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Scramble for Survival
In wake of NASDAQ
de-listing, IMA dials for dollars
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BNH
6/1/2000
By: BNH
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The failure to file it's annual 10K report on time by Information Management Associates Inc. (IMA) of Shelton has resulted in its de-listing from the NASDAQ stock exchange. The company's chief financial officer has resigned - and it is an all-out quest to raise cash.
The company is also exploring a range of strategic options to address its liquidity needs.
As a result of operating losses incurred in recent periods, the IMA is seeking to raise cash to fund ongoing operations as well as examining ways to reduce its ongoing needs for cash. The company is exploring a range of strategic options to address its liquidity needs.
John A. Piontkowski, IMA's chief financial officer, left the company in May amid the turmoil. The company has yet to name a replacement.
However, IMA announced that Michael P. McGroarty, IMA's general counsel, had been appointed chief operating officer.
On April 10, February 28 and November 18, 1999, IMA was notified by the Securities & Exchange Commission (SEC) regarding concerns about, among other things, the company's accounts receivable balances, the collectibility of such balances, and IMA's revenue recognition policies in light of such balances.
IMA says that in response it initiated an internal review of the accounting for certain transactions in 1999 and certain prior periods. That was the reason, say IMA officials, the company failed to file its Form 10-K for 1999 or its Form 10-Q for the quarter ended March 31 - resulting in NASDAQ's de-listing of its stock, which traded most recently under the symbol IMAAE, effective May 19. IMA says it does not expect to do so an internal review is completed some time in June.
The company will now trade on the OTC market under the symbol IMA.
The financial turmoil comes at a time that the company is seeking to recast itself with a new business model, to give away its ECRM (Electonic Customer Management Software) license free over the Internet (see BNH May 1, 2000), via a new Internet subsidiary Freefire.com
The 16-year-old IMA reported last reported sales of $32 million for the nine month period ending November 1999.
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