|MDTV has filed its 10-KSB.|
The company discloses that its cash resources will be depleted prior to January 31, 2001:
"Future Capital Requirements. This is a capital-intensive business. We will require additional capital to fund deployment of satellite TV and high-speed Internet services and to continue our operations in fiscal 2001. We anticipate that our cash resources will be depleted on or before January 31, 2001. Accordingly, we have retained an investment-banking firm to assist with raising additional capital and the possible disposition of certain assets. There is no assurance that the Company will be successful in any of these initiatives. We have reduced our staff and continue to maintain tight control over deployment and expenditures while pursuing alternatives to raise the additional capital we will require in order to continue operations in the future."
Any financing would probably be highly dilutive. Additionally, MDTV's auditors have given them a "going concern" opinion:
"The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company is a development stage enterprise engaged in providing delivery of satellite television programming, home entertainment and information technology to residents of multi-dwelling units. As discussed in Note 2 to the financial statements, the Company's recurring losses from operations and limited financial resources raise substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of these uncertainties."
/s/ DELOITTE & TOUCHE LLP
Note 2 from the financial statements:
"2. Continuing Operations
The financial statements have been prepared on the going concern basis of accounting which contemplates realization of assets and liquidation of liabilities in the ordinary course of business. During the year ended September 30, 2000, the Company recorded a net loss of $11,858,546 and used net cash in operations of $6,339,555. At September 30, 2000, the Company has working capital of $2,823,194, an accumulated deficit of $14,482,051 and does not expect to generate profitable operations until fiscal 2002 or later.
The Company's funding of its continuing operating expenses, working capital needs and capital commitments is dependent upon its ability to raise additional financing. The Company is currently pursuing opportunities to raise financing through private placements of both equity and debt securities and has engaged an investment banker to assist it in raising financing through a convertible security offering, however there is no assurance that the company will be successful in these discussions.
The Company's ability to continue as a going concern is dependent on its ability to raise additional funds as required and ultimately to achieve profitable operations. The financial statements do not include any adjustments that might result from the outcome of the above noted uncertainties. Adjustments, if any, would affect the carrying value and classification of assets and liabilities and the amount of net loss and accumulated deficit."