IdleAire Technology Corp. has filed a notification of late filing with the Securities and Exchange Commission in which the company said it was unsure if it can continue, and stated “the required audit of the registrant’s financial statements, could not be completed without incurring undue hardship and expense.”
“The Registrant expects to report a net loss of approximately $93 million and revenues of approximately $37 million for fiscal year 2007, as compared to a $60 million net loss and revenues of $14 million for fiscal year 2006,” the filing said. “Additionally, the Registrant expects to record an impairment charge of up to $1 million for fiscal year 2007, principally related to one non-core site.”
“The Registrant will disclose in its 2007 Form 10-K that it continues to experience net operating losses which, combined with the continued use of cash in its operations and the payment of interest due on its outstanding notes in December 2008, raise substantial doubt as to the Registrant’s ability to continue as a going concern,” it continues. “As a result, the Registrant expects that its independent registered public accounting firm will include an explanatory paragraph in its audit report to be included in the Registrant’s 2007 Form 10-K that indicates there is substantial doubt about the Registrant’s ability to continue as a going concern.”
However, the company has a strategy to keep the company alive. “Management, with Board approval, has engaged Getzler Henrich & Associates LLC and KPMG Corporate Finance LLC to assist and advise the Registrant in developing and implementing a plan that, if executed successfully, should provide sufficient liquidity to finance the Registrant’s anticipated working capital and capital expenditure requirements for the next 12 months,” the filing said. “However, there is no assurance that such plan can be executed on acceptable terms, if at all.”
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