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Arrhythmia Research Technology Inc. Message Board

  • hrthrt97 hrthrt97 Nov 23, 2012 7:27 AM Flag

    Highlights/Lowlights from the 10-Q

    Couple of initial items are striking in the 10-Q.

    - It appears that even after removing the discontinued operations and the goodwill impairment on the ongoing operations, the company still lost money (close to 300k). Perhaps the corporate G & A will change, but its doubtful.

    - Sensor volume for the Micron unit was down 23.9% from the comparable quarter last year.

    - The discussion around liquidity is telling. I will stand by my statement that a going concern qualification is coming. Here is the relevant text from the 10-Q.

    The Company expects that its current and anticipated financial resources, including the $880,000 available under its credit facility with its bank, are adequate to maintain current and planned operations through December 31, 2013. However, if the Company is not successful in generating sufficient revenues to fund its operations or if the Company is unable to obtain additional debt funding, it may not be able to fund operations beyond December 31, 2013. The Company expects to continue to expand its product offerings and extend the due date of its debt and improve sales with new and existing channels. The Company expects to meet its goals in these areas and generate the additional cash needed to fund operations into 2013 and beyond; however, there can be no assurance that it will be able to do so. The ability of the Company to realize the carrying value of its assets depends on its ability to successfully execute on its long-term business plan.

    Best,

    H

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    • With the current liabilities in play, it is paramount continuing operations improve or at least remain stable. Wonder if some customers are backing away worried that HRT may no longer be around in a year or so? the decline in sensor volume is the single most devastating disclosure in that statement.

    • Taking a look at Wireless:

      WirelessDx net sales were $151,776
      WirelessDx cost of sales was $514,614
      WirelessDx's selling and marketing expense increased to $422,463
      WirelessDx's general and administrative expense increased to $305,986

      That is a loss off of $1M due to wireless operations. If they get rid of this useless thing, it would look brighter, right???

 
HRT
4.3699+0.0099(+0.23%)May 27 2:03 PMEDT