At the conclusion of a year in which it endured fraud, suffered through poor economic conditions, and merged with a rival, things don’t look good for rich media email firm MindArrow, In the company’s consolidated financial statements for the fiscal year ended Sept. 30, 2001, MindArrow’s auditors expressed doubt about the company’s ability to continue as a going concern — a sure sign of a company in serious trouble. MindArrow says revenues for its fiscal year, which ended September 30, 2001, increased to $3.5 million, more than double the $1.6 million it brought in during the previous fiscal year. It reported a net loss of $36.2 million or $3.32 per share for the fiscal year, though $18.7 million, or $1.71 per share, was due to fraud in which the company’s former transfer agent issued false stock certificates. The operating losses, according to the company, were caused by increased expenditures on technology, staffing, mergers and acquisitions, as well as non-cash charges of $1.7 million related to amortization of goodwill and stock-based compensation. With this kind of cash burn rate — which continues, according to the company, at the pace of $650,000 a month — MindArrow desperately needs the $1.5 million private placement it obtained at the end of December. It’s been getting along with bridge loans and private placements in the past few months, but, as of December 15, had only around $343,000 in available cash, and had negative working capital of approximately $2.4 million — which included current liabilities as well as a payment due on a promissory note. So, the $1.5 million raised after December 15 will certainly come in handy, especially since the firm is only bringing in an average of $300,000 in revenues monthly. “The company faced many challenges from external events in fiscal 2001, but we believe MindArrow has emerged as a stronger, more efficient organization,” said president and chief executive Robert Webber in a statement. “Already, in our new fiscal year, we have expanded our product offering, obtained several new clients, seen repeat business from several existing clients, and we have reduced costs across the board.” The company anticipates seeking new financing in mid-2001, but there’s obviously no guarantee it will be successful. “While we will certainly face additional challenges in the year ahead, we survived a very challenging environment last year, and now have several significant business transactions in the pipeline that we believe will help us meet our goals for 2002,” said Webber. MindArrow’s clients include Hewlett-Packard, Northwest Airlines, Johnson & Johnson, Toyota, Warner Bros., Disney, Microsoft, Avaya, Marriott and the NBA (National Basketball Association). even though it’s doubled its revenues from last year, and raised an additional $1.5 million to see it through the next few months.