WASHINGTON — Source Media Inc.’s auditors doubt the company’s ability to continue as a going concern, the firm reported in a filing with the Securities and Exchange Commission.
The Dallas-based interactive-advertising company said the auditors, in reaching their opinion, considered Source Media’s (SRCM) net loss, potential need for more funding this year for a joint venture and obligation to pay interest payments of approximately $5.3 million due on both May 1 and Nov. 1.
The company had revenue of $17.9 million in 2000 and net loss attributable to common stockholders of $19.8 million, compared with 1999 revenue of $19.1 million and a net loss of $40 million. Source Media’s total assets decreased to $31.1 million from $58 million during the year, primarily as a result of the sale of its joint venture with Insight Interactive LLC to Liberate Technologies (LBRT), the filing said. The sale was agreed to in January.
The company also said that recent developments have made it unable to file its annual report on time, but that it will file the report on or before April 16.
Copyright (c) 2001 Dow Jones & Company, Inc.
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