Wolf Energy Services Inc (WOEN)

[Oxonius]

Another near-disaster of a quarter with the only highlight (for John at least) being that on top of his salary he has taken over $250,000 in "back pay" that he claims that he is owed ... you may recall that during those many years of austerity and abject failure by the CEO that he believed that his salary (over $300,000) was fully appropriate.

It was not, in any way, appropriate but as there was no independent oversight, nor any responsible Board committee, his decision was unchallenged. When there was no money in the kitty, he simply submitted IOU's rather than reducing the salary value and the company's obligation. Then he issued himself millions of options at below market rates - not as a replacement for salary, but in addition to it.

So, having squandered the family's legacy through lack of vision, bad management and ineptitude, he sells off the IP and the rights to the product(s), generates a substantial cash injection to the company, and then proceeds to trouser the cash as fast as he reasonably can as a reward for his prior failure.

Maybe I would be a bit more tolerant if we were generating $2 to $3 million in revenues per quarter but the supply agreement looks like it is going nowhere and has pretty thin gross margins. The one big deal we get is with a bankrupt utility with hoped for delivery pushed out yet again into Q4.