I am sure glad we are more profitable month to month...Sure need it with the expenses incurred saleing our products. At the end of sep. 30th we had issued a little over 1.2 million shares to duchess for 100,000+ dollars! Hope thats all!!...Tiffer..... We have incurred net losses of $16,014,391 and $6,779,635 for the nine months ended September 30, 2010 and 2009, respectively. At the current level of borrowing, we require cash of $275,000 per year to service our debt. Furthermore, not including debt service, in order to continue operating our business, we use an average of $265,000 in cash per month, or $3.2 million per year. At this rate of cash burn, over the next twelve months, our existing current assets will sustain our business for approximately five months.
In addition to the above cash burn from operations, we will be required to obtain additional financing in order to meet the obligations for installment payments of $621,000 under the Creditor Plan and our obligations under the subordinated secured indebtedness to The RHL Group (which note payable had a balance of $997,703 at September 30, 2010), among other debt obligations. Such obligations are currently due and payable pursuant to the terms of the notes.
To finance our activities, we have relied on the issuance of stock and debt to the RHL Group. At September 30, 2010, we had a line of credit with The RHL Group in the amount of $3 million. Availability under this line of credit at this time is $2.0 million. Furthermore, we may utilize portions of our $10 million standby equity line facility with Dutchess Opportunity (all this info taken from 10Q)
AI
