"Huge" why? It appears to have zero effect on their cash flow, or cash expenditures or imminent and critical cash needs (see their going concern and other warning in recent 10-K) as they've been paying nothing on it (to Beaumont) anyway? Cash is their most dire, critical need IMO?
Elaborate on why it's "huge"? What material effect will it have on their financial condition or ability to pay current creditors/debt obligations? They paid, according to the last 10-K cash flow statement, $521K in interest in 2013 from cash raised, all other "notes due" and "cash paid obligations", "accounts payable", etc according to the Statements of Cash Flows appear to have been paid in "shares issued" deals (dilution) (10-K page F-14) and none of that was related to this recent 8-K "accrued" interest?
Again, what makes it "huge"? Why? If you still don't have cash to meet day to day obligations (which they are very close to, on any given day, week, month according to their financial statements and 10-K warning statments), and this "material event" doesn't change that- then how is it "huge"?
Their biggest need is cash, cash coming in, in a timely matter to meet creditors demands who have the ability to declare "default" if not paid on time or adequately, IMO. I don't see anything from today changing that situation? They were not using any cash or cash from financing activities (Asher, share sales, etc) to pay anything to Beaumont anyway- so what would be/will be different now?
It's essentially an accounting entry IMO, and it's one that shows they had to negotiate a "debt forgiveness" deal with a creditor they apparently could not, or did not want to use cash from financing operations to pay back? Not sure how that is "Huge"?
Unless there are details otherwise- it's another big "conjecture" statement largely about nothing, "Huge" IMO? What does that mean, "Huge"? How? Why?
How are they a "growing" business when they didn't use cash from sales, or cash even from "financing" to pay back this debt obligation? They "negotiated" a settlement on it- that's what the document says? Meaning, it was a write-off, loss for the creditor? A growing business would have paid them with cash from sales, or cash from financing, etc IMO and not needed to seek to have the debt extinguished? How is that a "growing business"? Makes zero sense IMO? That's a business in cash/debt trouble IMO?
