Marani Brands Inc. (MRIB)

[Matthew Berg]

Veronica, I have to correct you. I certainly am suggesting that the Fed or more realistically, the state, would shut them down or at least hamstring them. $250,000 is a serious amount for the FTB. California is doing whatever they can to collect money and they've become incredibly aggressive especially on payroll taxes. The 2008 economic crash put a lot of sole proprietors in bad shape and they held off paying 941s and FTB. They've been dropping off like flies unable to meet the tax commitments for the past 6 years. I personally had half a million in receivables disappear due to companies going belly up on this issue, mostly small companies. 30 days went to 90 days went to "sorry, we can't pay you." Marani looks a lot like those companies. $2M in debt, $300,000 in gross sales, $100,000 a month in expenses. Just look at the numbers and ignore the infomercials and company double speak.

Bottom line is the services have no patience for net loss companies not even paying normal state income taxes and withholding payroll taxes that they see as belonging to them outright. Their position is those operators are financing their companies with state money. The state is going broke as fast as Marani. It's a serious issue and don't be surprised to see this become a major issue.