Exten Industries (fka BB: EXTI)

[Patricia_1]

Interesting post/Officers' Stocks


By: rickj_65
30 Nov 2003, 12:12 PM EST
Msg. 17667 of 17693
(This msg. is a reply to 17657 by stillpursuing.)
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Stillpursuing/WestEffer et al

How many times do we have to revisit this topic?

The shares being reported by officers in the recent SEC Form 4s are NOT purchases. The officers are not buying the stock...they are granted the stock as compensation for services performed. Please refer to page 11 of the most recent 10Q...

http://www.sec.gov/Archives/edgar/data/811779/000108638003000061/extq0803.htm

"Even with the new agreement with XenoTech, we have operated and will continue to operate by minimizing expenses. The largest expenses relate to personnel and to meeting the legal and reporting requirements of being a public company. By utilizing consultants whenever possible, and asking employees to manage multiple responsibilities, operating costs are kept low. Additionally, a number of employees and the board of directors receive company stock in lieu of cash as part of their compensation to help in the effort to minimize monthly cash flow."

Also please refer to this e-mail from G. Szabo to myself...

http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=6464

"Thank you for your interest in Exten. Mr. Newmin, along with myself, our Board members, and some of our consultants are paid in stock instead of cash for some or all of their services. This is of great benefit to the company. Mr. Newmin in particular takes no cash and never has for all of the services he provides. We accumulate the stock that is earned by all and then a board resolution must approve its issuance. In this case that you reference, the stock was issued for services in June, July and August. He was not given stock at a discount as the stock was trading at this price at the time."

Stillpursuing - one can certainly spin this by saying the majority of the officer's compensation go into company stock, therefore its like he's getting his paycheck and immediately buying more stock. That's one way of looking at it. However, if you state that they are "purchasing" or "buying" stock, you are misleading investors on this thread. The officers are being compensated in stock...nothing more, nothing less.

Westeffer - When the company is in a financial position to compensate officers in cash, I'm sure they will. In the meantime, the company needs the services of these people. They have to be paid in some way for their services, right? OK, EXTI can either pay them in stock...whereby the stock is continued to be held by insiders. Or, EXTI can raise cash by offering private placements which also dilute the stock. However, the stock is no longer in insider's hands...they are in private placement financier's hands. Until Exten's revenues are such that they can begin paying officer's compensation AND use cash to bring their products to market, if you can come up with another method where the company can get the cash from I'm sure the company would love to hear it. In the meantime, I am grateful that the company keeps their shares in the family so to speak.

Regards,

Rick

http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=17667