Artificial Life Inc. (ALIF)

[SSKILLZ1]

Mikes97707, Now I think ALIF.OB has some potential, but I do have some concerns, Maybe you have some good answers.

1) Just and Observation. Three customers Equal 97% of revs, in fact one customer equals 51% and two customer equal 79% My question is does that concern you?

2) Cash Flows Were extremely negative. In fact they burned through roughly half their cash in three months. Are you Concerned that the extra cash they received is needed to fund operations rather then acquisition?

3) Noticed a huge and I do mean Huge rise in prepaid expenses. Which obviously adversely affected cash flows. Do you think that trend continues. or is this just a one quarter wonder in your best estimation?

Thanks in advance for your response.