Capstone Companies Inc (CAPC)

[dizzydon]

ok flip..had no idea about that

but wouldn't the amount they can borrow be limited by 85% of Accounts Receivable and 50% of Inventory?
i have no way of knowing what those amounts were as of May 1st but there are the amounts for each as of 3/31 in the first quarters filing

is $480 net receivables the Accounts Receivables?
the inventory is given as $322k

the credit line opened on or about May 1st..about 1 month later..hard to imagine that either inventory or accounts receivable went up sufficently to permit them to draw on the entire $2,000,000 limit

also something in exhibit 10.1 about an "inventory sublimit" and a "letter of credit sublimit"

ok,went back and looked,very plain that those two amounts of money have to do with subordinating to Sterlings line of credit..that money owed Sterling takes precedence over those two