iPrint Auditor Has Substantial Doubt the Company Can Survive
Press release from the issuing company
April 3, 2002 -- (WhatTheyThink.com) -- Arthur Andersen, iPrint’s independent auditor, has expressed substantial doubt that iPrint can continue as a going concern.
According to iPrint's annual report filed Monday with the SEC, Arthur Andersen included an emphasis paragraph expressing concern over iPrint’s recurring operating losses, a negative working capital deficit and failure with certain bank covenants.
iPrint was incorporated in 1996 and initiated their online print shop offering, www.iPrint.com, at the end of 1996. Last year, they expanded into the enterprise market with a corporate e-printing offering, compatible with major e-procurement platforms. iPrint completed a merger with Wood Associates - a promotional merchandise marketing company. The purpose of the merger was to gain access to Wood’s Fortune 1000 customers, their nationwide sales force and Wood’s relations with suppliers.
The company lost $17.6 million last year. As of December 31, 2001, iPrint had an accumulated deficit of $69.4 million and a negative working capital deficit of $2.2 million. The company has incurred negative cash flow from operations for the past two years.
The annual report states that iPrint is in the process of amending their revolving credit facility and exploring other financing as an option to replace the one in place. Says the report: “In light of our declining stock price and the extreme volatility in the capital markets, additional funding may not be available on favorable terms or at all.”
iPrint’s stock price closed yesterday at $.14, just two cents above it’s all time low of $.12. The current stock price indicates a market capitalization of $4.2 million.
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