Salon Auditors Doubt Company Can Stay in Business: "Salon, which has won numerous awards for its thoughtful articles on topics from politics to sex, said in a Securities and Exchange Commission filing that it has recently suffered a sharp decline in revenues, which fell 50 percent in the fiscal year ended in March, to just $3.6 million. Its advertising revenues over the same period tumbled 68 percent to $1.9 million."

According to their latest 10-K, "[r]evenue is recognized ratably over the subscription period. During the year ended March 31, 2002 in which Salon Premium operated for approximately eleven months, Salon received $1.1 million in cash from approximately 35,100 subscribers, recognized $0.6 million of revenue for this service, and recorded $0.5 million as deferred revenue in its consolidated balance sheet as of March 31, 2002."

06/28/02 update: Salon CEO Michael O'Donnell's statement re press reports on the Webzine's finances.