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So far the summer of 2011 has seen its share of giant wildfires. Recently GelTech Solutions, Inc. was profiled in CNN – Your Money’s segment on small businesses for its product – FireIce. The company is committed to continuing the work of developing sustainable solutions that solve common problems and maintain the integrity of the earth – today and for generations to come. The FireIce product appears to be incredible stuff if you are in the path of these destructive fires. While it appears to be remarkable, why isn’t the company doing so well? See if you can come up with some answers, based on their financial statements.

1. Go to the company’s website at Then look at GelTech Solutions, Inc. 10K for 9/28/10 (found at What amount has the company spent on Research and Development over the last two years? What was most of this spent on? Explain how you would account for R & D in terms of journal entries.
2. What is the company’s experience and expenditures for marketing?
3. Where is the company headquartered?
4. How old of a process did they say the FireIce concept was on the video?
5. What are the contingencies that the company is facing?
6. Are there any clues to why the company is not profitable? What are they?
7. Would you consider buying this stock? Why or why not? Explain.

Sources: (2011). Blowtorch your hand without a wince, June 6 (Retrievable online at