CGUD $0.26 Latest SEC filing of Com-GuardNASDAQ | SEC FilingLiquidity and capital resources.


We have financed our operations primarily through cash generated from the sale of our stock and loans to us. We are no longer classified as a development stage company and have commenced the sales and marketing of our products.
During the six months ended December 31, 2003, the Company incurred a net loss of $730,497 and negative cash flows from operating activities of $243,821, has a stockholders’ deficiency of $728,071, an accumulated deficit of $8,136,162 and a working capital deficiency of $728,071 as of December 31, 2003. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.


During the year ended June 30, 2000, the Company acquired certain hardware ISA circuit boards from a current shareholder for approximately $638,000. This inventory has since been written down to $60,000 based on its current value. During the year ended June 30, 2001, the Company acquired a new series of PCI circuit boards from another shareholder for $600,000. As of March 31, 2003, this inventory has been reduced to $165,000. The Company is the sole licensee outside of Korea for these circuit board products. We are not aware that either vendor has ever sold these same products to any other third party. The Company has the license rights to manufacture (outsource) these products from other outside vendors. The Company will, based on sales and demand, determine whether to outsource manufacturing to another vendor or reorder from its Korean vendor