News

Power Interactive files third-quarter figures

February 19, 2002

MARKHAM, Ontario, Canada - Digital photography kiosk developer Power Interactive Media Inc. announced a loss of $931,580 on revenue of just $7,555 during the third quarter, ending Oct. 31. The company cited its status as a developmental company for the shaky financials, and admitted that further investment will be needed to aid its progress.

The company, which was incorporated in 1994 and has focused on the kiosk industry since late 1999, has lost $18,259,624 since its inception while generating revenue of $42,966. During the third quarter of 2000, ending Oct. 31, the company recorded a loss of $3,599,766 while failing to generate any revenue.

Incorporated in Florida and based in Markham, Ontario, Canada, Power Interactive has developed a line of point-of-purchase, digital photography kiosks that are used to create photo packages of newborn babies and to superimpose personal images on photos of sports stars and celebrities.

In a statement to the Securities and Exchange Commission, company officials said its developmental status is the primary reason behind Power Interactive's meager early financial returns.

"Since its inception, the company has incurred significant expenditures on the research, development and marketing of a kiosk digital imaging system and has a deficit of $18,259,624 as at October 31, 2001," the report said. "The company has not generated significant revenue and management does not expect to commence generating revenue until customers are secured and financing can be obtained to fund the manufacture and distribution of the kiosks."

Power officials did not estimate when the company would begin generating significant amounts of revenue, and said its future hopes would probably be pinned to its ability to gain and retain investors.

"The company is currently attempting to obtain additional financing from its existing shareholders and other strategic investors to continue its operations," the report said. "However, there can be no assurance that the company will obtain additional funds from these sources."