Replies to post #220 on Aqua Vie Beverages (fka AVBC)

[Bird of Prey]

Frank,

Must I drive the nails all the way in? I guess so.

From the filing:
In April 2001, the contract manufacturer commenced production under the terms of
the Shipping and Security Agreement and began shipping product to major grocery
chain accounts in Southern California. Subsequently, the Company increased it
sales and marketing efforts. Due to production difficulties, the contract
manufacturer halted production under the agreement. The Company has informed the contract manufacturer of the Company's intention to
seek redress in the amount of $385,700 to compensate the Company for a
production shortfall and quality assurance problems. The Company has submitted
portions of this claim to the contract manufacturer and has reserved these claim
amounts, which have not been entered into the books of the Company and do not
affect the financial statements as submitted in this report. To date, this claim
and the issues on which it is based, remains unresolved, and the Company is
considering alternative settlements. Management believes that these issues can
be resolved to the parties' mutual satisfaction.

I have highlighted the relevant portions.
Let's walk through this shall we?
IN APRIL,2001 - that means sometime during the month of April...Not March or February or May.
COMMENCED PRODUCTION - Bottling started.
BEGAN SHIPPING - product sent to stores.
DUE TO PRODUCTION DIFFICULTIES, THE CONTRACT MANUFACTURER HALTED PRODUCTION UNDER THE AGREEMENT - Bottling stopped. It does not say temporarily. nor does it say the production was resumed.
TO DATE, THIS CLAIM AND THE ISSUES ON WHICH IT IS BASED, REMAINS UNSOLVED - as of this filing nothing has changed, production remains halted and AVBC is still seeking redress as of the date of the filing JUNE 21, 2001!


Now where do I get 7 weeks of no production from?
Production was halted in April, could of been early April, could have been late April. I choose to give the benefit of the doubt and use late April as the end of production. Because this was filed under the heading "SUBSEQUENT EVENTS" the statement "TO DATE" refers to June 21, 2001, therefore production has not resumed as of that date. 51 days divided by 7 is just over 7 weeks.


David Weed
aka the Bird of Prey
www.warp-drive.com