Labwire Inc (LBWR)

[YankeeAce]

Here is the last few questions I have concerning the most recent financials.

6. Why is Labwire still carrying Credit Card debt? I'm guessing here but the best rate on a corporate card account has got to be around 8% while most are closer to 10%. Wouldn't it make more sense to open a line of credit secured by the company's assets to handle these capital requirements? LOC's run 6-8% easy.

7. Payroll Liabilities increased to almost $20,000. My translation of that is that their employees were not paid. It appears payroll expenses are growing faster then the company's ability to generate cash. That can be trouble unless management keeps this under control. Their next financial will tell the full story.

8. It appears to me that Marketing & Advertising expense moved to Travel & Entertainment. Hopefully this means the company has internalized its sales force. Instead of just paying people to blast out an advertisement this type of business requires a sales force to pound the pavement and convince companies that they need this service and that Labwire is the best company. That means more internal employees making site visits to customers. I compare this to HISC. When the CEO made a trip to the middle east there was a contract announced a few months later. So one could have made some decent money buy purchasing the stock when the CEO was overseas and selling following the announcement (if you are into that kind of swing trading).

I picked up a small starter position today. I think we shall see a base form around $0.10. Until the company is able to prove out its business plan. So keep those contracts coming.