Replies to post #32195 on Hangover Joe's Holding Corp. (fka HJOE)

[janice shell]

Using words like 'toxic' however colorful to describe any financing,assumes that the financing will be damaging or destructive.

Not at all. By their nature, floorless convertibles are damaging and destructive. Sure, there's always the chance that the company will by some miracle manage to pay off the note before it's converted and the resulting stock is sold. That, however, would mean the company must come up with the payoff within six months. After that time, any stock converted will be free trading.

HJOE defaulted on its financing arrangement with TCA. TCA sued. The matter was eventually settled when Union and GEL agreed to buy the notes. Now, thanks to its delinquency with required SEC filings, the company is in default on all or most of the notes it's issued.

In the meanwhile, it seems unlikely that any new lender will be willing to step up to the plate.

So unless there's some major development, things aren't looking good.

[GoGoLi]

The filings that are mostly discussed here are very old. I hope to see some new filings soon and I believe the results will be better than I expect. Let's wait patiently. No rush for me.

[I-Glow]

Your assumption that revenue cures all ills is ill-conceived.

In the best quarter HJOE has had in terms of revenue was the 3rd quarter of 2012. The revenue was $386,560 - just from operations HJOE had a Loss of $393,557.

So the revenue generated would not have paid the interest on the convertible notes.

In the last HJOE financials they filed Q3 of 2014 the revenue was $48,516 and the Loss from Operations was $472,182. When you add in the interest you have a Net Loss of $592,346.

If the revenue doesn't cover the operating expenses and interest - there isn't anything left to pay off the notes.

IG