The Debt Issues Remain
From the SEC filing:
We are in default on certain equipment leases and shareholder promissory notes. If these leaseholders and note holders are successful in suing us we may have to curtail our operations, making it difficult to reach a profitable level of operations.
We previously operated virtual reality entertainment centers in a number of theme parks. We leased some of the equipment needed to operate these entertainment centers from approximately 140 leaseholders. In October of 2001 we told all of the leaseholders that we were suspending payments on their leases. Further, we previously had entered into promissory notes with approximately 14 shareholders. We were successful with a debt-to-equity conversion plan in December of 2004 with the holders of approximately 90% of the combined leaseholders/noteholders converting lease obligation to common stock. However, we remain in default with the remainder -- 19 unconverted leaseholder investments in default as of December 31 2006, representing $257,000 in principal, and $187,065 in accrued interest, and we have a judgment against us from a noteholder, representing an additional $121,386 in principal amount and interest.
We owe the IRS $759,971 in payroll tax liabilities, which could lead to a seizure of our assets by the IRS.
As of September 30, 2006, we had $893,903 accrued for various payroll tax liabilities. In May 2006, we received notices from the IRS of tax liens that have been filed related to these accrued amounts, and of their intent to levy. A seizure of some of our assets by the IRS could make it difficult or impossible for us to complete some of our existing contracts, resulting in substantial losses. On November 5, 2006, the IRS appropriated $142,750 in receipts due us from a customer, resulting in delays in delivery to other customers.
GLTA
These are my personal comments, observations, opinions and should not be relied upon for any investment decisions, and as always read the SEC filings for the facts of the company
