This has more to do with the financial state of The Tube and their short term prospects - as well as FCC regulations other than E/I broadcasts.http://biz.yahoo.com/e/061220/tubm.ob10qsb.html
Results of Operations for the Nine Months ended September 30, 2006 and 2005
We have recorded revenues of $1,558 for the nine months ended September 30, 2006 compared the approximately $253,000 in net revenues for the nine months ended September 30, 2005. During the first nine months of 2005, the Company generated revenue primarily from its record label subsidiary. During the first nine months of 2006, the Company did not generate any revenue from its record label subsidiary but did generate $1,558 from e-commerce sales.
Operating expenses from continuing operations were $9.8 million and $1.8 million for the three months ended September 30, 2006 and 2005, respectively, the majority of which was general and administrative expenses. General and administrative expenses were $5.8 million for the three months ended September 30, 2006, compared with $1.3 million for the three months ended September 30, 2005. The increase reflects increases in affiliation agreement fees, amortization of intangible assets, bad debt expense, stock compensation to directors and stock options to officers, employees and consultants. Legal and professional expenses were $353,000 and $285,000, for the three months ended September 30, 2006 and September 30, 2005, respectively. The increase reflects increased compliance cost for SEC filings, legal costs and auditing expenses. Thus far in 2006 our liquidity constraints have limited our ability to engage in marketing, promotion, advertising and similar expenses necessary to develop our business. We expect this trend to continue until such time as we can complete another substantial debt or equity offering.
Liquidity and Capital Resources
The growth and development of our business will require a significant amount of additional working capital. We currently have limited financial resources and based on our current operating plan, we will need to raise additional capital in order to continue as a going concern. We currently do not have adequate cash to meet our short or long term objectives. In the event additional capital is raised, it may have a dilutive effect on our existing stockholders.