FROM ANNUAL REPORT filed with SEC under Regulation S-K and certified by the CEO and CFO subject to personal liability:
Item 2. Description of Property
Our principal executive offices are located at #562 – 800 15355 24 th Avenue, Surrey, British Columbia, Canada, V4A 2H9. (A mailbox in a UPS Store) Our telephone number is (604) 560-1503. The office is approximately 1,650 square feet in size and is leased for a term of twelve months. The lease began on January 2013 and will end in January 2014. Currently we pay approximately $1,500 per month for our office space in Surrey.
and
5. Related Party Transactions
(a) During the year ended May 31, 2013, the Company incurred management fees of $95,098 (2012 - $72,000) and rent of $18,000 (2012 - $nil) to the President of the Company.
Do you trust a company that indicates that their principal executive office is a mailbox in a UPS store in a strip mall but then describes it as 1,650 sq ft (what, the entire UPS store?) in their annual filing and the CEO charges the company $1,500 per month rent for these "offices"?
As part of my DD, I spent time reading all available info at the SEC website. Information that has been filed by the company and, assuming it to be true (despite the proven propensity for management to mislead as above), there are just so many warning signs with this company:
-lawsuits from former employees and creditors
-major deficiencies in internal control over financial reporting as identified on Page 22 of the 10-K
-no capital (despite other posts on here. Read the Framework Agreement with Alstom, they are not throwing $1,000,000 at this at all! Their only contribution is 1.5 FTE (Full time employee) for the duration of the project which has mulitple deliverables that will require financing from Mantra). What happened to the supposed $3,200,000 raised by selling shares in Mantra Energy Sub? Dont see that on the consolidated balance sheet. What I do see on the balance sheet is $28,750 as restricted cash being used to support a corporate credit card? This company cannot even get an unsecured credit card?
-A string of failed partnerships. If you can even call them "partnerships". Really all they are were agreements to explore future development (Mantra gets the press release and sells more stock) and then they flame out when Mantra cannot deliver on their funding requirements. Sounds like the Alstom agreement no?
-The ERC technology was purchased for the equivalent of $12,500, does anyone really think it is worth almost $6,000,000 today because of a patent in India and China? How would this company ever defend its patent from infringement (it has no cash) especially in these foreign countries? Is it going to offer stock to a foreign lawyer as in-kind payment?
-Management wages continue to increase, 2 vehicle leases are added to the balance sheet (for CEO/CFO?) and yet there are no funds available to use for real development of the technology or to pay other creditors or even the license fee for the MRFC that continues to accrue at 10% interest I might add?
I will steer clear of this one thank you. I cannot believe that there are posters here who "believe" this song and dance. This is a public relations company, not a technology company. You are being promoted, plain and simple. Lets just hope you all ascribe to the greater fool theory because when the music stops.......
Good luck to you all.
AI
