A long boring post (tm me)
What is a "reverse trade show?"
"Prior to accepting the position of Chairman and CEO, Mr. Brumfield ... paid for himself and Greg Firmbach, the Company’s President and the manager of all sales activities, to attend a reverse trade show in Florida."
"Dr. Poteet assured him that the Company could produce a device that met the needs of its clientele." Love it! What's held them back til now?
"When Mr. Brumfield accepted the position of CEO the first order of business was to begin research and development for the fourth generation of the ValiMed medication validation unit. For the first time the company had the potential to develop a product that was designed with the end user’s needs in mind."
So much for ELF, then. Admission that it never DID have the end users' needs in mind. I know, I know, the company was LochHarris then, but over time LH was effectively bought lock stock and barrel and renamed, that's all.
4.9 Description of Assets - Values: The major assets of the debtor are its inventory, office and manufacturing equipment, patents and trademarks. Debtor believes the current value of the assets is approximately $373,824.00. Debtor has products in various states of completion with interested prospective purchasers of finished products which will, in the opinion of management of the debtor, allow the debtor to become profitable and increase the value of Debtor’s stock.
And supporting that "opinion" is 4.11 Source of Information: The source of the information presented is the Chief Executive Officer, Jeffrey Brumfield, and Chief Financial Officer, Stephen McCommon. No projections with numbers are included or referenced.
Information regarding the "various states of completion" is ... also not included. Imagine that. All that's noted is "Debtor continues to prepare its products for final testing prior to sale in the market."
Makes it sound as if buyers are chomping at the bit to be the first ones to purchase this latest hot cdex technology. He doesn't say for "potential" or "expected" or even "hoped-for" sale ... just "sale." Maybe Brumfield could disclose how MANY are lined up, checkbooks at the ready. Of course he wouldn't give their names -- confidentialty and competitive advantage and all that -- but saying how many (1-3, 4-7, 8-10. 50-75 etc) wouldn't compromise anything.
4.15 Future Management of the Debtor: The Debtor expects that the current management will continue to manage the business post confirmation. Compensation to be paid as follows: Chief Executive Officer $10,000.00 per month plus housing allowance and normal company benefits and Chief Financial Officer $6,200.00 per month plus normal company benefits.
How 'bout zee CEO take zero reimbursement for the foreseeable? Other CEOs in comparable positions have done so. But no, Mr. Brumfield wants his "stipend" of minimal direct comp and also a housing allowance (how much, Mr. Brumfield?) plus "normal" company benefits (and just what is "normal" in your workforce of three (excluding your good self but counting your son, if I've added right, Mr. Brumfield?)
4.19 Baxa Corporation Monies: Prior to the bankruptcy filing, Baxa Corporation (“Baxa”) intended to fun $200,000 into Debtor’s business as an investment in the equity offering under the Term Sheet and pursuant to the Escrow Agreement ...
Same typo as in earlier version! I bet Baxa IS having some fun watching this play out!
My eyes blurred after reading the above. I assume the same fuzzy, vague language salt and peppers the rest of the submission.
Plus ca change.
