AcuNetx (fka ANTXQ)

[RMIWA]

Barry,

I am in no way an expert, but the 10Q was not encouraging. The current ratio is currently 0.5 (should be well over 1). Cash is only $92K and won't last much longer. The quarter was improved by sales of CDs ($300K) and shares of stock ($1M). A loan by one of the former owners is 2 months in arrears for interest and 5 months in principle. Sales of Intellinetx have improved a bit, but the mgmt discussion indicates it won't increase dramatically in this quarter and that Hawkeye sales are still small. The company discusses the need for additional capital to continue operations and deploy the Hawkeye. Unless sales pick up or another investor comes in to dilute shareholder equity with a cash infusion, I would say this company is in trouble. Hopefully the uptick today is related to a sales PR. I have had a limit order in at .11 for a few weeks, so I sold 60% of my stake today. I may sell the rest based upon this 10Q. I hope things work out, but there are alot of warning bells in my opinion.

Thanks,

Mat