A new regulatory filing from Florida-based firm Infinium Labs has revealed that the company needs to find fresh funding of around $11.5 million if it is to launch its Phantom game service next year as planned.
The company, which has delayed the launch of the Phantom Game Service and its associated Phantom console until Q2 2005 from its originally planned November 2004 launch, currently has only $20,991 cash on hand.
So far the firm has incurred a net loss of $27.25 million since its inception in late 2002, and it lists total assets of $1.29 million and total liabilities of $10.69 million in its balance sheet as at September 30th this year.
"The company is in the development stage with no sales and has a working capital deficiency of $10,611,532," the filing states. "This raises substantial doubt about its ability to continue as a going concern. The ability of the company to continue as a going concern is dependent on the companys ability to raise additional capital and implement its business plan."
On top of the $11.5 million needed to actually launch the Phantom and achieve its first 10,000 sales, Infinium also extimates that it's going to require around $10.7 million beyond that to achieve cash flow break even, bringing the firm's total funding needs to $20.2 million.
"We have retained SG Capital to assist us in raising capital and we are currently in negotiations with a number of parties to raise capital," the company announced in the filing. "If we are unsuccessful in raising capital or we do not launch the Phantom Game Service when currently planned, we will need to curtail our proposed spending."