Boils down to business decisions made by management. Please bear with me. I'm not bashing. I need this to go up. Just trying to point out WHY there is no serious interest anymore in the company.
What could of happened? How could the company go from selling 66 S322 models and 60 S594 models to customers during 2009, to 'Jack Crap' in 2010? Of course, they still lost money for '09 'primarily as a result of the change in the fair value of the derivative liability of $1,005,573, interest expense of $22,204,164 recorded for the fair value and accrued interest of the 9% convertible notes, recording of share based compensation of $15,298,100, and loss on debt extinguishment of $12,038,687, all non-cash charges. The remaining amount of net loss relates to various operational, general and administrative and other expenses for growing existing business.'
So. Lets explore why sales have plummeted this last year and why the company has collapsed to the stage it is at now.
Remember, the collapse in PPs started in february of 2010. And it has since cascaded into a giant snowball rolling down hill. The events leading up to that crash started, in my opinion, in August of 2009.
1. The failure to obtain 5,000,000 which was needed for projects.
2. The failure of the Abundant Renewable Energy, LLC, and Renewable Energy Engineering, LLC, asset purchase. This ended up costing Helix 1,101,322 shares of restricted common stock which was forfeited to 'ARE'.
3. The failure of purchasing Venco Power GmbH, from its shareholders. The additional failure later on in the year of securing a distribution deal with them.
4. Helix getting sued by Ken Morgan, Inventor of Helix's turbine, for breach of his employment agreement, unpaid wages, and related claims. All of these claims relate to Plaintiff’s allegation that he was unfairly forced out of the Company. Ken eventually dismisses lawsuit once Helix pays Ken 150K
5.Ken Morgan/Kevin Claudio/Kadre Kabir/David Gelbaum begin dumping their shares.
6. 2 seperate deals with St. George ends up costing Helix big time due to defaults, penalties and interest.
7. In march, Ian Gardner and Gene Hoffman resign. Ian gardner then files 2 lawsuits described further down in this message.
Scott Weinbrandt gets put in charge. OS currently at 60,895,662.
By now, the company is in complete disarray. You have management fighting with each other. 2 lawsuits filed by Ian Gardner. On April 12, 2010, the Company received a demand letter from legal counsel for Ian Gardner, the Company’s former CEO and a director, 'alleging the Company breached the terms of his Separation Agreement and Release. The demand letter demanded payment from the Company in the amount of approximately $223,000 for monies which Mr. Gardner believes he is owed under the Separation Agreement and Release, which includes approximately $72,000 under his convertible note. The demand letter also included allegations that the Company settled its litigation with Kenneth Morgan without including full payment to Mr. Gardner for $57,000 in damages to which he believes he is entitled to for his unrelated owned entities. In addition, the demand letter alleged that the Company failed to honor its obligations to pay him $94,361 upon the closing of an equity financing resulting in minimum gross proceeds of $1,000,000 when the Company completed the financing described in this report with St. George Investments LLC in which the Company has received only $592,000. The Company has accrued its full anticipated obligation of $166,361 in the financial statements as of June 30, 2010.' Then, on May 21, 2010, a complaint was filed by Ian Gardner, the Company's former CEO and a director, against the Company and a director and officer of the Company 'asserting causes of action against the defendants for breach of certain contracts, breach of the covenants of good faith and fair dealing, fraud in the inducement, intentional and negligent misrepresentation, alter ego and declaratory relief. Mr. Gardner's suit seeks approximately $150,000 in stated damages as well as additional unstated damages. The Company has accrued its anticipated obligation of approximately $95,000 in the financial statements as of June 30, 2010. The Company has denied these allegations. This case is currently pending.'
Bad deals are coming in to bite the company in the ass. Positive accomplishments seem to be erased and forgotten. All sales dry up. Cell phone tower projects? Forgotten. Argentina stuff? Forgotten. Multiple other events? Forgotten.
So, why aren't people buying into this company and it's products? Management, Management, Management! The same way I'm not going to go eat Thai food from a place crawling with rats and roaches, I'm not going to buy a wind turbine from a company that could potentially disappear due to corporate ignorance. What would happen to my purchase if something goes wrong with the company? Not worth the risk. Plus, all the good things that happened before, were accomplished by the people that aren't with the company anymore. If I do business with you and you leave the company for it's bullshit. Guess what. I no longer do business with your old company. When demand is hard to come by, as it is in this industry, it doesn't take a lot to steer somebody in a new direction.
So, between march of '10 to now we have gone from roughly 61 million OS to 1 billion. I thought Scott could handle it, but I was wrong. The damage was too severe for him to fix everything single handedly and he did what he had to do regarding the dilution to keep the company going. Even with the success of the Oklahoma deal, that is, if Helix can deliver on the order, they are still on thin ice. Plus he did get, what appears to be a sweet deal with the whole Philly thing. Although, i would like to know for certain what the real facts are with it. So, for me, that victory still has an asterisk next to it. Now that Scott is gone, having resigned after his contract expired, there is no leader. We have Kevin Claudio steering the ship now. Until they can get another guy in there to run the ship, this company is in danger. I wouldn't do business with a company without a true CEO.
Not to mention, the whole Bluwater debacle and their other lawsuits with Crystal Research Associates, LLC, Alternative Energies, LLC.
Yet, somehow I remain optimistic. They have survived through all of this. Once they get a new CEO, things will change. Once they get their patent, things will change. If they get their their patent. :) Fingers crossed. Afterall, they do have a product!!! Its just being shielded by unfortunate circumstances.
Good luck to all.
