Cell-Loc has reported a net loss of $6,920,652 (0.33 cents per share) for the first quarter of fiscal year 2001 ended Sept. 30.
That’s up from net losses of $4,987,604 (0.23 cents per share) in the previous quarter ended June 30 and $720,672 (0.05 cents per share) in the year-ago quarter ended Sept. 30, 1999.
In its quarterly report, the company cited the launch of its TimesThree branded wireless location services on its Calgary network, the start of deployment of a wireless location network in Austin, Tex., the hiring of 27 additional employees during the period and the ensuing need for additional office space in Calgary as contributing factors.
Deployment and operations expenses rose to $1,713,292 in the first quarter, up from $862,927 in the previous quarter and $12,895 in the year-ago quarter. Cell-Loc has evolved from an R&D company to a provider of wireless location equipment and services.
The company invested this year in two wireless location networks in Calgary and Austin. These cities will be used as live, wide-area demonstration networks with a view to generating future equipment sales and location services revenue.
Cell-Loc said because it has concentrated this year on vertically integrating its suite of wireless location equipment, application and service platforms, it has not realized product sales for the past two quarters. The company said that it will need additional funding to reach full deployment of the Austin wireless location network.
The company has received a binding commitment from its CEO and largest shareholder, Michel Fattouche, to provide enough additional equity financing to meet Cell-Loc’s projected working capital requirements for a six-month period, if requested by the company.