According to the company's quarterly report, its revenues have increased as compared to the previous period, though APNT has suffered higher research and development expenses. The company's assets are lower than its liabilities and its stockholders' equity has decreased.
The management expects to achieve profitability during this year and states that its current cash balances, along with the expected revenue sources, will "enable us to operate well into the second quarter of 2011". However, the team claims that at its present level of activity, "it is not possible for us to achieve profitability without license fees" and the company's research revenue should more than double to get any profit.
As Applied Nanotech expects to continue to incur substantial research and development expenses, the company keeps searching for additional funds. In the meantime, investors should carefully observe the future movement of APNT stock.