CTTC defaulted on a loan?
I just noticed in CTTC's last 10-Q:
"As of May 14, 2014 the Company has not repaid the principal due on the March 2012 $100,000 note or the April 2012 $25,000 note and as such is in default under the terms of the notes. There is also unpaid interest related to these notes."
That refers to this note:
"In March 2012, the Company issued a 24-month convertible promissory note to borrow $100,000. Additional 24-month convertible promissory notes were issued in April 2012 ($25,000) and in June 2012 ($100,000). All of the notes bear 6.00% simple interest. Conversion of the eligible principal amounts to common stock is allowed at any time after the six month anniversary of the effective date of each note at a rate of $1.05 per share."
Unpaid interest? Default?? Does the bondholder have a lien on CTTC as well???
Would defaulting on a loan require an 8-K filing?
I dunno, but it seems like being in default on a $100,000 loan
might be considered "material" -- as in a hint that the next step is chapter 11 -- wouldn't you agree?
Especially considering the latest "corporate fact sheet" indicates that as of May 30, they had 3.1 MILLION dollars in total debt!
That's a half million more than what they reported at the end of March! And how much you wanna bet it's ALL convertible into virtually truckloads of CTTC stock?
Figure also that they owe GEOMC over 4 MILLION dollars and GEOMC DOES have a lien on CTTC's inventory!
I dunno, it just seems like defaulting on loans deserves some kind of 8-K apart from a one line note in a 10-Q!
I think I'll ask the SEC for their opinion -- in 2011, they harangued CTTC up one side and down the other for late 8-K filings and for failing to file in situations where one was required. Maybe Conrad hasn't kept up with the rules and needs a reminder.
