CurAegis Technologies Inc. continues to post losses, despite a vigorous rebranding effort, and reports its cash on hand will not cover the company’s future working capital requirements.
For the second quarter, CurAegis, formerly Torvec Inc., reported a net loss of $1.39 million, compared with a loss of $1.07 million in the second quarter last year. The company reported a loss on revenue of $29,000, unchanged from a year ago.
The automotive and related technology company reported a net loss in diluted earnings per share of 3 cents, unchanged from the second quarter last year.
The company reported a decrease in cash flow for the period of $1.94 million, compared with a decrease of $583,000 a year ago. Its cash on hand, documents filed with the Securities and Exchange Commission show, is $67,000. Company officials estimate 2017 cash needs will range from $4 million to $4.6 million.
“This raises substantial doubt as to the company’s ability to continue as a going concern,” the Security and Exchange Commission documents state.
The SEC filing also notes that if CurAegis is unable to launch and generate sales from its CURA division, the company would need to raise funds to meet its working capital needs. Management expects sources for the additional funds will be available through current or future investors, the SEC filing states.
In July, CEO Richard Kaplan invested $100,000 in the company and received 20,000 common stock warrants in connection with the investment, SEC documents show. In a May CEO update posted on the company’s website, Kaplan said CurAegis was on schedule to have its CURA system ready for shipments in the third quarter.
“We are starting a new $3 million raise,” Kaplan wrote in the update. “Our plans are for this to be the last raise we will need; however, this is not a guarantee and depends on our projections coming to fruition.”
CurAegis develops and markets advanced technologies in the areas of safety, wellness and power. Its two divisions are focused on commercializing a wellness and safety system and a hydraulic pump.
Shares of CurAegis stock (OTC: CRGS) had not moved Wednesday morning from Tuesday’s close of 72 cents.
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