- Such jemand ein Investment zweck Altersabsicherung? ich hätte da etwas!:-)) - Otto_Ludwig_Piffel, 14.11.2003, 10:47
- Re: Investment zwecks Performance-Absicherung? Ich hätte da auch etwas!:-)) - Ecki1, 14.11.2003, 10:58
- Man sieht! Mit Schei**e lässt sich halt doch Geld machen! (owT) - Otto_Ludwig_Piffel, 14.11.2003, 11:01
- Re: Was, schon geordert? Der Mann denkt mit:-)) (owT) - Ecki1, 14.11.2003, 11:18
- Re: Investment zwecks Performance-Absicherung? Ich hätte da auch etwas!:-)) - eroland, 14.11.2003, 15:44
- Re: Investment zwecks Performance-Absicherung? Ich hätte da auch etwas!:-)) - Ecki1, 14.11.2003, 16:36
- Sehr schlechte Empfehlung & eine Bitte an alle - Prosciutto, 26.11.2003, 00:59
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - Turon, 26.11.2003, 01:14
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - - Elli -, 26.11.2003, 01:18
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - Turon, 26.11.2003, 01:27
- Re: Heulende Sirenen auf den Daechern sind immer Wurzeln allen Uebels - Tassie Devil, 26.11.2003, 06:11
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - Turon, 26.11.2003, 01:27
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - - Elli -, 26.11.2003, 01:18
- Re: Sehr schlechte Interpretation - Ecki1, 26.11.2003, 09:22
- Re: Sehr schlechte Empfehlung & eine Bitte an alle - Turon, 26.11.2003, 01:14
- Man sieht! Mit Schei**e lässt sich halt doch Geld machen! (owT) - Otto_Ludwig_Piffel, 14.11.2003, 11:01
- Re: Investment zwecks Performance-Absicherung? Ich hätte da auch etwas!:-)) - Ecki1, 14.11.2003, 10:58
Re: Sehr schlechte Interpretation
-->Auf jeden Fall gings seit deinem Hinweis auf diese Aktie (eine Empfehlung wars nicht) stetig runter.
Mehr als ein Hinweis war es tatsächlich nicht. Sonst hätte ich geschrieben:"Unbedingt direkt jetzt kaufen, mittelfristiges Korrekturziel erreicht"
Es wäre gut, wenn jeder, der auf eine Aktie hinweist, über eine Aktie informiert, Tipps gibt oder diese sogar empfiehlt, zum Erstellzeitpunkt des Beitrages den momentanen Kurs hinschreibt, damit später die Veränderung (Performance) festgestellt werden kann.
Was meinst Du, warum ich den Chart reinkopiert habe? Das Erstellungsdatum meines Beitrages steht in der Beitragsüberschrift. Alle Informationen sind also vorhanden. Ich bitte um Entschuldigung, dass meine knappe Zeit nicht ausreicht, um ausführlichere Gratis-Publikationen zu schreiben. Aus dem gleichen Grund ist es mir nicht möglich, den Forumslesern die Mühe des eigenständigen Denkens abzunehmen.
Den Zeithorizont für Veridien sehe ich bei ca. 3 - 6 Monaten. Hätte ich auch noch schreiben müssen, dass es sich nicht um eine Daytrading-Empfehlung mit Sofort-Gewinnchance handelt?
Gruss!Ecki
<span class=ygtb>
Form
10QSB for
VERIDIEN CORP
</span><hr size=1 noshade>
14-Nov-2003
<big>Quarterly Report</big>
<center> Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
of Operations
</center>
Third Quarter - September 30, 2003 Compared with September 30, 2002, and
Nine-Months Ended September 30, 2003 Compared with September 30, 2002
The following discussion and analysis provide information that we believe is
relevant to an assessment and understanding of the results of operations and
financial condition as of September 30, 2003 for the three months and nine
months ended September 30, 2003 and September 30, 2002, respectively. This
discussion should be read in conjunction with the Consolidated Financial
Statements and the Notes thereto included elsewhere in this Report. This Report
also contains certain forward-looking statements and information. This
cautionary statement should be read as being applicable to all related
forward-looking statements wherever they may appear. Our actual future results
could differ materially from those discussed herein.
Overview
We are a Health Care company incorporated in Delaware focusing on infection
control and other Healthy Lifestyle products. The Company has developed patented
and unique products including Surface Disinfectants, Antiseptic Hand Cleansers,
Instrument Presoak and SUN PROTECTION PRODUCTS.
