Vlispxpert's Underground

[DCschmoeka]

HYTT Caution! Devastating 10-Q Filing!

Key Statements:

BACKGROUND

(...)

The Company's inability to raise additional financing has resulted in a delayed execution of the new plan and has also caused the Company's obligations to increase. Due to insufficient cash generated from operations, the Company presently does not have cash available to pay its accounts payable and other liabilities. Obligations are being met on a month-to-month basis as cash becomes available. There can be no assurances that the Company's present cash flow will be sufficient to meet current and future obligations.

The Company's limited liquidity has also had a detrimental effect on the Company's sales efforts during the three and nine months ended November 30, 2003. Furthermore, because the Company has experienced a significant deficit in working capital, the Company announced store closures during the past quarter to reduce its fixed overhead.





LIQUIDITY AND CAPITAL RESOURCES

(...)

We have not received any proceeds under the $10,000,000 equity line of funding for the purpose of making acquisitions that we previously announced on December 3, 2003. Management now believes it is unlikely that this particular funding will proceed.

Funds raised through future equity financing will likely be dilutive to our current shareholders. The incurrence of indebtedness would result in an increase in our fixed obligations and could result in borrowing covenants that would restrict our operations. There can be no assurance that financing will be available in sufficient amounts or on terms acceptable to us, if at all. If financing is not available when required or is not available on acceptable terms, we may be unable to launch our new plan. In addition, we may be unable to
take advantage of business opportunities or respond to competitive pressures. Any of these events could have a material and adverse effect on our business, results of operations and financial condition. Lack of additional funds will materially affect our business and may cause us to cease operations. Consequently, shareholders could incur a loss of their entire investment in the Company.

Source: 10QSB from 1/20/2004
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D04%2D000467%2Etxt&FilePath....


Hope nobody is in this POS...... OUCH!