EQST'S Liquidity and Capital Resources (from June 2008)
As of June 30, 2008, we had cash of $1,559 and aworking capital deficiency of $767,983. As at June 30, 2008 ouraccumulated deficit was $4,974,265. For the three months ended June 30,2008 our net loss was $133,854 compared to $250,648 during the sameperiod in 2007. This decrease was due mostly to lower consulting,management and professional fees. For the six months ended June 30,2008 our net loss was $387,114 compared to $279,611 for the same periodin 2007. The increase in net loss between these periods was mostly dueto higher consulting and management fees and a loss on restricted cash.
Our loss was funded by proceeds from shareholder loansand sales of our securities. During the six months ended June 30, 2008,we raised $125,000 through financing activities and our cash positiondecreased by $174.
We used net cash of $125,170 in operating activitiesfor the six months ended June 30, 2008 compared to net cash of $50,599in operating activities for the same period in 2007. We did not use anymoney in investing activities for the six months ended June 30, 2008compared $60,500 during the same period in 2007. The effect of exchangerates on cash was a decrease in cash of $4 for the six months endedJune, 2008 compared to no change during six months ended June 30, 2007.
During the six months ended June 30, 2008 our monthlycash requirement was approximately $20,862, compared to approximately$8,433 for the same period in 2007.
SUMMARY:
Cash in the bank: $1,559
Burn rate: $20,000 @ month
Revenues: $0 and no prospects of generating any
Marketing: who knows?
Mr. Vasant loan: $120,000,000 who knows if it ever materialized?Anybody called EQST lately to see what is happening with their various letters of intent? Some of them go back to 2007 with no further updates.
I am assuming that the credit crunch will put any possibility of these speculative ventures using a novel technology on fairly permanent hold.
One question I would ask - are they going to put together a working demonstration model? They did have plans to do that with a recycling plant in BC quite some time ago, but the deal was eventually never consumated for various reasons. But this deal was never replaced by another. Why?
I've got such a tiny value of stock here it's not worth putting out any of my own effort to dig for answers ;-)
I just thought that I'd fish and see if anybody felt like volunteering the answers.