The flagship product, VIRAHOL® Hospital Disinfectant/Cleaner & Instrument
Presoak, is now being marketed as VIRAGUARD® Hospital Disinfectant/Cleaner &
Instrument Presoak. VIRAGUARD® Hospital Disinfectant/Cleaner & Instrument
Presoak and VIRAGUARD® Hospital Surface Disinfectant Towelette are EPA
registered disinfectants designed for effective disinfecting, cleaning and
deodorizing of hard, inanimate nonporous surfaces. VIRAGUARD® Antiseptic Hand
Gel and VIRAGUARD® Antimicrobial Hand Wipes, which are regulated by the FDA and
utilize Veridien's patented formulation, are effective against germs when soap
and water hand washing is not possible.
Recent product line extensions have included (1) the SunSwipe™ product line
(sunscreen impregnated towelettes in SPF 15, SPF 30, SPF 45, Baby 45 and
after-tanning: all in a towelettes product delivery configuration); and (2)
BugSwipe™ (an insect repellant in the towelettes product delivery
configuration).
During 2002 and early 2003, we have continued to focus our sales efforts on our
Disinfectant products. We have expanded our product line to include Viraguard®
Toilet Seat Wipes, which are available for use in restrooms in hotels,
restaurants, airports and other public places as well as in hospitals and
physicians' offices, and other places where disinfection is critical to
controlling the spread of disease carrying organisms.
To spearhead expansion of our Dental Markets, beginning December 1, 2002,
Veridien launched a national sales force of specialized dental representatives
to target dental supply and distribution companies.
During the third quarter 2003 we signed a supply contract with the American Red
Cross, wherein they contracted for the following products: Viraguard® Hospital
Hard Surface Disinfectant Cleaner and Instrument Presoak, Viraguard® Antiseptic
Hand Spray, Viraguard® Hospital Surface Disinfectant Towelettes and Viraguard®
Antiseptic Hand Wipes. Our patented Disinfectants and Wipes may be used by the
Red Cross to meet regulatory requirements concerning the type of hard surface
disinfectants used in Red Cross Biomedical Services facilities across America.
Deliveries to the Red Cross are expected to commence in the fourth quarter 2003.
Table of Contents
We are aggressively continuing to pursue possible strategic alliances with a
number of major corporations to further strengthen our Company. We entered into
a five (5) year Distribution Agreement with E.I. DuPont de Nemours and Company
for all Viraguard® products in the United States of America for specific market
segments. The Agreement includes certain exclusivity rights for the Emergency
Services and Industrial markets. The products concerned are Viraguard® Hard
Surface Disinfectant Towelettes, Viraguard® Antiseptic Hand Wipes, Viraguard®
Disinfectant solution in one gallon, 16 ounce and 2 ounce formats all of which
are being produced for DuPont under their brand label. Deliveries commenced in
February 2003.
We have adopted a new approach to marketing SunSwipe™ and BugSwipe™ products for
2003 and onward. We are developing Master Distributor Agreements with companies
who have strong market penetration in specific areas. These include Emergency
Services, Healthcare, Retail Mass Merchandise, Sporting Goods, Supermarkets,
Convenience Stores, Industrial and Institutional sales channels. Master
Distribution agreements allow us to take advantage of the Distributors'
extensive abilities to place products in these markets.
During 2002, we entered into a global distribution agreement with DuPont to
market Veridien's line of sunscreen towelettes. DuPont has commenced marketing
Veridien's towelettes and sales of these products in the Emergency Services and
Industrial markets. Deliveries commenced in April 2003.
The Company has incurred losses since its incorporation. At September 30, 2003,
the Company had an accumulated deficit of $34,576,104. The Company has financed
its ongoing business activities through a combination of sales, equity
financing, and debt.
Table of Contents
Results of Operations
Third Quarter ended September 30, 2003 vs. Third Quarter ended September 30,
<PRE> Third Quarter Percentage of
September 30, Net Revenue
2003 2002 2003 2002
Net Sales $ 406,192 $ 121,949 100 % 100 %
Cost of Goods Sold 186,038 84,513 46 % 69 %
Gross Profit 220,154 37,436 54 % 31 %
</PRE>
<PRE> Operating Expenses:
General, Selling & Administrative 346,542 264,640 85 % 217 %
Research & Development 26,014 27,629 6 % 23 %
</PRE>
<PRE> Income (Loss) from Operations (152,402 ) (254,833 ) (38 )% (209 )%
</PRE>
<PRE> Other Income (Expense) Net 278,536 199,151 69 % 163 %
</PRE>
<PRE> Net Income (Loss) Before Taxes 126,134 (55,682 ) 31 % (46 )%
Income Taxes -0 - -0 - 0 % 0 %
Net Income (Loss) 126,134 $ (55,682 ) 31 % (46 )%
</PRE>
Third Quarter - September 30, 2003 Compared with September 30, 2002
Consolidated gross revenues for third quarter 2003 increased by $162,092, or
40%, to $564,151 compared with $402,059 in third quarter 2002.
