A recent SEC filing from Bidz.com references new doubts about the online jewelry seller.
“We have reported net losses for the years ended Dec. 31, 2010 and 2011 and future uncertainty in our financial performance raises substantial doubt about our ability to continue as a going concern,” says its 8K, filed March 16 with the SEC. “Management is taking steps to increase gross profit margins and reduce expenses to improve our financial performance and we believe that we can generate sufficient operating cash flows to continue our operations. However, no assurances can be given as to the success of our plans.”
The filing further notes that while it believes that “cash currently on hand and cash flows from operations will be sufficient to continue our operations for the foreseeable future,” future requirements may include additional financing.
In 2011, the company reported a $7 million loss.
Bidz declined additional comment to JCK. However, in a statement accompanying its most recent financial results, Bidz CEO David Zinberg said while the past year had been “challenging” for the company, it was pleased with the results from “flash sale” website Mondique.com, which sells other items besides jewelry, and had a 158 percent increase in net revenue.
“Over the past year, we’ve been working hard to manage expenses and improve margins, and during the quarter we started to see the positive impact of these efforts,” he added. “Operating results improved significantly due to improved higher gross profit margin and lower operating expenses resulting in net income of approximately $98,000, our first profitable quarter in 2011.”