Thursday, November 26, 2009

"Still Going Strong!" Carl Freer Says After Having Burnt $35M In 9 Months

GetFugu, Carl Freer's new AR-venture (Augmented Reality) seems to be heading for bankruptcy, and that soon. The company has $50,000 in cash and is burning $500,000 - 600,00 per month, according to the company's 10Q statement to the SEC from November 23. Still, Carl Freer insists that it's just a matter of being a start-up and that the company is "still going strong!"

Here is a snapshot from the report:
“We incurred losses from operations of $35,272,071 for the nine months ending September 30, 2009 and had an accumulated deficit of $35,320,321 as of September 30, 2009. We had cash totaling $681,607 as of September 30, 2009. As a result of our liquidity position, we have delayed payment of accounts payable and accrued expenses. Unless we obtain additional capital, loans or sell or license assets, we may be required to seek to reorganize our business or discontinue operations and liquidate our assets. There can be no assurance that we will be able to secure sufficient financing on terms acceptable to us. If additional funds are raised through the issuance of equity securities, the percentage ownership of our current stockholders is likely to or will be reduced."
"The accompanying financial statements have been prepared on the basis that we will continue as a going concern. We have financed our operations since inception primarily through the sale of shares of our stock and convertible notes. We have incurred significant operating losses and negative cash flows from operating activities since our inception. As of September 30, 2009 and the date of filing this report, these conditions raised substantial doubt as to our ability to continue as a going concern.    
We will need to immediately raise additional capital in order to avoid curtailing or substantially reducing operations.”
We asked Carl Freer for a comment. Is GetFugu heading for bankruptcy? Here is his answer:
"nope. But it is a start-up
Still going strong!"
 Hans Sandberg

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