|Youbet.com, the online horse-wagering network seems to be in trouble – according to its auditor. |
In Youbet.com’s annual report filed Monday with the Securities and Exchange Commission, its auditor BDO Seidman said that the doubts about the company’s future were related to its recurring operating losses and its need to raise additional funds.
In the report, Youbet says that its cash flow will improve, based on its previous cost-cutting measures and increased efficiency, along with the opening of its Oregon wagering hub in September 2001 and the receipt of licensing from California in February, this according to a report from Dow Jones.
David M. Marshall, Chairman and Chief Executive Officer said in a press release on Monday: “Looking ahead, our wager processing outlook continues to look very promising as we enter the busy season in horse racing,' Marshall continued. 'Beginning this month, the Youbet Network is introducing content for the first time from such notable tracks as Churchill Downs, Hollywood Park, Saratoga, Del Mar, and Arlington, among others.”
The company acknowledged that it will need a fresh injection of capital to fund operations, pay down liabilities and to fund its expansion plans, over and above the $750,000 it raised this March.
For the year ended December 31, Youbet posted an operating loss of $15.1 million, compared with a loss of $16.2 million the previous year.