CARLSBAD, Calif. (AFX) - Portable lighting products maker Xenonics Holdings Inc. said Friday it received an audit opinion containing a 'going concern' qualification.
If a company qualifies as a 'going concern,' it means it has enough financial resources to operate; if not, the company is bankrupt.
In Xenonics' 10-K filed Dec. 15 with the SEC, the auditor included a statement noting that since the company posted losses for the years ended Sept. 30, 2006 and 2005 and has an accumulated deficit, there is substantial doubt about Xenonics' ability to continue as a going concern.
In the filing, auditors said the companys continued existence is dependent on its ability to obtain orders from the Department of Defense and/or additional equity and/or debt financing to support planned operations and satisfy obligations. There is no assurance the company will be able to do so.
Xenonics Holdings products are used primarily by the military and law enforcement to illuminate dark areas.
The company's shares rose 2 cents to close at $2.45 on the American Stock Exchange, and fell 9 cents, or 3.7 percent, to $2.36 in aftermarket electronic trading.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2007 AFX News
