Alterras Systems Inc (fka ASIUQ)

[upshegrows]

the current reality is factually and materially different from your rose coloured glasses scenario:

their current direct product costs and labour costs sum to a number that exceeds their current level of sales. Yes, sales can expand and cover this but there are other quarterly expenses that are yet to be accounted for;

a)project development ..............................$125K
b)G&A ..............................................$90K
c)Executive salary as it's being accrued ...........$128K
d)Interest on debt................................. $112K

other concerns;

a)only have $36K in cash in the bank
b)accounts payables of $2M vs. receivables of $45k
c)$5.3M in negative shareholder equity

(* These are prior to recent debt conversions, however the majority of the debt conversion was actually accrued salary commitments being converted to equity. It created greater that 50% dilution to shareholders)

d) they are already in breach of the covenants on the loan given to them through their first banking relationship.
e) there are currently $380K in legal claims against the company.
f) they don't own any visible unencumbered assets.

This isn't subjective thinking. It's a statement of facts taken directly from their presentations. They have an ugly balance sheet, limited financial flexibility at the moment to fix their machine let alone expand and the one bank that has provided past funding holds them in default for breaking their covenants just months after providing the loan.

It's not good at the moment. Plain and simple.