Replies to post #1944 on Just some board

[learner1156]

KNOS - Just in case you didn't see it (may still be a good buy, I don't know).

Posted by: stockmasterflash Date: Wednesday, October 15, 2008 9:13:08 AM
In reply to: None Post # of 176

KNOS ceases operations

Friday, October 10, 2008
Kronos Advanced Technologies shuts down
By Mass High Tech Staff


Kronos Advanced Technologies Inc., a maker of air movement and purification technologies in Belmont, has “curtailed operations and reduced its workforce to the fullest extent,” in response to the receipt of a notice of default by investor AirWorks Funding LLLP.

According to executives, Kronos Advanced Technologies (OTCB: KNOS) continues to be in discussions with its secured lenders regarding the outstanding obligations under its secured promissory notes and the company’s future operational plan. The secured lenders have indicated that they do not intend to provide Kronos any additional funding pursuant to the secured promissory notes or otherwise, according to a statement.

According to regulatory filings, Kronos Advanced Technologies secured more than $18 million in funding though a secured loan agreement with AirWorks and other investors in June of 2007. At the closing, the company received an initial advance of $4,259,000. As of April 1, 2008, Kronos had repaid an aggregate of $628,000 of the principal of the loan from AirWorks and another investor, Hilltop Holding Co. LP, and the entire principal amount of notes issued by other investors.

As of Oct. 1, 2008, the outstanding principal amount of the AirWorks promissory note was $3,526,135, with $507,482 of overdue interest. The outstanding Hilltop principal totaled $1,047,425, with $28,106 of overdue interest. The company has not received a notice of event of default with respect to the Hilltop promissory note.

The company was initially founded in 2000 and funded by the U.S. military to develop electrostatic air movers. Eventually the company moved into the consumer air purification business.

According to the company’s last annual report, the company had 15 employees in June of 2007 and generated $160,000 in revenue with a $2.3 million loss for that year.