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Hark! Is that a flushing sound I hear?

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#1 Andrax


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Posted 15 March 2006 - 03:29 PM

No, apparently its just Infinium Labs racking up 62+million dollars in losses over the past few years.

Prospectus details how would-be PC-game-console-maker lost $62.7 million in three years--and is putting the Phantom on hold. Infinium Labs is focused on getting its Phantom Lapboard to market, but the cash-strapped company is in need of additional financing.

Last month, the company announced an arrangement for $5 million in funding from Golden Gate Investors. As part of that agreement, Infinium has filed a prospectus with the Securities and Exchange Commission detailing the company's unprofitable past and laying out its game plan for the future.

From its inception in December of 2002 through September of last year, Infinium racked up $62.7 million in losses. Of that, only $3.5 million has been lost to development costs. The company has spent more than half that in advertising, even though none of its products or services have been released yet. More of the company's money has been going toward consultants ($12.8 million), salaries ($11.9 million), and general and administrative expenses ($5.9 million).

As for how the company plans to reverse its fortunes, the prospectus indicates that, for now, the company is backing off of its Phantom Game Service and focusing on getting its Phantom Lapboard peripheral to market...

...Infinium's filing also details a history of the company's broken agreements. It had signed royalty agreements with a number of publishers to provide games for its Phantom Game Service. Each publisher was guaranteed an advance royalty payment, and in each case mentioned, Infinium has so far failed to live up to its end of the bargain. It guaranteed advance royalties of $500,000 to Atari (publisher of the Dragon Ball Z and Driver series), $225,000 to Riverdeep (Carmen Sandiego, Reader Rabbit), $125,000 to Eidos (Tomb Raider, 25 to Life), $25,000 to Codemasters (TOCA Race Driver 3, RF Online), and $10,000 to Enlight (Bad Day L.A., Scrapland). Infinium is in default of its agreements with all of these companies.

While it might be just a tad bit early to completely close the books on Infinium, It is certianly starting to look like another big gold star on the founders list of failed companies that have cost investors millions of dollars and failed to produce anything.

You can check out the full article over at GameSpot

#2 Menelaus



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Posted 15 March 2006 - 04:08 PM

you'll need a very big dose of toilet duck to clear away the stench after this.
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#3 IBnotRich


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Posted 15 March 2006 - 05:49 PM

Ouch! Don't know if there's a flusher big enough for such a load!

#4 Mike


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Posted 15 March 2006 - 06:47 PM

:lol: I wonder how many of the "consultants" are related to the "salaried employees"?
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