Replies to post #4707 on Windswept Environmental Systems, Inc. (fka WEGI)

[RichieRich49]

Why all of the buying today, the 10K was awful, revenue down 68%. I expect it to go back down tomorrow.

[printmail01]

We have been unable to make required monthly payments on our notes due to Laurus and have only obtained short-term waivers with respect thereto.

We currently have outstanding notes to Laurus which include the original convertible note in the current principal balance of $5,730,028 due June 30, 2009, and three non-convertible notes, in the aggregate principal amount of $600,000, due January 12, 2008. Since January 1, 2007, we have been obligated to make monthly payments of $100,000 to Laurus with respect to original note, applied first to interest and then to principal. The payments due January 1, 2007 through March 1, 2007 were made by virtue of partial note conversions into our common stock by Laurus in the amounts owed. With respect to the payment due on April 1, 2007, a partial conversion of the note was made to pay the interest due and a portion of the principal due. For the payments due May 1, 2007 through August 1, 2007, partial note conversions were made by Laurus to pay only the interest portion of the monthly amounts due. With respect to the unpaid principal payments due for April 2007 through August 2007, as well as the full payments due September 1, 2007 and October 1, 2007, we have received, on a monthly basis, waivers from Laurus. Should Laurus not grant a waiver with respect to the prior amounts or the monthly payment of $100,000 due on November 1, 2007, then on November 1, 2007, we will be liable to Laurus in the amount of $554,651. Should the waiver not be granted, it is highly likely that we will be unable to make full payment of the amount due and therefore risk being in default and having all the Laurus loans called for immediate payment. As Laurus has a security interest on all of our assets, such a default would have a material adverse effect on us.


In addition, the non-convertible notes held by Laurus bear interest at a rate of 17.5% per annum, payable monthly, as to which, as of September 27, 2007, we are $37,309 in arrears.


We are also obligated to Spotless Plastics (USA), Inc., an affiliate of our previous majority stockholder, under a $500,000 variable interest rate promissory note and an accounts receivable sale agreement in the amount of $189,197. We have not made payments on the note or pursuant to the sale agreement.