Lets review what the company has said it needed to do one year ago to remain in operation and to become profitable (this is from last years 10k)
Based on current financial projections, we believe the continuation of our Company as a going concern is primarily dependent on our ability to, among other factors:
(i) consummate a suitable financing, or obtain financing from the sale of our assets or lines of business,
Done. Atrinsic shed several assets at the end of last year. They sold various codes and websites to raise $615,000 on Dec. 29th. There was a reason they did this 2 days before the end of the year - to reflect on the 10k. Also sold property in Canada which was applied towards the debt (end of 2k11).
(ii) scale our Kazaa subscriber base to a level where the monthly revenue generated from our subscriber base exceeds subscriber acquisition costs, net of expenses required to operate Kazaa,
Done. Kazxaa was eliminated, so it is now negligable. This will not be reflected in the 10k unfortunately, but the 4th quarter.
(iii) continue to generate revenue from our legacy subscription products without billing or service disruption,
Done. As far as we know, their other subscription platforms remain uninterrupted.
(iv) eliminate or reduce operating and overhead expenditures to a level more in line with our revenue,
Done Atrinsic has gone through multiple rounds of layoffs over the past years, and has shed many of its assets which were unprofitable.
(v) improve utilization of the Kazaa digital music service and improve LTVs of subscribers to that service
N/A - Kazaa no more!
(vi) acquire profitable subscribers to the Kazaa digital music service at cost effective rate
See above
(vii) grow our search marketing agency revenue base through the addition of new customers or expansion of business with existing customers
Done. As we have shown, they have added several new customers (Direct Buy Spy, True Religion, Etc)
, and (viii) expand margins in our search marketing agency and on our affiliate platform.
Unknown. However, they did introduce pay-per-call in September which we do not know how profitable it is. We do not know if they have expanded their margins, however I am inclined to say so.
"While we address these operating matters, we must continue to meet expected near-term obligations, including normal course operating cash requirements and costs associated with developing and operating the Kazaa digital music service, as well as funding overhead and the working capital needs of our other businesses. If we are not able to obtain sufficient funds through a financing, or if we experience adverse outcomes with respect to our operational forecasts, our financial position, results of operations, cash flows and liquidity will continue to be materially adversely affected."
"We continue to evaluate the sale of certain of our assets and businesses. We cannot provide any assurance that we will be successful in finding suitable purchasers for the sale of such assets."
Done. See 8k's
I advise everyone to read last years 10-k. No, its not pretty, but it lays the ground work (above) of what needs to be done to stay afloat. As we have shown, Atrinsic has been doing everything they recognized needed to be done - a step in a positive direction.
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