Labor Smart Inc (LTNC)

[kmikesara]

when you have to front the money, which any temp staffing company has to, then low margin business forces you into reliance on financing, and beyond the factoring arrangement there is the convertible debt. I don't think it takes a rocket scientist to realize that the profit on the low margin business wasn't worth the cost of the convertible debt - - and with the pps low the only choice was to reduce the up front money to pay the temps and be able to pay the convetibles and not allow conversion.