Oxis warns shareholders as cash reserves fall.(OXIS International)(Brief Article)

"Shareholders could lose their entire investment" in Oxis International Inc., the company disclosed in its second-quarter earnings report.

With cash and cash equivalents almost completely exhausted--just $462,000 on June 30, compared with $4.5 million Dec. 31, 2000--Oxis stated that it no longer has "sufficient capital to sustain ongoing operations." The company also reported working capital--the difference between current assets and current liabilities--of $149,000.

Oxis officials will try to raise capital by selling assets, investments and securing loans, but the outlook is cloudy. Equity financing would likely be significantly dilutive for current …