Salon Down to Last $1.5 Million in Cash
By THE ASSOCIATED PRESS
SAN FRANCISCO -- Online magazine publisher Salon Media Group Inc. faces the prospect of going out of business if it can't raise more money this summer, according to documents filed with the Securities and Exchange Commission.
As of March 31, San Francisco-based Salon said it was down to its last $1.5 million in cash -- enough to keep its business running for three or four months, according to the company's annual report to shareholders.
Salon's precarious position prompted the company's auditors, PricewaterhouseCoopers, to conclude there is ``substantial doubt'' about its prospects for survival.
The auditor's warning threatens to make it even more difficult for Salon to raise money, the company said.
In its SEC filing, Salon also acknowledged its history of past losses poses a fund-raising hurdle. Since its 1995 inception, Salon has lost $76.6 million, including an $11.3 million setback in its most recent fiscal year ended March 31.
Salon has been trying to boost its revenue by offering a subscription service that excludes advertising and gives readers access to more stories. Through March 31, Salon had signed up 35,100 subscribers who paid $1.1 million in fees during the company's last fiscal year.
Shares of Salon were down 3 cents to close at 6 cents Thursday on the Nasdaq Stock Market. Nasdaq has warned Salon its shares will be delisted unless the stock rises to at least $1 by Aug. 13.