Not looking very good here and just one big set up of the normal pink crud, AS increase, RS with conversions after protecting value of insiders or "financiers". About all you have left here is the pumping of the so called "bottom" (the entrapment of more bagholders) and repetition of ticker statements (and "agrees") with the selling into the short term spike and minimal trading.
Not really much to instill confidence overall and that share structure and future financing will get addressed (obvious now why a company went into the low level otc), and in all probabilities nothing good for current "longs". But a given that one can get sporadic blips in short term trades if one can catch in the minimal opportunities and sell when the maximum statements of whoopee's and yells of "chart bottoms" (that is when the selling really is from the retail that bought for the 20+ percentages gained from the retail that buys at the top or hype).
Well they are still operating in the red @ 180,000 this quarter they have increased operating costs by $65,000, most of it was due to Salaries and wages an increase of nearly double to $53,000 this quarter compared to the same quarter last year. Rent and Sales commisions seem to have soaked the rest of the additional operating expense increase compared to the same quarter last year. Over all a Loss of $405,411 for the last 9 months of operations.
AS is nearly maxed out, the share structure needs attention, a raise in AS will put this down and out. It is time to cancel some of the ridiculous amount of control shares sitting in Tony's hands.
At least they have acquired $423,000 in a loan apparently, they have $73,000 in deposits and a little over $237,000 in current assets with cash, recievables and inventory. Sales increased 8.1% when compared to the same period last year.
Now to the potentially bad:
Quote:
A promissory note with a bank matured on June 1, 2012 and remains unpaid. The note is secured by substantially all of the assets of the Company. The bank has agreed to provide the Company additional time to seek alternative financing arrangements as described below.
The Company rents its main manufacturing facility and corporate offices from a Limited Liability Company, (“LLC”) owned by an officer and director of the Company. The mortgage is secured by the facilities, as well as, personal property of Earth Surfaces and a personal guaranty of the owner. Under the terms of the rental agreement the Company will pay all mortgage payments, real estate taxes, and any related sales tax as rental.
As of September 30, 2012, the Company is delinquent on rental payments and the LLC is in default of its bank mortgage agreement. The bank has brought legal action against the LLC, however, on July 16, 2012 the Company entered into an agreement with the bank, relating both to the promissory note and mortgage whereby the Company will pay the bank reduced monthly payments and the bank will defer various legal remedies. The intent of the agreement is to provide the LLC and the Company additional time to seek alternative financing arrangements.
The property used by the Company has been sited for various county code violations. Company management is working with the LLC and county officials to gain compliance. It is estimated by management that modifications required to remedy the violations will cost approximately $25,000 and will be incurred by the Company.
The current compliance date is November, 23 2012 and will require an extension. Management believes that county officials will support its extension request.
And if that is not enough:
Quote:
The Company is in arrears on its payment to Federal and State taxing authorities. The outstanding amounts are included in its accounts payable on the financial statements. No legal actions have been taken by the taxing authorities to date. However, the Company has received a notice to levy on November 5, 2012 for $27,751. Management has begun discussions with the taxing authorities to negotiate acceptable payment terms until it can seek additional financing to pay these past due amounts in full.
And while you are at it lets just sink the ship completely by negotiating with a loan shark:
Quote:
On August 14, 2012 the Company signed a commitment agreement under which Lambro Ventures, LLC (“LLC”) agreed to purchase common shares for up to $600,000. The LLC is owned by George Lambro, who together with 2 associates owned a significant portion of the Company’s convertible notes that were converted to 292 million shares of common stock during the quarter.
Evidencing the transaction, Lambro wrote 2 checks to the Company both of which were not honored. Management has determined that this group has been responsible for the recent promotion of the stock and the high level of trading volume leading to a significant decline the the stock price. The LLC has not closed on the transaction and management believes that it is unlikely that the transaction will occur. Management is evaluating if it has legal or regulatory remedies against the LLC and Lambro.
Yet you will hand over shares to morons but you guys will not hold a shareholders meeting and see if you can raise the cash from long term shareholders here.. makes perfect sense....
But at least they are trying to get legit cash:
Quote:
On October 19, 2012 the Company signed a consulting agreement with Pyrenees Investments, LLC to assist it in seeking other qualified investors. Pyrenees is a financial consulting and advising firm that provides business and financial advice and also introduces companies to investment bankers, brokerage firms, venture capital firms and others who may be able to provide financing to companies similar to CCAJ.
This however does not sound like a good idea
Quote:
The Company has opened discussion with another potential investor, as well as, continuing to seeking out other potential capitalization.
Avoid seeking out these OTC financiers, toxic florless financing is going to eventually cost you the whole business in the end. Take a look around and notice how the SEC is now suspending these companies due to the illegal financing that occurs here daily in this marketplace.
AI
