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Vision-Sciences Inc. Message Board

  • mo_fu_broke mo_fu_broke Jan 29, 2013 11:01 AM Flag

    What do you guys think of these statements from VSCI's just filed 10-Q

    I am starting to get really concerned that the CEO is planning to file for Bankruptcy and pay himself what the company owes him and leave us all remaining shareholders out with nothing!!

    Liquidity and Capital Resources

    We have incurred substantial operating losses since our inception and there can be no assurance that we will ever achieve or sustain a profitable level of operations in the future. We anticipate that we will continue to incur negative cash flows from operations during the remainder of fiscal 2013, driven by continued investment in a direct sales force for the U.S. market, spending for marketing, and general business operations. As of December 31, 2012, we had cash and cash equivalents totaling approximately $1.3 million. We expect that our cash at December 31, 2012, together with the $5 million of capital available under a convertible note dated September 19, 2012 with Lewis C. Pell, our Chairman (see Note 5. Long-Term Debt – Related Party for additional information), should be sufficient to fund our operations through at least December 31, 2013. However, if our performance expectations fall short (including our failure to generate expected levels of sales) or our expenses exceed expectations, we will need to secure additional financing and/or reduce our expenses to continue our operations. Our failure to do so would have a material adverse impact on our prospects and financial condition. There can be no assurance that any contemplated additional financing will be available on terms acceptable to us, if at all. If required, we believe we would be able to reduce our expenses to a sufficient level to continue to operate as a going concern.
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    ..and this..
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    Our officers and directors have the ability to exercise significant control over the Company

    As of December 31, 2012, our officers and directors owned an aggregate of approximately 36% of our outstanding common stock. Under a convertible note dated September 19, 2012, our Chairman, at his option, has the right to convert the unpaid principal balance of $15.0 million into 12,500,000 shares of our common stock. The conversion of this note would increase the aggregate ownership of our officers and directors to approximately 50% of our common stock. As such, our directors and officers exercise significant control over all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions. This concentration of ownership may have the effect of delaying or preventing a change in control of the Company or forcing management to change its operating strategies, which may be to the benefit of management but not in the interest of the stockholders.

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