Replies to post #9895 on Mobilepro Corp (fka MOBL)

[zgoldies2]

we are now in the 2nd quarter as well

...the Company will not have the ability to continue as a going concern beyond the second quarter of the current fiscal year without a significant restructuring of the Cornell Capital debt.

[invitro]

it would have been helpful and more balanced to have added the previous paragraph which indicates that the sales of assets haven't fallen through - yet.

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We have received letters of interest regarding the acquisition of the CloseCall, AFN and the Internet service provider businesses (the “Wireline Business”), and several of these firms have engaged in due diligence investigation activities. If the expected amount of cash proceeds from the sale of the Wireline Business is received by us, we expect to be in a position to retire the Cornell Capital debentures plus accrued interest in the first half of fiscal year 2008. In May 2007, we borrowed $1,100,000 from Cornell Capital under a promissory note in order to help bridge our cash flow shortfall until a sale of the Wireline Business is completed.

If the Company fails to eliminate the cash requirements represented by the wireless network business, Davel and ProGames, or if a sale of the Wireline Business is not consummated on favorable terms, the Company will not have the ability to continue as a going concern beyond the second quarter of the current fiscal year without a significant restructuring of the Cornell Capital debt. Although the consolidated financial statements have been prepared on a going-concern basis, the Company recorded substantial impairment charges at March 31, 2007 related to the goodwill of the Internet service provider and wireless networks businesses and certain fixed and intangible assets of Davel and Kite Networks.