Composite Technology Corporation (fka CPTQE)

[nanuck370]

goldrusher, I use to own this stock but I sold it. Here's the reason why I sold it. I found this out after I bought this stock. This company because of this could file for Chapter 7 any day.


Our financial statements include a going concern opinion from our auditors acknowledging that during the year ended September 30, 2004, the Company incurred a net loss of $14,323,596 and had negative cash flows from operations of $8,945,903; and in addition that the Company had an accumulated deficit of $26,075,079 at September 30, 2004. These losses and negative cash flows are the result of Company undergoing its product development phase during its start-up period. During start up a product development company must rely on the promise of future revenues (if the product under development gains acceptance) to secure finance from the capital markets so that it can complete the development of its products. During this phase, there is no guarantee that the product will be completed, accepted or provide a marketable advantage and therefore no guarantee that the development will ever be profitable. The start up company's ability to become a going concern is dependent upon its ability to emerge from its development phase with a business that can generate profit form operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.