I have to believe that DKAM is not the only company that LIQR does business with that is owed a substantial amount of money. That is a pretty darn good game. Get a bunch of companies to sign agreements with you, then ship them a bunch of products that they do not ultimately pay for, suddenly you have a pile of cash, get a reporter to write a story of all the companies you are going to acquire with all the "found" money you suddenly have, watch your stock price go higher, then watch everybody dump their shares for massive profits.
Especially when Liquor Group already admitted that "many other suppliers" were not filling orders. This would indicate those companies were not getting paid either:
RESULTS OF OPERATIONS
For the Three Months Ended February 28, 2009 Compared to the Three Months Ended February 29, 2008
Material changes in items in our Statements of Operations for the three months ended February 28, 2009, as compared to the same period in the prior year, are discussed below:
Increase (I)
Item Decrease (D) Amount Percentage Explanation
---- ------------ ------ ---------- -----------
Sales I $123,211 117.4% One of our largest and most geographically-diversified
unaffiliated suppliers, Drinks Americas, was unable to fulfill all
of the confirmed sales orders that we generated during the last
quarter, as did many other suppliers leaving more than $250,000
of orders unfilled as of the close of the fiscal quarter ended
November 30, 2008. Some of those orders spilled over into the
quarter ending February 28, 2009 causing an increase in sales,
making it a late selling season and increasing sales and profit-
ability for our three months ended February 28, 2009.
Cost of sales D $7,748 8.3% Increased sales equate directly to increased cost of sales.
2
No, this is not a class of people we need to do business with, nor those who write the stories claiming their ultimate success in this industry.
I applaud Mr. Kenny for putting his foot down and recognizing a shyster when he sees one, and getting rid of him before he does us more damage!
