Debt Resolve warns it’s strapped for cash
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- November
- 20
Debt Resolve Inc. reported today that a cash flow crunch may force the White Plains company to close next year.
“Since the company may not have sufficient cash to fund its operations for the next 12 months, there exists substantial doubt about its ability to continue as a going concern,” said the provider of Internet-based consumer-debt collection services.
Debt Resolve said its c0-chairmen, James D. Burchetta and Charles Brofman, and board member William Mooney advanced $1 million to the company from June to Nov. 16.
Debt Resolve made the disclosure in its third-quarter earnings release. For the three months ending Sept. 30, the company reported a narrower loss, losing $3.33 million, or 41 cents a share, compared to a net loss of $6.5 million, or $1.57 a share, a year ago.
The net loss for the most current quarter includes $354,821 in non-cash stock-based compensation expense and a $27,255 impairment charge related to “non-cash goodwill and intangibles.”
Revenues in the quarter rose more than 1,500 percent to $526,818 from $30,617 last year.
Debt Resolve said its First Performance Corp. subsidiary “continues to strive towards becoming cash flow positive in the first quarter of 2008.”
Debt Resolve went public in November 2006. Its shares have lost about 70 percent of their value since then.
This entry was posted
on Tuesday, November 20th, 2007 at 2:44 pm by David Schepp.
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