• Gross revenue from product sales increased for third quarter 2003 by
$284,243 or 233%, to $406,192 compared with $121,949 in third quarter 2002.
<PRE> We continue active promotion of our product line through trade-show
presentations and direct calls on both existing and potential customers. Our
goal is to continue to expand our product lines and we anticipate new
products, which are scheduled with various releases next year, will generate
new revenue in next and future years. In addition, we continue to pursue
strategic alliances with other corporations that have existing distribution
networks. Our goal for these alliances is to create immediate distribution
and fulfillment avenues for our products, while focusing on our capital
resources.
</PRE>
• Interest income for third quarter 2003 decreased by $124, or 85% to $22
compared with $146 in third quarter 2002. The decrease in interest income is
<PRE> due primarily to a decreased daily cash balance earning interest.
</PRE>
• Additionally, other income for third quarter 2003 decreased by $122,027, or
44% to $157,937 compared with $279,964 in third quarter 2002. The unrealized
gain in marketable securities for third quarter 2003 recognizes an increase
of $125,560 and $256,000 in the value of the marketable securities held by
the Company for the quarter ended September 30, 2003 and 2002, respectively.
The Company recognized realized gains of $32,377 and $23,964 on the sale of
<PRE> marketable securities for the quarter ended September 30 2003 and 2002,
respectively.
</PRE>
Table of Contents
Consolidated gross expenses for third quarter 2003 decreased by $19,724, or 4%
to $438,017 compared with $457,741 in third quarter 2002.
• The cost of goods sold for third quarter 2003 increased by $101,525, or 120%
<PRE> to $186,038 compared with $84,513 in third quarter 2002. There was a
decrease in the cost of goods ratio as a percentage of sales to 46% in third
quarter 2003 compared to 69% in third quarter 2002. The increase in the cost
of sales resulted primarily of a combination of increased sales at 233% over
the same period of 2002 offset by a change in product mix. The Company is
continuing to work towards decreasing the cost of goods ratio as a
percentage by improving the product mix with higher margins.
</PRE>
• General, selling, and administrative expenses for third quarter 2003
<PRE> increased by $81,902, or 31% to $346,542 compared with $264,640 in third
quarter 2002. Increases that affected general and administrative expenses
were associated with professional legal, consulting and accounting fees for
third quarter 2003 that increased by 10% to $83,018 compared with $75,596 in
third quarter 2002. Increases in general and administrative costs were
associated with public company expenses for third quarter 2003 the increase
in this category increased by 180% to $4,719 compared with $1,685 in third
quarter 2002. Additionally, selling expenses increased for third quarter
2003 by 17% to $103,663 compared with $88,651 in third quarter 2002.
Decreases that affected general and administrative costs were associated
with administrative wages which decreased in third quarter 2003 by 48% to
$21,979 compared with $42,312 in third quarter 2002. This decrease is
attributable to the reduction in staff on payroll with the functions now
being handled by personnel on consulting contracts.
</PRE>
• Research and development for third quarter 2003 decreased $1,615, or 6% to
<PRE> $26,014 compared with $27,629 in third quarter 2002. The decrease was due
primarily to the use of outside services for registrations instead of
internal staffing. The Company continues to do additional research on the
focus of broadening the range of claims we can assert on our existing
products and on testing new products for commercialization.
</PRE>
• Interest expense for third quarter 2003 decreased by $201,536 or 249% to a
positive $120,577 compared with negative $80,959 in third quarter 2002. The
decrease in interest expense was due primarily to negotiation with certain
<PRE> expired Convertible Debenture holders to waive accrued interest in the
amount of $206,537 in exchange for closer to market conversion rates for
their debt instruments. Interest continues to accrue on other various debts.
</PRE>
• Operating losses decreased to $152,402 in third quarter 2003 from $254,833
in third quarter 2002. This represented a 40% decrease in operating losses.
