Replies to post #4083 on Saleen Automotive, Inc. (fka SLNN)

[FredVestor]

You keep saying that, but without supporting your assertion. Every single indication we have points toward bankruptcy has their only option. So please explaining why and how there is another option?

You say that people asserted bankruptcy for a while now and that the fact that it didn't happen yet is somehow an indication that it wont, but that's a misconception. SLNN should have taken the road to bankruptcy a while ago, but they keep getting poison loans. these loans are no good for investors. They don't change the direction the company is heading toward. They are only changing the timeframe.

Again, please explain what is the other option for SLNN?

[AutoInvestor]

Saleen's 10Q verifies bankruptcy is imminent:
Key Data from Q3:
1) Cash $7K - not enough money to pay for inventory to build 2015 Mustangs or anything else.
Cannot pay bills or make payroll

2) ST Liabilities $5.6M - with $7K in the bank all this debt will go delinquent
and the creditors will force Saleen to declare Bankruptcy

3) Inventory $91K after deducting $250K for an old 2009 S7
Not enough inventory to build new Mustangs this inventory is old and includes aftermarket parts and apparel.

4) COGs 89%- Even if Saleen sells a car they are only contributing 11%
to overhead. No profit potential. The cars are being sold for less than the total cost to make and sell.

5) Customer Deposits = $914K up $829K from Q2- this is how Steve made it through Q3.
He used his new customer deposits to cover payroll. Probably some Tesla deposits he picked up at the Concourse de Elegance in Pebble Beach.
These customers will never see their car. They will sue Saleen or the Ford / Chrysler/ Dodge Dealerships
to refund their deposits. The dealerships will sue Saleen.

6) Payroll Tax delinquency- the government will finally
End the allowance of unpaid payroll tax and they will
liquidate any assets they can to collect.

The end for Saleen is very near.
These comments are my opinion.