Replies to post #10876 on Fonon Corp. (fka FNON)

[pitboss22]

No, as I said before, putting aside the company's legal problems it looks as though as they have MUCH LARGER FINANCIAL WOES to deal with.

Yes, they are in DEEP FINANCIAL TROUBLE!


1. They are financially INSOLVENT! Their Current Liabilities outweigh their Current Assets by almost $1.5 million. They owe Steinbock over $100,000 but they only HAD $13,000 in their Cash Account. The company STILL has not paid the farmer what they owe. Plus they have over $1 million in DEBT and Accrued Expenses Payable!

That's bad enough but EVEN WORSE, they have a $105,778 UNPAID OVERDRAFT on their account!!!!

If ANY of their creditors brings suit for payment, the company and its stockholders are SCREWED! Those creditors won't wait forever.


2. The company STILL has NOT shipped ANY barite. The grade of barite that they have stockpiled is NOT ACCEPTABLE to Steinbock and they admit THEY CAN'T FIND ANOTHER BUYER! If it's unacceptable to their "master distributor" and they can't find another buyer, that means it's basically unsalable.


3. As they admitted above, the grade of barite that they have stockpiled is NOT ACCEPTABLE and they further admit that they lack the capability to further refine the barite to even an acceptable grade.

PS.... Admitting they don't have the capability to further refine the barite also means that NO EQUIPMENT IS COMING!


4. They admit that they don't have a qualified geologist and can't afford one so they CAN'T EVEN QUALIFY THEIR LOTS ON HAND!

"...the incremental expense of either hiring an additional staff member or contracting with an outside party to have our lots certified and qualified in lots and specific grades of materials would be significant and cost prohibitive ..... the Company is not in the position to bring on a staff member or incur the expense of routinely contracting with a qualified geologist or an otherwise expert in the field of classification and certification of barite as related to certain grades of qualities..."

As I also said, FACTS can be a real nuisance, can't they? There are plenty more of those "pesky" FACTS too!

BWAAAAAAHAAAAAAAAAHAAAAAAAAHAAAAAAAAAAAHAAAAAAAAAAAAAAAAAAAA!!!!