Far from it, he provided larger information than just his own issue, it was a distributor and that distributor could not provide product for it's retail customers. Maybe go back and read his post again as he specifies which distributor cannot get product.
The debt here is not $500,000 per quarter, that is operational costs only per quarter, this company runs $4 million into debt per annum , the operational costs are just half the debt here. I suggest actually digging through the filings to get a better grasp of the situation in ATTD, it cannot pay it's debts, 3 different loans have now defaulted, two bridge loans for a total of $115,000 and now convertible debt for $1.3 million. It gets worse in September when nearly another $1 million in convertible debt comes due along with those three very short term notes they recently acquired for $250,000.
Revenues pay nothing here, they raised a total of $57,000 in revenues for the entire year and when compared to the $4 million of debt charged to shareholder equity it is virtually nothing. But hey when you are a CEO of a Pinksheet company you can have a salary of a sucessful fortune 500 company at $162,000 per year. No worries the other director was paid $100,000 for the year and his daughter receives $32,000 a year. This is clearly not justified.
I suggest also learning more about the convertible debt here, it is not some simple face value plus interest..lol.. It has many conditions that result in favorable returns for the note holders, steep discount rates at share issuance, plus broker/TA fees and plus interest. They are now issuing shares at .0005X and less depending on the loan, just burning through those shares, that is why they are not paying some of these loans currently. That $1.3 million debt alone would nearly max out the current AS and the note holder apparently does not want to negotiate terms again.
So to conclude, revenues here are meaningless, only those who do not see the whole picture think or really hope it is going to result in sucess here. The debt is consuming the company and time has ran out, several note holders do not want to defer or take partial payments, they want their original terms and now the company is defaulting on those terms. The ridiculous salaries here are the largest costs compared to any other operational cost including more than marketing and promotion, a significant issue as it shows what is really important here and it is not the product. The PPS is in the dumps and each Note requires even more shares to pay the final costs.
