Steven, where do you get "good revenues" from?
IMO it doesn't look good at all for this organization
As of March 31, 2007, we had cash on hand of $318,494 compared to $592,455 at March 31, 2006. The $273,961 decrease in cash on hand is the result of decreased revenue from operations, which was compounded by a significant increase in legal fees associated with defending the Company against the lawsuit brought by Marvin Teitelbaum and Peter Alexakis throughout 2006. We believe that cash on hand and anticipated revenues from operations will be sufficient to cover our operating costs over the next twelve months. We do not anticipate needing to find other sources of capital at this time. If, however, our revenues are less than anticipated we may need to find other sources of capital to continue operations. Most likely we would seek additional capital in the form of debt and/or equity. While we believe we are capable of raising additional capital, there is no assurance that we will be successful in locating other sources of capital on favorable terms or at all.
Results of Operations
Comparison of the three months ended March 31, 2007 and 2006
Despite a 67% increase in the total number of employee enrollees during three months ended March 2007, total revenues decreased 29% to $404,319. As a result of goodwill gesture, in February 2007, we entered into an agreement with a major customer to absorb the cost of re-enrolling their employees into the HCO program with no additional revenue being generated. Another contributing factor to decreasing revenue is the increasing popularity of our a la carte option. This option allows an employer to enter either our HCO or MPN program at a lower rate and pay a separate cost for other services as needed in the future. We expect that our goodwill gesture in February 2007 was a one-time event. We also anticipate that our a la carte option will continue to be a popular option in the future which could contribute to reductions in revenue in future quarters.
