Replies to post #8381 on ERF Wireless, Inc. (ERFB)

[Indica]

Anyone in the Houston area? He also sent this. Seems pretty open and transparent:

Any time you have a question please email me and I will try to answer. In addition, if you are ever in the Houston, Texas area you have an open invitation to come by our headquarters in League City and kick the tires.

[ars_2014]

LOL! Cubley never answered my simple question via email but he gives you a cry me a river email?

try again Cubley, the facts are all in "YOUR HISTORY," this is nothing but a try to cover my you know story all done by him. He has never had an up year or ever made money for stockholders. All lies to dilute and reverse split which FINRA won't approve anymore.

All documented history of your deceitful lies are with the SEC & FINRA.

Read all my postings & do your own DD

Very questionable lie that will be investigated soon:

Dean Cubley - CEO
Thank you, Greg. Well, I am impressed our stockholders are listening and sending in additional questions. So I just received a question here about one of the questions we answered. I’ll read it aloud here. This came from stockholder who said you mentioned the convertible debt was issued in conjunction with the handling of the expenses associated with Schlumberger arbitration case. However you also previously stated in numerous occasions so the ERF Wireless law firm interpret on a contingency basis. Thus no expanse to ERF Wireless unless it received an award, this is very conflicting. Can you disclose the actual expenses that were associated with Schlumberger case?
Well, the stockholder is exactly right, our law firm did take the case on a contingency basis they booked over $2.5 million against that case they had to document it for the court, but obviously what is not understood but this question is there is a lot more than just attorneys involved in the three year arbitration. First of all, there were three senior attorneys or judges that had to be paid split between the two parties that was several hundred thousand dollar, some of the experts alone were hundreds of thousands of dollars over the course of the hearings. All-in-all the attorney fees were a majority of these spends but not a vast majority. We spent I would guess and I am doing this just from top off my head, but I would guess we spent only aside from the attorneys in the range of $1 million. I don’t know Greg would that be a reasonable estimate/
R. Greg Smith - CFO
Yes and the attorney professional fees, counted to expert witnesses et cetera and when you go back and look at 2013 results, it was in excess of a million for those categories. I think also to point out to the shareholders that are not familiar and kind of followed the Company since the 2009 timeframe when we entered into that exclusive contract with Schlumberger as you would all call 2009 was the year in which oil and gas drilling activity dipped by basically 50% and so as we move through and performed against that three years exclusive contract, we literally incurred millions of dollars worth of cost that’s reflective in and really the financial profile and with that position that the company is in today. And that was cost incurred to build up a fleet of mobile broadband tower tailors, fleeter of trucks to execute on that contract as well as the footprint that we put in place to execute on that contract.
So it’s more than just the cost of the arbitration, it’s the cost of bad debt that we put in place to execute on that contract and obviously for those who have voted know that the Company did not benefit financially numeration on that contract despite the millions of dollars that were spent executing on it so, water under the bridge at this point, we’re focused on moving forward and increasing market share in the market that we were letting Schlumberger lead us on that exclusive contacts, we’re executing on our own at this point.

[Ghart]

Thanks for the post. Here is a e-mail response I got:

Gary,

What I told you before is still correct. As noted in a previous PR the payoff of toxic debt is our highest priority. Nothing has changed and I would still use the same words that I previously used to describe its status.

Dean

Ok, so they got the 2.5M to refinance the balance sheet and choose to payoff other debt before the convertible debt and now won't have anywhere near enough money anytime soon to payoff the roughly 1.25M in toxic debt hence screwing the shareholders with endless dilution that will probably end in the hundreds of millions O/S by the time it's over.

So you tell me, were we lied to when he says the "paying off the toxic debt is our highest priority" ??

