The only thing I can think of is that there may have been some clause that if they missed a payment, that the loan immediately became callable?
That's what still bugs me about all of this. I agree that sometimes you have to take out loans, but if the business is working I'm thinking they should have had the revenue to cover the debt obligation(s)given the B&D royalties/sales. That said, if they didn't get paid for what they sold to Sharper Image, they could have easily ended up in a cash flow crunch.
All should be answered here by the end of the month when the 10Q is due. I'm hoping it says that they have put their problems behind and will become cash flow positive going forward.
At this point, I'll wait and watch until I see some positive progress before getting back on board.
GLTU,
Murocman
