Acqua Group Reports $703,156 Quarterly Loss
Acqua Group Inc., a Van Nuys distributor of bottle-less water coolers, said its loss for the fiscal fourth quarter widened to $703,156 from $13,993 a year earlier on a 35% drop in revenues, to $546,737 from $849,418.
For the nine months ended Oct. 31, Acqua lost $1.64 million contrasted with a year-earlier profit of $219,414. Revenues fell 27% to $2.18 million compared to $3 million in the nine-month period last year.
Lee Archer, president and chief executive, said the results reflected excessive overhead costs that are now being pared down at the rate of about $60,000 a month. Also, in mid-October the company had no inventory and only a skeleton sales force as a result of a working capital deficit, Archer said.
The company in October raised $600,000 through two private placements of 1.2 million shares of common stock and 1,200 shares of preferred stock, Archer said. Archer also said an investment banker, whom he declined to identify, has agreed to use its best efforts to raise up to $1.5 million through the sale of 500,000 shares of preferred stock in a private placement. The shares will each be convertible into two shares of common stock.