[ars_2014]

Hey Cubley, since you couldn’t answer my simple question in my first email to you but was able to have your people post a ‘cry me a river’ fake email respond coming from you to cover your lies since you now know you are being investigated, I will cover (below) your lies and document everything for soon to be law suits and let my source at SEC know what’s happened. The more you open your mouth, the more LIES come out. I also now have 3 stockholders that I’m communicating with and we are actively putting our case in front of the Authorities and soon to be law suits. Keep having your Klan sell shares using NITE & CDEL, you are digging your grave, not me!! Read below and sleep tight crook!


Thank you for your interest in ERF Wireless, Inc. As you are likely already aware ERF Wireless, Inc. is a small wireless based business with its headquarters in League City, Texas and has approximately forty employees serving oil and gas customers primarily in Texas, Louisiana, New Mexico, and Oklahoma. We have had in excess of $7M in revenue the past two years so it is safe to say that we are a real operating company and not a “shell” company as some of our distractors are fond of saying. Our stock has seen constant downward pressure for the past year or more due to a small number (try 3 years of diluting & reverse splits, just 2014: 60,415.67% increase YTD dilution: from 85,500.00 TO 51,740,894.00 not including soon to be another dilute, whose fault is that?) of convertible debentures that the company has from earlier periods when we needed to raise approximately $1.5M in extra cash to pay the expenses of a contract arbitration with a very large company(SLB) that we had contracted with in 2009. I take full responsibility for making the decision to borrow the money in an attempt to complete the arbitration and receive a significant award. Unfortunately the outcome of the arbitration was that neither side take anything so we were left owing the borrowed funds and have been able to repay a portion but not all of the convertibles to date. The downward pressure will likely continue until we complete the repayment of all of the convertibles by either cash payments or their conversion to stock. Both of these have been happening over the past weeks and months.

As far as the management decisions I take full responsibility. However, you mention the perceived “price manipulation” and I fully reject that any such manipulation exists on the part of myself, the company, or anyone associated with the company.(so diluting has not been the reasons why this debacle ytd?the facts are when Cubley keeps diluting, stock will keep tanking. No brain needed for this) I buy some stock personally(private purchase, controlled, not open market) to show my support of the company but do so directly from the company to remove the potential that my purchases could be construed as influencing the open market(that’s just it, buying in the open market is normal public company process which he does a controlled private purchase, paying himself first, buying in the open market is taking same position as retail investors, look at any public company buyback, all open market, not private purchase from your Angus trust, will be exposed soon). No one in my family other than myself , to the best of my knowledge, even owns any of the ERF Wireless common stock.(why shouldn’t they buy up the stock, don’t they believe in their father’s company which they’re lenders to?or they’re just sellers, converting paper, then selling. Strange, you would think at this price and market cap valuation, they would be out buying as much shares they can get their hands on? Ask yourself that) I hold the voting proxy to most of the preferred stock(you hold voting to all, remember last reverse split vote? public knowledge he was the only vote for last reverse split) in ERF Wireless but do not own any myself and the preferred stock does not trade in the marketplace. If there is any manipulation of the ERF Wireless stock then in my opinion it is coming from outside sources and neither the company or anyone associated with the company(complete lie, he is diluting, this dilute is being sold in the open market, you are the source, it's a fact, he’s just trying to cover his you know what from the SEC who is investigating him and his scam for the last 3 years) has any control or visibility into its source. I would guess that any such concerns will quickly disappear with the complete elimination of the downward pressure on the stock.

My plans for the near-term future of the company are to attempt to continue to optimize our operational business model to both grow the business and improve our margins while also seeking to take advantage of new opportunities that we see in our oil and gas marketplace.(same line, same lies last 3 years documented, just go read my posting or their pr on their web site) At the same time, we will continue to attempt to eliminate the artificial downward(artificial? You created this artificial downward by every Friday dilute, do you not recognize that?) pressure that the convertibles present as available funding allows. I cannot guarantee a specific timeline for these events, as many shareholders would like, but can guarantee that these objectives will remain our major focus.

If you have additional questions I will be glad to answer to the extent that SEC Selective Disclosure Rules permit. Everything I have told you here is already in the public realm from previous filings.