Manaris (AVNY)

[jmack3265]

Hi Walter, decided to checkout Manaris and was hoping you can fill in any info I should be aware of. After a quick read of the financials it appears that:
Fiscal Year July-June
A/S = 500M
0/S = 81,591,866
Warrants average weighted 6M @ $.51 Range .09-.80

Two operating divisions:
1. Avensys = Optical components & sensors. (primary Revenue)
2. C Chip = Engine Kill switches for sub prime car market revenues derived by royalty payments

Revenues increasing 57.4% YOY
Gross margins currently 30.6% 9Mo YOY
Small Net Profit $32K 9Mo YOY
Cash on hand $984K 124% increase YOY

Note: Appears C Chip owed money to a former supplier and is currently being paid off in royalty revenues approx. Balance owed $ ?

Note: Derivative financing was used by Avensys to acquire ITF $654 cash $872 common stock @ a fixed $.34 SP.

Convertible debt:
Unsecured convertible debt $3.2M 12% & 15% maturity 2011

"The Company has incurred significant losses since inception and has relied on non-operational sources of financing to fund operations and, as at March 31, 2007, had not respected a certain loan covenant."

Question: What is the loan covenant that wasn't honored? Looks like Avensys defaulted on a $1.1M line of credit?

On balance it appears Manaris is starting to make money. Can you tell me more about Avensys and what are the optical components and sensors that are driving the majority of Manaris's revenues?