Table of Contents
Nine Months ended September 30, 2003 vs. Nine Months ended September 30, 2002
<PRE> Nine Months ended Percentage of
September 30, Net Revenue
2003 2002 2003 2002
Net Sales $ 1,300,669 $ 689,104 100 % 100 %
Cost of Goods Sold 710,068 402,274 55 % 58 %
Gross Profit 590,601 286,830 45 % 42 %
</PRE>
<PRE> Operating Expenses:
General, Selling & Administrative 844,186 964,259 65 % 140 %
Research & Development 73,546 107,032 6 % 16 %
</PRE>
<PRE> Income (Loss) from Operations (327,131 ) (784,461 ) (25 )% (114 )%
</PRE>
<PRE> Other Income (Expense) Net (19,652 ) 168,259 (2 )% 24 %
</PRE>
<PRE> Net income (Loss) Before Taxes (346,783 ) (616,202 ) (27 )% (89 )%
Income Taxes -0- -0- 0 % 0 %
Net income (Loss) $ (346,783 ) $ (616,202 ) (27 )% (89 )%
</PRE>
Nine months ended September 30, 2003 Compared with Nine Months ended September
30, 2002
Consolidated gross revenues for the nine months ended September 30, 2003
increased by $263,948, or 24% to $1,358,413, compared with $1,094,465 during the
same period of 2002.
• Gross revenue from product sales increased for the nine months ended
September 30, 2003 by $611,565, or 89% to $1,300,669 compared with $689,104
in 2002. We continue active promotion of our product line through trade-show
presentations and direct calls on both existing and potential customers. Our
<PRE> goal is to continue to expand our product lines and we anticipate new
products, which are scheduled with various releases next year, will generate
new revenue in next and future years. In addition, we continue to pursue
strategic alliances with other corporations that have existing distribution
networks. Our goal for these alliances is to create immediate distribution
and fulfillment avenues for our products, while focusing on our capital
resources.
</PRE>
• Interest income for the nine months ended September 2003 decreased by $40,
<PRE> or 18% to $187 compared with $227 during the same period of 2002. The
decrease in interest income is due to a decreased daily cash balance earning
interest.
</PRE>
• Other income for the nine months ended September 30, 2003 decreased by
$347,577 or 86% to $57,557 compared with $405,134 during the same period of
<PRE> 2002.
</PRE>
• During the third quarter 2003 the Company purchased and sold 165,700
<PRE> marketable securities and realized a gain in the amount of $32,377. The
Company also received 605,000 shares of marketable securities at
September 3, 2003 in payment of a current accounts receivable. At the end of
third quarter 2003 these 605,000 shares of a marketable security resulted in
an unrealized gain of $125,560 due to the increase in the FMV from $.6024 to
$.81.
</PRE>
Table of Contents
• During the second quarter 2003 the Company sold 380,000 HQNT shares and
<PRE> realized a loss in the amount of $20,733 due to the decline in the FMV of
the stock from March 31, 2003.
</PRE>
• During the first quarter 2003 5,000,000 restricted common shares with deemed
<PRE> Stockholder Equity of $100,000 were issued in exchange for 276,267 free
trading common shares of H. Quotient, Inc. (HQNT) (a publicly traded
company). The Company recorded an unrealized gain of $62,998 which reflects
the increase in the FMV of 276,267 HQNT shares from $.362 to $.59 at
March 31, 2003.
</PRE>
• During the first quarter 2003 the Company recorded an unrealized loss in the
<PRE> amount of $77,800 which reflects the decline in the FMV of 103,733 HQNT
shares from December 31, 2002 at $1.34 to $.59 at March 31, 2003.
</PRE>
• During first quarter 2003, the Company sold 100,000 HQNT shares and realized
<PRE> a loss of $64,845 due to the decline in the FMV of the stock from
December 31, 2002 at $1.34.
</PRE>
• The unrealized gain on marketable securities for the nine months ended
September 30, 2002 recognizes a total increase of $269,570 in the value of
<PRE> the marketable securities held by the Company.
</PRE>
• Realized gain or loss for the nine months ended September 30, 2002 includes
<PRE> a realized gain on the receipt of 6,000 common shares of Nutraceutical
Clinical Laboratories International, Inc. (NCCL) for payment on an aged
accounts receivable. A net gain of $3,630 was realized for the difference of
the debt paid and the fair market value of the common shares. Also during
the nine months ended September 30, 2002 the Company realized a gain on the
sale of obsolete inventory by receipt of 18,000 common shares of
Nutraceutical Clinical Laboratories International, Inc. (NCCL). The
investment in common shares was recorded at $31,500 which represents fair
market value of the security.
