Liquidity, Financial Condition And Management's Plans	6 Months Ended
Jun. 30, 2011
Liquidity, Financial Condition And Management's Plans
Liquidity, Financial Condition And Management's Plans	NOTE 3 – Liquidity, Financial Condition and Management's Plans We generated $1.8 million of cash from operations during the six months ended June 30, 2011 and have working capital of $35.1 million. We incurred a $3.0 million loss from continuing operations, net of income tax expense, during the six months ended June 30, 2011 and have a $193.7 million accumulated deficit. Our net loss includes an aggregate of $4.4 million of net non-cash charges, principally consisting of $3.3 million of depreciation and amortization, $1.5 million provision for doubtful accounts and $1.5 million of foreign currency losses, offset by $2.9 million of negative goodwill arising from the acquisition of SamoaTel (see Note 6). Our sources of funds include cash from external financing arrangements, including term loans in the amount of $22.2 million and a revolving line of credit facility of up to $6.5 million from ANZ Finance American Samoa, Inc. ("ANZ Finance"), various lines of credit with multiple local banks in South and Central America and financing of trade payables provided by our principal supplier. As more fully described in Note 6, on March 31, 2011, we consummated the closing under a Share Sale and Purchase Agreement with The Government of the Independent State of Samoa pursuant to which Bluesky SamoaTel Investments Limited ("BSI"), a subsidiary of AST Telecom, LLC ("AST"), acquired 75% of the issued and outstanding capital shares of SamoaTel Limited ("SamoaTel") in exchange for $11 million. We own approximately 75% of BSI and the remaining 25% is owned by other financial investors. SamoaTel is a provider of telecommunications products and services in Samoa and offers a full range of services including fixed line, mobile, data and calling card services for homes and businesses in Samoa. Prior to this transaction, AST had no operations in Samoa, which is approximately 80 miles from America Samoa, where AST operates. Additionally, as more fully described in Note 7, on May 31, 2011, we completed the closing under the Contribution Agreement, whereby Amper acquired 150,745,913 shares of our newly issued common stock in exchange for the contribution to eLandia of approximately 79.7% of the outstanding capital stock of Medidata. Management believes that we will have sufficient working capital to sustain operations through at least July 1, 2012. The acquisition of Medidata and SamoaTel are expected to provide us with a significant working capital surplus in the future. However, there can be no assurance that the plans and actions proposed by management will be successful or that unforeseen circumstances will not require us to seek additional funding sources in the future or effectuate plans to conserve liquidity. In addition, there can be no assurance that in the event additional sources of funds are needed they will be available on acceptable terms, if at all.

Liquidity, Financial Condition And Management's Plans

6 Months Ended

Jun. 30, 2011

Liquidity, Financial Condition And Management's Plans

Liquidity, Financial Condition And Management's Plans

NOTE 3 – Liquidity, Financial Condition and Management's Plans

We generated $1.8 million of cash from operations during the six months ended June 30, 2011 and have working capital of $35.1 million. We incurred a $3.0 million loss from continuing operations, net of income tax expense, during the six months ended June 30, 2011 and have a $193.7 million accumulated deficit.

Our net loss includes an aggregate of $4.4 million of net non-cash charges, principally consisting of $3.3 million of depreciation and amortization, $1.5 million provision for doubtful accounts and $1.5 million of foreign currency losses, offset by $2.9 million of negative goodwill arising from the acquisition of SamoaTel (see Note 6).

Our sources of funds include cash from external financing arrangements, including term loans in the amount of $22.2 million and a revolving line of credit facility of up to $6.5 million from ANZ Finance American Samoa, Inc. ("ANZ Finance"), various lines of credit with multiple local banks in South and Central America and financing of trade payables provided by our principal supplier.

As more fully described in Note 6, on March 31, 2011, we consummated the closing under a Share Sale and Purchase Agreement with The Government of the Independent State of Samoa pursuant to which Bluesky SamoaTel Investments Limited ("BSI"), a subsidiary of AST Telecom, LLC ("AST"), acquired 75% of the issued and outstanding capital shares of SamoaTel Limited ("SamoaTel") in exchange for $11 million. We own approximately 75% of BSI and the remaining 25% is owned by other financial investors. SamoaTel is a provider of telecommunications products and services in Samoa and offers a full range of services including fixed line, mobile, data and calling card services for homes and businesses in Samoa. Prior to this transaction, AST had no operations in Samoa, which is approximately 80 miles from America Samoa, where AST operates.

Additionally, as more fully described in Note 7, on May 31, 2011, we completed the closing under the Contribution Agreement, whereby Amper acquired 150,745,913 shares of our newly issued common stock in exchange for the contribution to eLandia of approximately 79.7% of the outstanding capital stock of Medidata.

Management believes that we will have sufficient working capital to sustain operations through at least July 1, 2012. The acquisition of Medidata and SamoaTel are expected to provide us with a significant working capital surplus in the future. However, there can be no assurance that the plans and actions proposed by management will be successful or that unforeseen circumstances will not require us to seek additional funding sources in the future or effectuate plans to conserve liquidity. In addition, there can be no assurance that in the event additional sources of funds are needed they will be available on acceptable terms, if at all.

- Definition

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

+ Details

ELANDIA INTERNATIONAL INC. 10-Q/A