Ngen Technologies Holdings Corp. (fka NGRP)

[Winters]

It’s the reserve requirement for the existing notes (and to borrow more) that forces the AS so high. Average lender requires 4-6 times the loan value in the AS as collateral reserve, with some notes able to go even higher. Some lenders require as much as possible just to keep the company from borrowing elsewhere (preventing conversion competition) taking control of the company’s cash flow. They never give the amount you need to execute the business plan, just enough to stay operational. It’s extremely difficult to get out from under such an existence.