Replies to post #24121 on Viaspace Inc (fka VSPC)

[tommy 9 fingers]

Looks like VGE may have actually bought a pellet machine and who exactly got $75,000 at Ionfinity???? I wonder if Carl or Kevin was one of those non controlling

Liquidity and Capital Resources



The Company’s net loss for the nine months ended September 30, 2012 was $6,374,000. Non-cash expenses totaled $808,000 for the nine months ended September 30, 2012 primarily due to stock options and stock compensation expense. The Company recorded a loss on deconsolidation of VIASPACE Green Energy of $4,969,000 for the nine months ended September 30, 2012. The Company recorded a loss on the disposal of assets of $3,000. Related party, net, used $52,000 of cash for the period. Cash used by changes in operating assets and liabilities remained constant. Net cash used in operating activities for operations was $646,000 for the nine months ended September 30, 2012.



Net cash used in investing activities was $396,000 for 2012. Capital expenditures of $84,000 were incurred by VGE for equipment used for its GKG business and $8,000 for equipment in its framed artwork business. At September 30, 2012, VGE made deposits of $144,000 for an additional land lease site in the PRC which requires a prepayment of the first five years of lease. VGE received $1,000 from proceeds from the disposal of fixed assets. There was a reduction in cash on deconsolidation of VGE in the amount of $161,000.



Net cash used in financing activities was $25,000. The Company made a distribution to Ionfinity noncontrolling interests of $75,000 in 2012. The Company also received a loan from Director Kevin Schewe of $50,000 related to a Loan Agreement.



The Company has incurred significant losses from operations, resulting in an accumulated deficit of $49,334,000. The Company expects such losses to continue. However, on September 30, 2012, the Company entered into Loan Agreement with Director Kevin Schewe whereby Dr. Schewe will fund the Company up to $1,000,000 over the next five years. As discussed in Note 2, the note to Changs LLC does not have to be paid. The Company expects loans from Dr. Schewe and contracts from the sublicense to GKG to fund the operations for the foreseeable future. The Company expects to continue as a going concern.