Property ManagementHomeSeekers Reorganizes, Again
HomeSeekers has announced that it is out of cash, and is reorganizing.
According to an SEC filing dated October 12,2001, "The Company has run out
of cash, was unable to fully-fund its payroll on October 10, 2001, and may have
to consider curtailing or ceasing its operations including the possibility of
filing bankruptcy. In the event outside financing in the form of debt or equity
is not obtained within the next several weeks, the Company may be required to
curtail or cease operations as noted above.
"As discussed elsewhere in this Form 10-K, we have experienced recurring
losses from operations and have an accumulated deficit of approximately $92.6
million at June 30, 2001. In addition, it is imperative that we complete a
significant financing in the near future to fund our operations. Because of
these factors, the report of our independent auditors on our consolidated
financial statements for the year ended June 30, 2001 includes an explanatory
paragraph indicating there is substantial doubt about the Company"s ability to
continue as a going concern. In connection with a pending agreement to sell 5
million shares of the Company"s Series A convertible preferred stock for a
total sales price of $20.0 million over a specified period of time, we are
developing a plan to address these issues and to allow us to continue as a
going concern through the end of fiscal year 2002. See "Liquidity and Capital
Resources." This plan may include obtaining additional debt or equity financing
and is being developed to maximize the revenue potential of our business
acquisitions and current products and services. This plan will include a
reduction of operating expenses to the extent necessary to meet Company
objectives. However, we have only a limited operating history with our existing
business model, have had substantial management turnover and have undertaken a
significant restructuring of our operations. Consequently, there is no
assurance that we will ever achieve or maintain profitability. If we are unable
to obtain additional financing in the near future, or it is not available to us
on acceptable terms, we will be unable to implement our operating plans or meet
our operating obligations. Should this occur, we would likely cease operations.
See "Risk Factors and Cautionary Statement Regarding Forward-Looking
Information."
To view the entire filing: http://biz.yahoo.com/e/011012/hmsk.ob.html