One thing i think we can agree on is the wish to see our ECOB investment prosper - paper profit good for me so far –hope so for you as well !
Ball Park sales/forecasts touted around so far got nowhere near predictions made –even management accept this fact, think they recognize they might need a Plan B or C!
One would hope that MRL will continue to provide financial support as they have rather a large stake in the company as highlighted by your cut & pastes. The company is also apparently keeping its options open to go elsewhere for loans – using assets as security/collateral –that’s ok whilst the asset cake is large enough to go round!
No doubt the CEO will have already have sorted something out –cash flow not great but lots of inventory to sell!
regards Gerry
“If current and projected revenue growth does not meet Management estimates and proceeds received from MRL are insufficient, the Management may choose to raise additional capital through debt and/or equity transactions, reduce certain overhead costs through the deferral of salaries and other means, and settle liabilities through negotiation. Currently, the Company does not have any commitments or assurances for additional capital, other than MRL, nor can the Company provide assurance that such financing will be available to it on favorable terms, or at all. If, after utilizing the existing sources of capital available to the Company, further capital needs are identified and the Company is not successful in obtaining the financing, it may be forced to curtail its existing or planned future operations. The Company has significant inventories on hand and anticipates it will soon generate profits and cash flow from turns of sales and or contracts already on the books. The Company has already taken steps to reduce expenses. As of first of January the Company has also increased the sales price of the Eco Red Shield coatings as applied to finished good lumber sales. The Company believes that it now has gained good traction in the market place with our technology therefore can command a higher premium which will equate to greater margins and increased cash flows. “
