Koil Energy Solutions Inc. (KLNG)

[deathtotaxes]

That analysis of the loan is not very complete. The assumption that DPDW does not have to pay beyond $75,000 x 16 payments is off base.

It would also appear the warrants are an inducement to provide the loan, they are not an offset to loan payment.

None of the exhibits appear to be included that show the actual warrant document or collateral provided for the loan.

Last time I had a business loan I provided 100% collateral, guarantees personal & corporate, paid an above market interest rate, etc. Nothing unusual about it.

These guys want to make a fat interest return and massive stock price appreciation. Can't blame them, if all goes well they will be fatter and happier.

"(a) The outstanding principal of the Loan will be repaid (i) by Borrower making quarterly installments of $75,000 commencing on September 30, 2008 and on the last Business Day of each quarter thereafter, and (ii) by Borrower making a final payment of the amount of the Loans outstanding on the Final Maturity Date, in each case as set forth on Schedule 2.03 to the Agent for the account of each Lender. The Borrower hereby authorizes the Agent to, and the Agent may, from time to time, debit the Debt Service Reserve Account with the amount of any payment due hereunder."