JMIH's loan guarantee expense is because of the CEO personally guarantees a bank line of credit of $500,000 (also $200,000 in inventories).
This is the kind of funny stuff that has kept me from taking a larger position in this one. Just recently, the CEO was granted another 500,000 shares for this loan guarantee. This has been an ongoing expense for some time. Perhaps it was a valid expense at one time, but when the average loan balance has been running about $250,000 (based on recent filings) and the company has $600,000 cash in the bank it seems more of a rip-off to the stockholders at this point. The actual cost of the CEO's loan guarantee raises the equivalent interest rate of the loan from 6 1/4% to about 40%.
Maybe if we all write the CEO and complain he'll get the message. Without this kind of stuff, I think the SP would be much higher.
