InPlay Auditors Raising Substantial Doubt About Future

It looks like 2008 is going to be a tough year for InPlay Technologies. In their 2007 financial statement, released March 24 2008, auditors expressed “substantial doubt” about InPlay’s ability to continue as a “going concern.”

““As expected, our revenue in the fourth quarter was down as we completed production for our largest FinePoint customer. We have made significant progress in our efforts to win new projects utilizing both our FinePoint and Duraswitch technologies. Until we are able to close new product sales and begin production, we are mindful of our cash use,” said Stephen Hanson, InPlay chairman and CEO.

As a result of InPlay’s financial condition, the company’s auditors have raised substantial doubt about our ability to continue as a going concern.  The consolidated financial statements do not include any adjustments related to the recoverability of recorded asset amounts that might be necessary as a result of this uncertainty.

““2007 was a transitional year for InPlay. We have deep roots in technology design and confidence in our products’ advantages. Our efforts over the last year have focused on creating the infrastructure that we believe will be necessary to support our customers and successfully execute our business strategy,” Hanson added. ““We begin 2008 an almost entirely new company. We have a new leadership team, stronger internal skills and have partnered with select industry leaders for manufacturing, engineering design and marketing
support. With these critical pieces in place, we are focused on execution.”

I spoke with Heather Beshears, InPlay’s Vice President of Corporate Communications, about their just released financial statement. She confirmed to me that they are definitely in a challenging position right now, and do need to land some contracts to go forward.  They do not currently have any signed purchase orders for their capacitive touch technology, which raised the concern for the auditors. Their priority right now is in shoring up the balance sheet, and winning some key accounts.

InPlay definitely envisions a place for their technology in the marketplace. Let’s see if the OEMs agree.

GBM will continue to follow InPlay’s status closely.