Replies to post #87000 on Koil Energy Solutions Inc. (KLNG)

[spec machine]

My impression was that the arbitration (with former FT shareholders) was on the "cash adjustment" portion of the closing only.

In simple terms, when the closing takes place there are at that moment in time inventories, work in progress, materials, A/R, A/P, cash on hand, and a host of other items to be valued for the cash adjustment portion of the purchase. The contract specified arbitration if the parties arrived at different valuations of those items to arrive at a mutual agreed adjustment.

I'm basing that on my earlier read through the attachment to the filing. I would ordinarily dig back thru it and post excerpts to make sure I got it right, but I'll be out most of today and just don't have the time right now.

Maybe someone can confirm and parse it out for the board. If not I'll try to do it this evening.

[mauiguy2]

Unfortunately, this vague arbitration issue is another one of those examples of DDI's lack of forthcomingness (is this a word? I don't think so!!) with shareholders. We're left grasping at straws and making guesses. Perhaps Steeve Haag can enlighten you regarding this issue. Ha!

OK, in this situation, because of the ongoing arbitration case, I can truly understand why this information is not made more public and it is indeed "quiet". But, I just dislike how DDI has a history of briefly mentioning issues without expanding on them. The daily 13K penalty is another example. This subject was tossed out to shareholders last Summer, but management said nothing more about this extremely important topic until yesterday. It was a very poor decision by management not to inform us earlier that the penalty period ended on December 31. Meanwhile, the PPS absolutely got annihilated while management stood by silently.

DDI needs to make adjustments in how they deal with shareholders. The PPS has fallen from 2.35 to .10. The lack of confidence in management by shareholders is one of the factors.