</PRE>
• Realized gain or loss on sale of assets for the nine months ended
<PRE> September 30, 2002 recognized a net gain of $35,934 on the sale of
marketable securities.
</PRE>
• During the nine months ending September 30, 2002 a realized sale of cash
credits recognized a net gain on the sale of cash credits in the amount of
$64,500. This investment has now been reclassified as a marketable security
<PRE> at the fair market value as of June 30, 2002. The cash credits were
originally received when the Company sold inventory in May 2001 to SGD
International Corporation. These credits were originally recorded in June
2001 in the amount of $129,000 with a stated value of $150,500. These
credits were exchanged for 430,000 shares of restricted common shares of
H-Quotient, Incorporated (HQNT). At December 31, 2001 the $129,000 was
written down to $64,500 due to their restrictions. Currently, a remainder of
$23,000 cash credits still remains with SGD International.
</PRE>
Consolidated gross expenses for the first nine months of 2003 decreased by
$5,471, or.3% to $1,705,196 compared with $1,710,667 during the same period of
2002.
• The cost of goods sold for the nine months ended September 30, 2003
increased by $307,794, or 77% to $710,068 compared with $402,274 during the
<PRE> same period of 2002. There was a decrease in the cost of goods ratio as a
percentage of sales to 55% during the current year 2003 compared to 58% in
the same period of 2002. The increase in the cost of sales resulted
primarily from a combination of increased sales at 89% over the same period
of 2002 offset by a change in product mix. The Company is currently working
toward decreasing the cost of goods ratio as a percentage by improving the
product mix with higher margins.
</PRE>
Table of Contents
• General, selling, and administrative expenses for the nine months ended
September 30, 2003 decreased by $120,073, or 12 % to $844,186 compared with
$964,259 during the same period of 2002. Decreases that affected general and
<PRE> administrative costs were associated with administrative wages which
decreased for the nine months ended September 30, 2003 by 60% to $66,214
compared with $164,288 in the same period 2002. This decrease is
attributable to the reduction in staff on payroll with the functions now
being handled by personnel on consulting contracts. Decreases that affected
general and administrative expenses were associated with professional legal,
consulting and accounting fees for the nine months ended September 30, 2003
that decreased by 48% to $145,398 compared with $278,969 in the same period
2002. Additional decreases in general and administrative costs were
associated with public company expenses for the nine months ended
September 30, 2003 the decrease in this category decreased by 81% to $13,684
compared with $72,083 in the same period 2002. The higher expenses in 2002
were the result of the annual shareholder meeting which was held on March 6,
2002. Additionally, selling expenses increased for nine months ended
September 30, 2003 by 15% to $349,078 compared with $304,776 in the same
period 2002.
</PRE>
• Research and development for the first nine months of 2003 decreased by
$33,486 or 31%, to $73,546 compared with $107,032 during the same period of
<PRE> 2002. The decrease was due primarily to the use of outside services for
registrations instead of internal staffing. The Company continues to do
additional research on the focus of broadening the range of claims we can
assert on our existing products and on testing new products for
commercialization.
</PRE>
• Interest expense for the first nine months of 2003 decreased by $159,706, or
<PRE> 67% to $77,396 compared with $237,102 during the same period of 2002. The
decrease in interest expense was due primarily to negotiation with certain
expired Convertible Debenture holders to waive accrued interest in the
amount of $206,537 in exchange for closer to market conversion rates for
their debt instruments. Interest continues to accrue on other various debts.
</PRE>
• Operating losses decreased to $327,131 during the first nine months of 2003
<PRE> from $784,461 during the same period of 2002. This represented a 58%
decrease in operating losses.
</PRE>
Table of Contents
Liquidity and Working Capital
Historically, our principal source of financing for our research and development
and business activities have been through sales, equity offerings, and debt. As
of September 30, 2003 and September 30, 2002 we had working capital deficits of
approximately $3,838,617 and $2,634,354 respectively. Our independent certified
public accountants stated in their report on the 2002 consolidated financial
statements that due to losses from operations and a working capital deficit,
there is substantial doubt about the Company's ability to continue as a going
concern. We are addressing the going concern issue in virtually every aspect of
our operation. We continue to cut operating expenses and are successfully
changing our product mix such that the company is achieving improved margins.
