So you are of the opinion $368K cash is enough to fund a major disaster operation thru a storm or 3?
End of year they had 0 cash on books > They borrowed 500k from Laurus Jan 07 > End of March they had 368k > So they used 150k cash for NORMAL operations in 3 months. And NO 100k monthly payments to Laurus by temp agreement
In my opinion they need MUCH MORE cash to operate in a storm. You know insurance payments from these storms are slow to pay, by WEGI own filings they are STILL trying to get paid for work done almost 2 years ago now.
From the filing >
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2007, we had a cash balance of $376,680, working capital of $2,401,441 and stockholders’ equity of $1,118,826. As of June 30, 2006, we had a cash balance of $610,884, a working capital deficit of $20,220,862 (including derivative liabilities of $27,163,901) and a stockholders’ deficiency of $16,749,348. We realized a net income of $11,103,042 for the nine months ended March 31, 2007 (including a gain on embedded derivatives of $15,721,986). The reduction in cash was due to the need to cover operating losses. We will be dependent upon collection of accounts receivable, improvements in operating results and cash flow and/or further financings to generate cash to finance operations.
Accounts receivable, net of allowance for doubtful accounts, at March 31, 2007 and June 30, 2006, were $7,463,197 and $11,235,904, respectively. For these periods, approximately $2,588,000 and $5,089,000, respectively, of these amounts were disputed claims subject to collection litigation, primarily related to disputes over modifications of our work.
Item 1. Legal Proceedings
We are a plaintiff in approximately 19 lawsuits claiming an aggregate of approximately $7,500,000 pursuant to which we are seeking to collect amounts we believe are owed to us by customers that are included in our accounts receivable, primarily with respect to modifications to our scope of work. The defendants in these actions have asserted counterclaims for an aggregate of approximately $1,500,000.
We are a party to other litigation matters and claims that are normal in the course of our operations, and while the results of such litigation and claims cannot be predicted with certainty, management believes that the final outcome of such matters will not have a materially adverse effect on our consolidated financial statements, results of operations and cash flows.
