nerd, I understand the concept of going concern statements.
When you say, "Is a more or less standard statement", you are missing the point completely!
While we both agree that many companies are required to issue these statements, I don't think you appreciate the "details" and the significance of them in these statements.
Let's look at what GlobeTel "was" saying in their filings...
As detailed in the financial statements, we have stock subscriptions receivable for preferred shares that will raise a total of approximately $12.25 million in cash in 2005, primarily in the form of financing provided by Series B preferred shareholders. Of these funds, $10 million is committed to the purchases of equipment (two data switches) for our stored value program. With this funding, as well as the additional funding received to-date in 2005, we will have the existing capital resources necessary to fund our operations and capital requirements as presently planned over the next twelve months. However, if we do not receive the full amount, then we may not have the existing capital resources or credit lines available that are sufficient to fund our operations and capital requirements and therefore we may have to pursue additional funds through the issuance of debt and/or equity instruments.
Can you really "not" see the difference in that statement and what they are "now" saying?
In one they tell us about 12.5 million in funding and even contingency plans if it all doesn't come through...
and the other...
They have no defined source of funding or assurance they will have "anything" in the near future.
nerd these are not merely "standard" statements. They differ enormously! There is a lot to be learned from how a company changes these type statements in their filings!
It is no "small item"!
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