ERHC Energy Inc (ERHE)

[Krombacher]

There's no way to get PPP without revenue.

It cannot be that Offor lent Erhc some money to make payroll and voila, a govt grant (or more precisely a forgivable loan)

If that were the case, everybody and their brother would be artificially boosting payroll to get more govt money.

No sir, the SBA definitely scrutinizes tax returns and looks for revenue.

So to support $400k of payroll plus salaries above $100k, then revenue has to be somewhere around a million to a million and a half because payroll means employees and that means expense reports, various costs, office expenses, etc. The revenue has to be about a million bucks or more.

But, this company had the same valuation of a corner dry cleaner if not lower. But dry cleaners, at least in most towns, I don't think are pulling a million in revenue.

And so where are they getting this revenue? It can't be from Ntephe doing some personal training at the gym. That's a lot of personal training for a million bucks.

So what is up their sleeve?

Here are some random possibilities:

1) Erhc actually did have some marginal oil producing properties in Africa.

2) Erhc is doing a consulting gig with Total to assist with due diligence in the buy out by Total

3) Some deal with Starcrest

4) Something completely out of left field like a property "X"

Whatever it is... why oh why do they not announce such good news? Are they not proud of this momentous accomplishment?

But then who cares if Total is buying you out?

The more nonchalant Erhc is about good news, the more I'm inclined to believe that they got this in the bag with Total.

Krombacher