http://www.mcgladrey-family.us/kayne/archives/2003/08/23/littermaid_vs_litterfree.html
an excerpt:
August 25, 2003
The company is out of business mostly because it had to many investors and when the last amount of investment was needed to bring down costs, (to the company and the consumer), increase production, advertise and increase staff there was lots of people wanting to invest until they saw the long list of people that already invested in the company and they wanted no part of it. (Most have 4-6 investors not over 15).
Once the company is out of bankruptcy, it will come back in a big way. The second generation of the unit was ready to come and was much improved. It was quieter, slightly larger, did not blow air when it drained but sucked the air and had an air filter to make it even less stinky. (The filter would come with the cleaning cartridge) It also had a disable sensor so if the timer went off and the cat was in the box, it would delay the cleaning 10 minutes.
The founder/inventor want to bring the product back in 12-6 months with the right funding and staff in place to do it right this time.
(Note -- the author of the above excerpt has an email address @litterfree.com)

