Greg,
They are spot on with what they have been saying all year long.
Their admin expense increase was mostly due to paying lawyers for the patent infringements suits.
"Operating expenses for the nine months ended September 30, 2010 were $4,543,976, almost all of which was general and administrative expenses. The most significant operating expenses incurred during the nine months ended September 30, 2010 were general and administrative expenses relating to pending litigation, as well as depreciation of about $788,000 and a non-recurring expense of about $695,000 relating to the Company’s construction of corn oil extraction systems at two ethanol facilities. In the nine months ended September 30, 2009, when we had limited litigation expenses, our general and administrative expenses were $2,526,138."
They are on target to reduce their debt by 30%.
"reducing debt by an additional 30% during 2010. Notably, after the above transaction with YA Global is effective, we will have reduced our debt this year by a total of $12,314,413, or by 29%, during 2010, an amount which also reduces our annual interest expense by about $690,000." That $690,000 becomes cash flow for next year.
Writing down inventory unfortunately happens in business.
net of a one-time write-down of inventory in the amount of $1,315,315.
The good news is that it is done and we shouldn't see it again anytime soon. Better now than later. I expect to see an increase in PPS IMO
Overall, it looks like Greenshift is getting their house in order and making way for future profits. I personally look forward to the 10-K, and the Q1 report in 2011.
