tsa thinks shoe scanner is a lemon

Further to my previous post:
http://www.usatoday.com/travel/news/2007-10-09-tsa-shoe-scanner_N.htm

This was the only QR product that showed any market potential. The fact that it has been pulled from market so quickly is a bad sign for QRS.

Apart from QRS' 'unique interpretation' of the continuous disclosure rules, the strange trading in the stock is also cause for concern.

And how close is the company to being insolvent? It is a negative cash flow business (so needs to raise millions every year just to keep going), but couldn't have more than a couple of hundred k in cash.

Perhaps the need to raise capital in the near future (which will no doubt will mean a lot more dilution) also explains the strange (hot/cold) trading in the stock.

But could QRS even raise more capital now? How difficult will it be given recent test failures for QR products??