Because of our significant losses incurred since inception, we have become
substantially dependent on (1) loans from officers, directors, and third
parties, (2) private placements of our securities, (3) revenue from sales, and
(4) liquidation of our marketable securities to fund operations. These results
of these items are included in the following descriptions.
• During the third quarter of 2003 the company liquidated a portion of its
<PRE> marketable securities for a net cashflow of $142,676.
</PRE>
• During the third quarter of 2003 the company borrowed $75,000 in short term
<PRE> loans.
</PRE>
• During the nine months ended September 30, 2003, 93,719 common shares were
<PRE> issued under the company's S8 Registration Statement to an employee under
the terms of their employment contract. The average effective price per
share was $0.048.
</PRE>
• During the third quarter 2003 200,000 common shares were issued under the
company's S8 Registration Statement to legal counsel as a retainer for legal
<PRE> services to be provided to the company. The effective price per share was
$0.05.
</PRE>
• During the second quarter of 2003 we issued a total of 5 convertible
debentures for cash proceeds of $120,000 and accounts payable retirement of
$13,200. These debentures carry interest rates of 10%, have terms of 3 years
<PRE> and have conversion rates between $0.04 and $0.05.
</PRE>
• During the second quarter of 2003 the company liquidated a portion of its
<PRE> marketable securities for a net cashflow of $198,265.
</PRE>
• During the second quarter of 2003 2 Convertible Debentures with principal
<PRE> balances of $30,000 and accrued interest of $6,726 were converted into
1,224,221 shares of common stock.
</PRE>
• During the second quarter of 2003 $6,200 of the Loan and Security Agreement
principal was converted by the holders to -0- shares of Series B Preferred
<PRE> Stock and 400,000 shares of Common Stock.
</PRE>
• During the six months ended June 20, 2003, 71,893 common shares were issued
<PRE> under the company's S8 Registration Statement to a consultant under the
terms of their contract. The average effective price per share was $0.042.
</PRE>
• During the second quarter of 2003 660,000 common shares were issued to a
former officer of the Company in fulfillment of all obligations to him under
<PRE> his employment contract with the Company.
</PRE>
• During the three months ended March 31, 2003, 245,000 common shares were
<PRE> issued under the company's S8 Registration Statement to our legal counsel
for legal services provided to the company. The effective price per share
was $0.025.
</PRE>
Table of Contents
• During the first quarter of 2003 the company liquidated a portion of its
<PRE> marketable securities for a net cashflow of $67,147.
</PRE>
• During the nine months ended September 30, 2003, accounts receivable
<PRE> increased by $6,926 to $105,131 from $98,205 at December 31, 2002. This
increase is attributable to our increased sales level.
</PRE>
• During the nine months ended September 30, 2003, inventory increased by 19%
<PRE> to $270,304 compared with $226,688 at December 31, 2002. The increase is
necessary to meet increased sales level demands.
</PRE>
• We plan to utilize our current debt financing arrangements and pursue
additional equity and debt financing while managing cash flow in an effort
<PRE> to provide funds to increase revenues to support operation, research and
development activities. We believe that our long-term success depends on
revenues from operations from product sales and ongoing royalties from
technologies. If such sources of funds are not adequate, we may seek to
obtain financing to meet operating and research expenses from other sources
including, but not limited to, future equity or debt financings.
</PRE>
• As of November 7, 2003, we have cash of approximately $293,000 and during
<PRE> November and December, we expect cash flow of $300,000 from operating
activities, private placements and possible sale of marketable securities.
This level of liquidity should be sufficient to operate the Company for
180 days. The Company anticipates increasing sales, reduced operating
expenses, and additional private placement funding will contribute to
continuous operations of the Company.
</PRE>
• We anticipate utilizing a portion of our funds to support the working
<PRE> capital requirements of our anticipated increase in sales.
</PRE>
• If disruptions occur in third party vendors that supply raw materials to our
contract fill manufacturers, we may experience the inability to have product
inventory for sale to our customers. Such events could have material adverse
effect on Veridien to compete effectively in the marketplace. We continue to
<PRE> utilize the services of a number of contract fill manufacturers. These
contract fill manufacturers have been successful in locating sources of our
commonly available raw materials and converting these into finished products
and we believe that use of these contract fill manufacturers will assure us
of the timely production of products.
</PRE>

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