not internally generate adequate cash flows to support our existing operations. Moreover, the historical and existing capital structure is not adequate to fund our planned growth. We intend to finance our operations by issuing additional common stock, warrants and through bridge financing. There can be no assurance that we will be successful in procuring the financing we are seeking. Future cash flows are subject to a number of variables, including the level of production, economic conditions and maintaining cost controls. There can be no assurance that operations and other capital resources will provide cash in sufficient amounts to maintain planned or future levels of capital expenditures.
To meet future objectives, we will need to meet revenue targets and sell additional equity and debt securities, which could result in dilution to current shareholders. We may also seek additional loans where the incurrence of indebtedness would result in increased debt service obligations and could require the Company to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to the Company, if at all. Any failure by the Company to raise additional funds on terms favorable to the Company, or at all, could limit our ability to expand business operations and could harm our overall business prospects. In addition, we cannot be assured of profitability in the future.
May God have mercy on any investors long in this stock.
Good story (join the crowd of everyone else trying to accomplish the same and some of these firms have big money behind them unlike ECAU) + no money + President with shakey past = STOCK GOING KAPUT!!! JMHO.
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