Equity Technologies names private placement as financing initiative

By Sheri Kasprzak

New York, Jan. 30 - Equity Technologies & Resources, Inc. said private placements may be conducted to provide the company with enough cash to continue as a going concern.

Equity is a development-stage company, according to its latest form 10-QSB filed with the Securities and Exchange Commission, and until now, its day-to-day expenses have been met with proceeds received from the issuance of stock and notes payable.

"During their development stages, the companies [Equity Technologies and subsidiary Verified Prescription Safeguards, Inc.] have had limited operations and have not been able to develop an ongoing, reliable source of revenue to funds its existence," said the form 10-QSB.

"The adverse effect on the companies' results of operation due to its lack of capital resources can be expected to continue until such time as the companies are able to generate additional capital from other sources. These conditions raise substantial doubt about the companies' ability to continue as going concerns.

"Management has implemented, or developed plans to implement, a number of actions to address these conditions, including the acquisition of VPS and the development of VPS' projects, which management believes will provide opportunities within the prescription drug and health care industry.

"Management's plans include obtaining working capital funds by seeking additional funding from shareholders, debt financing and/or private placements of its common stock to meet such needs."

According to the form 10-QSB, Equity's management believes it will receive enough income from its current shareholders to sustain it for the next two years.

Looking to its earnings, Equity Technologies sustained a net loss of $50,665 for the quarter ended March 31, 2005, compared to a net loss of $90,498 for the same quarter in 2004.

Based in Lexington, Ky., Equity Technologies currently has no operations, but acquired Verified Prescription Safeguards in December 2000.

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