Well, NotADocAtAll, is that your idea of commentary about ETLK, the focus of this board? Why am I not surprised? LOL
I'd have thought your keen interest in ETLK would have led you to use the past few days to review ETLK's recent 10-Q, which included the following information:
ETLK's total revenues plunged 29% in the three months ended 6/30/02 compared to the same period in 2001. Its cost of sales also dropped about 29%, so ETLK once again eked out a gross profit of US$13,000.
However, after adding in operating and other costs (including another $90,000 writedown in the value of the HRCT shares it holds), ETLK's net loss came in at US$835,000 for the quarter. That's an improvement over ETLK's US$1.1 million loss in last year's second quarter.
A major cost for ETLK during the six months through 6/30/02 was the US$579,000 charge the company took related to the issuance of 1,710,000 shares to "certain consultants and advisors" in exchange for certain "services." ETLK's S-8 filing with the SEC dated 4/11/02 names six "consultants and advisors" - including long-time HRCT attorney John Furutani, who provided his expert opinion on the S-8 itself - but does not indicate exactly what services these peoplr are providing in exchange for this largesse. (ETLK's S-8 filing dated 4/16/02 for another 2,000,000 shares - none of which appear to have been issued yet - names one "Tang Wai Leong" as an ETLK "consultant." Mr. Leong is well-known to HRCT shareholders as a "consultant" similarly rewarded for his actions on behalf of HRCT in concert with a certain Mr. Kwok, who received a large number of HRCT shares a couple of years ago and never paid for most of them. HRCT eventually admitted it did not expect to receive such payment any time soon.)
Oddly, under Note 8 of the 10-Q, ETLK management says, "Management devoted considerable effort during the period ended June 30, 2002, towards (i) obtaining additional equity financing (ii) controlling of salaries and general and administrative expenses and (iii) management of accounts payable. In that regard, on April 11 and 16, 2002, Elephant Talk filed two registration statements with the Securities and Exchange Commission to issue 4,000,000 shares in aggregate, that will provide the necessary capital to settle certain obligations of the consultants and to continue its operations during 2002."
Yet it appears the 1,710,000 of these 4,000,000 shares that have been issued raised no money at all. Instead, these shares were given away in exchange for unnamed "services."
In fact, ETLK had to borrow an additional US$273,000 from "related parties" to keep its operations going during the period.
As with its parent HRCT in the past, ETLK's current 10-Q also includes the warning that there is "substantial doubt about ElephantTalk's ability to continue as a going concern."
AI
