Saleen Automotive, Inc. (fka SLNN)

[BigBake1]

That seems to be the problem, along with operational costs that far exceed what they are bringing in. Top that off with owed payroll taxes and very bad debt taken on and well it is no wonder they turned to an OTC shell. They leveraged the $500,000 assumed debt with a specific S7 car, so that asset is sitting there collecting dust. Some of the issues from the last filing:

As of September 30, 2013, we were in default on $825,251 of unsecured notes payable. While we are in discussions with the note holders to arrange extended payment terms, the initiation of collection actions by these note holders may severely affect our ability to execute on our business plan.

We have incurred an accumulative loss of $12,321,745 since inception. In addition, we had a stockholders deficit of $7,149,519 as of September 30, 2013, and as of that date, we were delinquent in payment of $553,991 of payroll taxes and $825,251 of outstanding notes payable is in default. Our cash resources are insufficient to meet our planned business objectives without additional financing.

There is more like Mr Saleen collecting $20,000 a month in pay for example, when your company is hurting this bad one often turns down the excessive pay when the business is not doing well. But not this guy, apparently he has grown accustomed to his lifestyle.

The S7 Program has flopped, the cars although nice looking are not flying off the shelf. Nearing $600,000 for a fully loaded supercar in an over saturated market in this economy has diretly impacted this company.

This thing is burning money so fast it will be lucky to sustain another 3 - 6 months at this point. Of course it could go even faster if those defaulted notes go to court.