Online media ad transaction platform company SWMX, operator of the SoftWave Media Exchange, reported that Q3 revenues fell to 321,930 from 632,579 a year earlier. The company’s net loss increased to 3.4 million from 2.8 million. If your station is owed money by SWMX, you will be interested in this statement from the quarterly SEC filing:
"Over the past quarter the delinquency of our accounts payable to media organizations has increased significantly. This increase has adversely affected our business and relationships. Certain media organizations have referred us to collection agencies. Others have refused to accept orders from our customers placed through our marketplace. In addition, some of our customers have refused to pay outstanding receivables. We have been and continue to attempt to remediate this situation through the following steps:
1. On October 3, 2007, we restructured our credit facility with BlueCrest, providing us with the ability to borrow up to 3.5 million to fund operations, through January 31, 2008.
2. We have begun to repay amounts owed to media organizations.
3. We are communicating with our media vendors to keep them informed of our progress and the steps we are taking to remedy the situation.
4. We are seeking to complete a financing transaction, which would satisfy the requirement to repay BlueCrest by January 31, 2008, properly fund our company and allow us to satisfy our payables that are in arrears.
Although we believe these steps are helping to remediate the situation and reduce our risk, there can be no assurance that we will be successful in executing these steps or that if successfully executed these steps will improve the adverse affects that may have already been caused."
RBR/TVBR observation: Too little to late as the saying the Beginning to the End. Our forecast for SWMX is very cloudy with key people leaving over the next few months. Here is a young company that once had it and then lost it as quick. It is a business model that should be studied when getting into this electronic media business today and for the future. What SWMX did wrong and right.