Artificial Life Inc. (ALIF)

[seeksup]

See below my correspondence with ALIF IR. If anyone here has any way to help my misunderstanding I would appreciate it.


Hello Annie,

I have held ALIF for a few years now and am impressed with their growth and their future plans. Recently, Corporate Finance Partners purchased stock in Artificial Life. Part of their Press Release stated, "The funding gives Artificial Life more financial flexibility to pursue new business opportunities, to finance its receivables and to develop new products."

This statement appears to refer to Artificial Life's perceived A/R problem but there is no indication as to:

1) The real "scope" or seriousness (in their view) of the ballooning A/R's,

2) Any plan to resolve the A/R's.

I have followed closely the press releases and SEC documents from ALIF but have yet to see these two questions addressed by ALIF management. I am concerned because obviously CFP met with ALIF management prior to making their investment and discussed the A/R issue - otherwise I doubt CFP's statement would have included anything regarding the A/R issue.

If CFP is getting this sort of information, I would like to have it as well.

Thank you for any help in this matter-

Dr seeksup



Dear Dr. seeksup,

As you may know, we are legally (RegFD) not able to disclose unpublished information in private communication.

The information regarding the use of our funding was not just disclosed to CFP but was publicly disclosed in our corporate communication on July 7, 2009 as follows:

"As we continue to expand our business, we are pleased to have been able to complete this financing round despite the global financial market conditions. The new funding gives us more financial flexibility to pursue new business opportunities, to finance our receivables and to develop new products. We are currently also in advanced negotiations with additional investors about further investments for the third quarter of 2009," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

Best Regards,
Annie Lau
Investor Relations and Business Development
Artificial Life, Inc. (Los Angeles, Berlin, Hong Kong, Tokyo)
http://www.artificial-life.com
Fax: [phone]
Office: ([phone]



show details 11:50 PM (0 minutes ago)

Annie, Thank you for your quick response and I fully understand everything you wrote below.

I am probably revealing my own lack of knowledge into Finance, but I find it hard to believe that this institution would provide financing against Artificial Life's A/R's without some sort of assurance that they will find a return on their money. The "assurance" is what I am seeking, as all other publicly information does not reveal it. After all, the A/R situation is nothing new and has been getting worse.

If there is any way to help my misunderstanding I would appreciate it. I do, of course, find it encouraging that they would make the investment.

Thanks again Annie-