New 10Q is up!
Here's what I focused on:
"..." denote Items from 10Q
"Outstanding Shares as of June 30, 2005: 34,183,778"
Float is still 2 million shares I guess.
"However, as discussed in Note 4, the majority of Techone's assets were seized and sold at auction on June 21, 2005 to satisfy certain secured creditors. This transfer of assets has not been recorded by the Company at June 30, 2005 since the Korean courts are not expected to finalize the transfer of assets and payment to the creditors until at least August 19, 2005. Management is negotiating with the acquirer for a lease arrangement to allow the Company to continue operations and use the Techone facilities but no definitive agreement has been reached."
Well, now it looks like we will have to wait until after August 19th to see which direction the stock takes. I will be watching closely. Any buying of significance will note that something positive mouse have taken place in regards to lease, etc. Any selling until then, or until announcement or 10Q (another 3 months), might be a buying opportunity, at least for me! :)
"As discussed above, this transfer of assets has not been recorded by the Company at June 30, 2005 since the Korean courts are not expected to finalize the transfer of assets and payment to the creditors until at least August 19, 2005. Accordingly, at June 30, 2005, no adjustments have been made to the assets and liabilities of Techone until it is determined by the courts the amounts to be paid and which assets were effectively sold. The transfer of the assets and payments of the liabilities of Techone will be recorded during the third quarter of 2005."
Now we have to wait until the 3rd quarter, I hate that!!
"The Company is currently in discussions with the buyer for a possible leaseback arrangement of the purchased building and certain equipment and management is confident that these discussions will be fruitful. If so, operations will continue in the Pyeongtaek facility. At this point, the Company expects to reach an agreement that will require it to pay rent on the facilities and equipment, although the outcome of these discussions in currently unknown."
"Assuming negotiations with the acquirer of Techone's assets (see above) are successful, management expects operating expenses to increase for the balance of the fiscal year due to the operation of Techone. Management plans to raise additional funds to continue and sustain operations of Techone through debt or equity financing."
"Our management hopes to be able to raise additional funds to continue and sustain operations of Techone through debt or equity financing. Management estimates that approximately $1,000,000 will be needed to accomplish these tasks, to continue development and production activities and deploy a new and invigorated sales and marketing effort. Management hopes to obtain such financing in the next 60 days but no commitments have been received to date. If management is successful, the Company also intends to seek additional longer term capital to continue to develop the business and also to pursue acquisitions of other synergistic operating companies in order to develop profitable operations."
I really don't have any doubt that they will get the $1,000,000. Looks like 3Q will be date in which we will see the net/net result of all these issues in the air right now. I am curious as to the acquisitions or other companies.
Patience....Well, I have that. Guess I will see if a buying opportunity presents itself tommorrow.
Any input from others?
Signed - The Hound