Replies to post #2418 on Windswept Environmental Systems, Inc. (fka WEGI)

[Longdriver98]

I didn't think so either, losses have been reduced. Just need to collect on the A/R to strengthen the cash position. Obviously they can factor those receivables if they need to.

Just need a good size storm...

[printmail01]

WEGI AR DOES include the 7.5/mil that is disputed. Here are direct cut n paste from the most recent filing - link included with page numbers - please feel free to check for yourself. IMO WEGI A/R cant be factored > It is all tied up in lawsuits - IMO I dont think banks or AR factoring firms will buy these receivables unless of course them give them away for pennies on the dollar - I seriously doubt WEGI is going to do that......

http://www.sec.gov/Archives/edgar/data/814915/000114420407027666/v076122_10q.htm
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PART 1 Page 1

Accounts receivable, net of allowance for doubtful accounts of $2,737,041 > 7,463,197
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PAGE 6

CONTINGENCIES - The Company is a plaintiff in approximately 19 lawsuits, including those described in the Notes to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2006, claiming an aggregate of approximately $7,500,000 pursuant to which it is seeking to collect amounts it believes are owed to it by customers, included in its accounts receivable, primarily with respect to modifications to its scope of work. The defendants in these actions have asserted counterclaims for an aggregate of approximately $1,500,000.
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Item 1. Legal Proceedings

We are a plaintiff in approximately 19 lawsuits claiming an aggregate of approximately $7,500,000 pursuant to which we are seeking to collect amounts we believe are owed to us by customers that are included in our accounts receivable, primarily with respect to modifications to our scope of work. The defendants in these actions have asserted counterclaims for an aggregate of approximately $1,500,000.