Arista Power, Inc. (ASPW)

[Longwinded]

The $1.5 million in the PR is literally a lifeline for WindTamer. Kudos to all who pulled this off, which I’m sure must have included the much-maligned VP of IR Cherrie Mahon and CFO Molly Hedges, one of the straight arrows. Annoying as the lack of info was, they were doing as our mothers taught us: “If you can’t say anything nice, don’t say anything at all.” Much better for them to work on the lifeline than to put out a PR about how badly they needed one.

As the company comes off life support, I hope that they have learned to KEEP payroll and expenses as low as possible until AFTER the money is rolling in, and frugal even then. No more Hummers!!!
Anybody remember Stirling Homex? Fanciest offices around, then bankruptcy. Please!

The “91 new jobs” in the PR are over a 5-year period. When they expect to, or have to, START hiring is not mentioned in the PR.
I sure hope they don’t hire ANYONE until the existing staff is tired of working too much overtime.
So you and Bubbles don’t need to worry about payroll for 91 more people for a while.

When they ARE ready to hire, they don’t need to have the new employee’s lifetime pay set aside.
When you’re bootstrapping, all you need is a couple months of his pay on hand until some customers pay up.
They also have a bunch of money coming for existing installations, the balances due after the turbine’s performance has been improved, but maybe they have already improved them and used this money to stay alive.
And once the POs are there, the bank’s purse strings will start to loosen.
And there are usually SBA guarantees available to the bank if the company shows signs of life.
And they can make a multi-million-dollar private placement to Wakl. Heck, he was ready to write a $52,000 check if they would just wave a purchase order at him.

The “up to $900,000 in tax credit assistance [from the NY State jobs program] … may instead be received in cash under certain circumstances”. Such as what circumstances? Along with preparing the facility for manufacturing, maybe this clause would allow them to buy the materials needed when those big orders come in. Otherwise it’s very embarrassing to get a big order, and you can’t deliver it unless you get a big down payment, or finance the customer’s PO at loan-shark rates. There were rumors that they had not been paying some suppliers, so they might have to front the cash for a while.

The City money, probably about $200,000, is so far just “potential”. With Duffy in Albany and a new mayor in charge and a new (budget?) year, maybe they can firm that up. It’s a loan, not a grant.

The County $400,000 is not a grant either. But all of these things could make up enough bridge money to keep them alive until real orders come in. When cash is a gusher, they can re-pay those loans.

Now that we have started the new year, maybe some customers are on a new budget and can finally issue that PO that is part of the $15-25 million in sales this year. Could be an exciting month.


You asked me to chime in, so –
prn: At the sound of the tone, take another drink: CHIME!
That should be all the excuse that you and Wakl and Skeptic need.
Speaking of need, what happened to Beachfrontbuy?
Sorry I’ve been busy – not YET an independently-wealthy coupon clipper like yourself.

Reference PR text:
“The project includes leasehold improvements, acquisition and installation of machinery and equipment, training of employees, and working capital. Empire State Development (ESD) has awarded up to $900,000 in tax credit assistance through its Excelsior Jobs Program, which may instead be received in cash under certain circumstances. The City of Rochester's Neighborhood and Business Development Department also provided a proposal letter for a potential low-interest loan subject to the appropriate review and approvals. Monroe County's Department of Planning and Development also provided a letter offering up to $400,000 in assistance through a variety of programs, such as sales tax incentives and low-interest loans. The estimated total project is expected to result in a creation of at least 91 new jobs over a 5-year period, with existing employees being retained.”