My apologies if this has been discussed here before...
I was just browsing the July 10Q so I could read the forthcoming 10K intelligently. I cam across this statement that was utterly shocking:
"As of July 31, 2007, the Company reassessed the underlying value of its technology due to the development of a new improvement to the Company’s existing data transport technologies. This development, which was completed in August 2007, replaces all of the original design elements that resulted from the Company’s strategic partnership with Adaptive Networks, Inc. (“Adaptive”) and improves certain design elements developed with Hellosoft. In June 2007, the Company filed a provisional patent application protecting technology that replaces certain aspects of prior versions of its CupriaTM semiconductor platform. The Company’s current technology does not utilize previously capitalized licenses and software that were incorporated into prior versions of the Company’s CupriaTM semiconductor platform. As a result of this new technology , the Company reviewed the recoverability of its capitalized technology licenses and software development costs and determined that as of July 31, 2007 the remaining book value of approximately $4.4 million was not recoverable based on estimated future cash flows to be generated from the licenses. Accordingly, the Company has recognized a loss on impairment of approximately $4.4 million in the condensed consolidated statements of operations for the three months and nine months ended July 31, 2007."
What this says is that all of the stuff that they touted as great and wonderful before has now been abandoned.
Here's the basic evolution of things:
Blevins and Shepard develop a new, revolutionary technology that will change the face of broadband as we know it.
This technology is later abandoned when it is discovered that it doesn't work.
The company then teams with Adaptive to develop an all-new revolutionary technology that will change the face of broadband as we know it.
This technology is, once again, later abandoned when it is discovered that it doesn't work.
The company then teams with HelloSoft to develop a new all-new revolutionary technology that will change the face of broadband as we know it.
So, in summary, this company has three times claimed to have done what the rest of the industry couldn't. The first two times, they later revealed that the technologies were bogus and buried their failures in obscure sections of the filings.
See a pattern here?
AI
