Value Microcaps Motherboard

[MikeDDKing]

ADL - I was looking at ADL this morning and found this in the 10-Q:

"At November 3, 2008, the Company had cash on hand of approximately $1,043,000 in U.S. bank accounts and additional cash in the accounts of JPI and its subsidiaries of approximately $1,300,000. Cash is being depleted from operations in the U.S. at the rate of approximately $450,000 per month, although JPI and its subsidiaries are cash flow positive and profitable. The foregoing U.S. operations burn rate does not include non-operating extraordinary items, including payments to pursue drug and test kit product licenses. The Company and JPI are working diligently on various financing activities, including negotiating additional equity or debt financing both in the U.S. and in China. There can be no assurance that these financing activities will close or, if closed what the amount or timing thereof will be. Yet, assuming (i) the Company is unable to complete its anticipated financing activities, (ii) JPI does not generate sufficient cash to meet or exceed its cash requirements, (iii) JPI does not repatriate any cash back to U.S. operations, and (iv) no outstanding warrants are exercised, then the amount of cash on hand is expected to be sufficient to meet the Company’s projected operating expenses only through January 2009."

That certainly is one risk with ADL and probably is one reason for the selling. The company did do a PP on 12/9/08 for net proceeds of $947,425. That gives them a little more than 2 months of additional breathing room. Also, the financing was the first tranche. The second closing is scheduled for 12/31/08. The company did not indicate the size of the second closing.

Mike