Althought the employment agreements have been in place since 2008, this is the first time that I have seen the Company acknolwedge a default in payment of salaries.
Of particular note: On June 30, 2010, the Officers agreed to
defer action, giving the Company a reasonable opportunity to register a new Stock Option Plan, failing which, the provision to
provide collateral can be invoked.
What good is a new stock option plan without available unissued stock? Perhaps the Company is trying to nudge the shareholders in the direction of increasing the amount of authorized shares?
While Cal and Company have made significant advances in the technology and its introduction into the marketplace, history has shown us that investments in plant and equipment don't happen overnight. Cal and Company know that they and us long suffering shareholders stand to make a lot of money as the Company continues to gain traction in the marketplace, but with every growing company comes growing pains. I assume that Cal and Brian do not have unlimited funds so therefore additional infusions of outside cash are still needed to sustain operations in the short term. I do not get the impression that Cal or Brian are interested in pursuing a default and liquidating collateral as that is a short-sighted limited remedy with no real payoff. Rather Cal and Company want to be able to award more options to themselves to fund operations while continuing to gain marketshare. Of course the only way to do that is to increase the amount of authorized shares.
In that vein, I wish that they would present us with a business plan as to what direction they wish to take the company instead of leaving us wanting and guessing. At this stage of the progression of the company, I tend to think that the shareholders would much more seriously consider such an increase.
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