Mhammer-
I was posting from the 10Q.
You're going to OUT me?? I'm not sure what that means, but, do whatever you have to do.
Here, from the 10Q, this isn't bashing, it's what I'm seeing in their filings.
MEDIRECT LATINO, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 10. Stockholders' Equity
During the nine months ended March 31, 2007 the Company issued 81,652 shares to Tomas Johansen
a former director of the Company for services rendered and expensed the fair market value totaling $253,121
at $3.10 per share.
During the nine months ended March 31, 2007 the Company issued 335,800 shares of common stock to a
third party at a fair value of $3.15 per share to settle a liability under a lawsuit. At June 30, 2006 the amount
due was recognized as a liability totaling $1,057,770 (see note 2).
During the nine months ended March 31, 2007 the Company issued 25,000 shares of restricted common
stock to a third party and expensed the fair market value totaling $50,000 at $2.00 per share to settle a liability
under a lawsuit.
Note 11. Litigation
The Company was a defendant in several lawsuits filed by VENDORS breach of contract at March 31, 2007.
The plaintiffs have claimed a total of approximately $500,000. The outcome of these cases cannot be predicted
at this time.
On or about February 9, 2002 an individual filed a complaint against the Company and two major SHAREHOLDERS alleging that the plaintiff was crucial in starting the Company and claimed entitlement to 1,500,000 shares of
common stock. A settlement agreement was executed on October 30, 2006 under which the Company agreed
to pay the sum of $100,000 to the plaintiff. At March 31, 2007 the liability had been settled in full.
MORE FROM THE 10Q
Note 3. Going Concern
The accompanying financial statements have been prepared on a going concern basis. The Company had a net
operating loss of approximately $3.6 million for the nine months ended March 31, 2007 and an
accumulated deficit of approximately $33.9 million. The Company's ability to continue as a going concern is
dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities
arising from normal business operations when they become due, to fund possible acquisitions, and to generate
profitable operations in the future.
MORE FROM THE 10Q FREE MONEY FOR "MAJOR SHAREHOLDER AND KEY MANAGEMENT
Note 8. Stock Options
During March 2007 under service agreements with a major shareholder, an officer and certain key employees
the Company allocated 1,650,000 shares of stock in the form of stock options, annually over the three year
period of each contract, with the options being earned quarterly during the term of the Agreement.
MORE FROM THE 10Q FUNDING IN JEOPARDY
The Lenders have not funded the second tranche of $1.75 million citing the Company violated the terms of
the subsection "Avalable Cash/Liquidity" which required the Company to maintain $1,000,000 in cash.
The Company and the Leaders amended the Loan and Security Agreement on April 20, 2007, with the
lending group advancing a further $250,000 to the Company, with a reduction of like amount from the second
tranche should any future funding take place.
AI
