Lifestream Technologies Inc.s auditing firm recently expressed substantial doubt as to the Post Falls companys ability to continue as a going concern, based on its operating losses and slim revenues.


The auditor, BDO Seidman LLPs Spokane office, says Lifestream has incurred substantial operating and net losses, as well as negative operating cash flows, since its inception.


The statement was contained in Lifestreams recent annual 10-K report, filed Sept. 30 with the U.S. Securities and Exchange Commission.


Brett Sweezy, chief financial officer at Lifestream, says the auditors statement was made in response to the companys previous 12 months of results, and that Lifestreams next fiscal year could be very different.


Lifestream, which makes cholesterol-testing devices, is basing that expectation on the introduction of a new, lower-priced consumer model of its device, which will be on the market this year.


Were announcing a $99 product and corresponding margins that allow us to make industry-standard profits on those products, Sweezy says.


Lifestream next week plans to announce one or more new distributors of that product, he adds.


The cholesterol monitors typically have sold for $129.95, and Lifestream will continue to offer a deluxe version of the device at that price.


Sweezy also says that Lifestream is negotiating with potential investors and is optimistic about landing financing.


The company says in its SEC filing that it has reduced its operating expenses by eliminating some noncritical jobs and consulting contracts. Sweezy declines to say how many jobs have been cut, but says many were in the production side of our business.


Most of Lifestreams production now occurs overseas, although some still is done at Spokane-based Servatron, and the company continues to have a small production and packing operation at its Post Falls headquarters, he says.