Wednesday, September 14, 2005

The Phantom, Disappearing

From Infinium Lab's latest 10QSB (quarterly report, August 2005):
We have incurred recurring losses from operations since inception. Our loss from operations for the year ended December 31, 2004 was $33,131,286, and our loss from operations for the six-months ended June 30, 2005 was $20,275,775. At June 30, 2005, we had a working capital deficit of $8,781,352 and an accumulated deficit of $56,276,138. In their report on our audited financial statements for the year ended December 31, 2004, our independent auditors expressed substantial doubt about our ability to continue as a going concern.

Our activities to date have been funded by equity and debt investments, $2,603,000 of the debt is in default of which $1,400,000 is collateralized by the Companys assets. We do not have sufficient cash to continue operations for the next 12 months and are in immediate need of additional capital to fund our plan of operation. We presently have no commitments for additional financing and may not be able to obtain such financing. If we are unable to obtain additional financing as and when needed, we will need to scale back and/or reprioritize our planned operations and may be forced to cease operations completely.

An accumulated debt of fifty-six million dollars. Twenty million dollars lost in the last six months. Over two and a half million dollars of debt in default. In twenty-one months, the stock (created by a merger with an existing company on the Exchange so that Infinium's finances wouldn't be scrutinized as they would be with an IPO) has gone from $2.15 to five cents.

I know I predicted this a while back, but I take no credit for it--this had stink all over it from day one. Anyone with a nose knew it was going to happen. There was no way The Phantom was ever going to actually make it to market. I'm shocked that they've lasted this long. The next post I make about Infinium Labs will be when they pull the plug, and I think it will happen before the end of the year.

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