i took a look at their filings and ...
there are a few things that raise the caution flags.
*** they have two former names... i didnt look to see if management actually ever changed... but it does mean that two former companies dwelt here.
FORMER COMPANY:
FORMER CONFORMED NAME: EMPIRE COMMUNICATIONS CORP
DATE OF NAME CHANGE: 19980327
FORMER COMPANY:
FORMER CONFORMED NAME: LITIGATION ECONOMICS INC
DATE OF NAME CHANGE: 19961022
perhaps the third time will be a charm.
*** the balance sheet isnt strong with current assets of 1,869,863 exceeding current liabilities of 3,426,395. simply put the company owes nearly twice the amount of what it has on hand. Accrued expenses - [for employees is 680,088 .... are these payroll taxes?
*** the OS on the company went from 27 million at Sept of 2002 to 41 million at Sept of 2003. the company is selling convertible notes In April 2003, the holders of $500,000 aggregate principal amount of convertible
secured notes converted the remaining $250,000 of the outstanding principal
($250,000 of principal was converted into the unsecured convertible notes
described above) and 100% of the accrued interest into 6,785,715 shares of
Company Common Stock pursuant to the conversion terms of the convertible secured
notes.
*** another matter that warrants consideration is:
At September 30, 2003, accounts receivable from the largest customer was $53,000, or 8% of total trade
receivables. This customer is also a stockholder of the Company. The Company was a subcontractor for this customer/stockholder during 2002 and 2003, which
beneficially owned approximately 13.5% of the Company's outstanding common stock as of November 13, 2003. In addition, accounts receivable from two other customers aggregated 21% and 11% of accounts receivable at September 30, 2003. For the nine months ended September 30, 2002, revenues from one customer exceeded 10% of total revenue, aggregating 41% of total revenue.
perhaps you can give a summation of the company's business model and tell us why you like the company.
Lazarus
AI
