To anyone new to LOTE. It's JUNK.
As of August, the company had only $950.00 in cash, $26,000.00 in Accounts Receivable, and $95,000. in inventory. They somehow were able to borrow $450.000. in September in order to stay afloat. The share float is 125 Million, with shares outstanding of 235 Million, after the most recent reverse split.
If you look on their website, you'll find that they only offer 22 items for their Men's line and 24 items for their Woman's line of clothing. Not much of a selection. You can't generate a lot of sales with such a limited selection. Also, note the prices of what they offer. Really stupid, unless you're Justin Beiber or Miley Cyrus.
That said, there have been clothing companies that have succeeded, but this one has shown no real evidence of financial success thus far. They entered into a Bloomingdale's deal, but that's just 36 Bloomies, plus their 13 outlets. They did not mention being in any Macy's stores, which owns Bloomingdales. I'm wondering why not. So far, it looks like this company is on life support and just hoping for a miracle. They keep borrowing from Peter to pay Paul.
Their latest 10Q showed revenue for the 9 months ended June 30th of $300K, and expenses for the same 9 months of $565K. On August 30th, they entered into an Unsecured Convertible Note debt agreement of $350K, and on Sept. 9th they went back to the well and did another Unsecured Convertible Note with a different lender for another 100K. They've also been issuing shares to raise cash to pay off other debt they've had. You'd be smart to review their latest 10Q on 8.19/13, where they also issued the following statement in their Plan of Operation comments. To Quote:
"Plan of Operation
As of June 30, 2013, we had $949 of cash on hand. We incurred operating expenses in the amount of $565,207. during the nine months ended June 30, 2013. These operating expenses were comprised of general and administrative expenses, professional fees, and directors’ and consulting fees, and other miscellaneous expenses.
Our current cash holdings will not satisfy our liquidity requirements and we will require additional financing to pursue our planned business activities. We are in the process of seeking equity and or debt financing to fund our operations over the next 12 months.
If we cannot generate sufficient revenues to continue operations, we will suspend or cease our operations."
There are really only two people on this message board, with one of them pumping this every 10 minutes (, whom we can only assume is desperate to recover his losses.
IF YOU DECIDE TO TRADE LOTE, THINK ABOUT IT AGAIN, AND AGAIN, AND AGAIN. REVIEW THEIR 10Qs AND THEIR 8Ks. THIS SCREAMS DANGER!!
