polliesboy at last count this company had 40 employees not 60. And simply by reading their financials and looking at all the lawsuits filed against them so far this year you can clearly see there are financial issues here.
Do you know how to read financials?
From 2006 to 2007 revenues increased $398,319.
Labor costs increased $276,921
General/administrative costs increased $224,505
In other words ERUC spent $501,426 for that $398,319.
Their cash position at the end of the year was $18,448. First Q 2008 losses were $294,002.
Cash on hand at the end of Q1 2008 was $3,996
ERUC does not have sufficient cash to cover losses. As a matter of fact they were not even in the ball park. ERUC lost $1.2 million last year and they have an accumulated deficit of over $7 million.
They are in very a poor financial condition. That is clearly shown in their financials. They are in desperate need of funding. They will either have to raise the A/S and do a convertible debanture deal or they will have to put up their assets for a loan.
What other options do they have? Have you not seen all the lawsuits filed against them? Advertisers, medical supply companies, former employees, landlords, the KC center, looks like an office supply company also.
It appears as if bills aren't being paid polliesboy. Don't kid yourself about employees. People work for money. I'm sure salaries are the first thing ERUC pays as their revenues are sufficient to cover salaries but not a whole lot else.
For example in 2007 after covering labor costs ERUC would have had $816,106 left to pay $2,088,038 worth of bills. In other words they had to raise over $1.2 million in order to cover losses.
Although there is one former employee suing ERUC for damages that resulted from a dispute on overtime pay I would guess ERUC is paying salaries and from the looks of the lawsuits they aren't keeping up with the general/administrative costs. That would signal a cash crunch in my opinion and something that needs to be corrected very quicky.
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