So hard to limit it to one question. I posted seven questions for PennyGuru a while back when he requested them, but I doubt any of those will be asked. I reposted them below. But if I could only ask them one, it would have to be number 1 provided both followups were able to be asked and a straight answer given to all parts of both:
1) Will any member of the management team of EXPH stand up before the shareholders right now and commit to publishing a PR for public distribution that the company will NEVER again ask for either an A/S increase for any purpose whatsoever or a R/S for any purpose whatsoever?
Follow – up to inevitable BS and hedging from management.
Yes, there could be a legitimate request for an R/S in order to apply for listing on a major board, but will you commit right now to publishing you will NEVER ask to perform that R/S without every single share ever issued by the company in every single class, including those in certificate form, those held by P/P, 100% remaining shares in the company treasury and those un-issued shares in the A/S being equally treated as to both the reduction in number and the new valuation?
Yes, there could be a request for an A/S increase to perform an acquisition. But will you agree to publish a PR for public distribution that you will NEVER again request an A/S increase in order to sell shares either in private placements or on the open market to raise operating capital?
2) What are the current outstanding totals of the company’s “personal loans” to Glenn Harrs and JD Brown? What is collateralizing these loans currently? When will these loans be repaid in cash, in full?
3) Bank by bank, please outline all current open credit lines with the total amount each has available, the total amount outstanding on each and whether or not the credit line(s) have been signed off on by company management as personal guarantors. Please specify the names of company management responsible as guarantor(s) for each line of credit. Please indicate if there are any plans currently underway to shift the full responsibility of these open credit lines from the management entirely to shareholders or if that is even possible given EXPH’s current balance sheet.
4) Are there any current plans to reduce management staff, executive salaries or perks in order to get the general and administrative costs of the company under control?
Follow – up to inevitable BS and hedging from management
Yes, I understand that JD Brown (and perhaps others) are reputedly not currently collecting salaries but those salaries are simply being retained and will be subject to future distribution, most likely with interest. They are in reality simply a constantly accumulating future obligation of the company, possibly interest bearing and therefore a LT liability. I would like to know if genuine REDUCTIONS to executive and managerial salaries, management personnel and executive and managerial perks such as fully paid health insurance, etc will be made, WHEN they will be made and if a percentage of any intended reduction has been taken into consideration to bring G&A expenditure percentages more into line with company earnings?
5) What is current guidance based on the original $9M to $11M gross sales projection from earlier this year? It has been suggested from the very sparse data available that a number closer to reality for 2010 would be $5.5 to $6.0 million in total revenues with overall losses between $1.2 and $1.5M. What is management’s response to that? What are the current revenues within 10%?
6) A past PR that could well have been considered a “material event” had been released announcing a buyout of Southern Candle. Then the event simply failed to occur and no further mention was ever made or any PR in the way of an explanation to shareholders was ever released. The spin off of ETC was handled in much the same very unprofessional manner by management. These material events being announced and then casually dismissed with limited or no explanation opens the company to charges of share price manipulation or “pump and dumps”. Is there a specific plan of action management intends to take to prevent these type of occurrences from happening in the future yet to still provide shareholders with current, reliable updates through PRs and general releases on their website?
7) The vast majority of EXPH PRs or announcements are worded in what appears for all the world to be a purposefully vague manner. These PRs seem intended to present the reader with multiple interpretations, usually with diametrically opposed or different meanings. Is there an intention by management to begin to state directly the purpose of future PRs in clear, concise, unmistakably direct language with the intention clearly stated? There is still plenty of room for disclaimer in such a PR without it's meaning being so distorted, doublespoken and disengenuous as to confuse the reader as to intent.
IMHO.
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