I thought Turek said in a PR that PLNI was profitable in 2005 for the first time and they have no debt?
In doing some further review I find that the company is laiden with debt and Losses for many years to come?
PLASTICON INTERNATIONAL, INC.
Notes to the Financial Statements
(Unaudited)
5. Liquidity
As shown in the accompanying financial statements, the Company incurred net losses of $31,276,549 and $73,648,555 for the years ended December 31, 2005 and 2004, respectively. Current liabilities exceed current assets by $4,135,088 and $10,524,995 for the years ended December 31, 2005 and 2004, respectively. Management expects the acquisitions to help improve operations and cash flows during 2006.
6. Notes Payable
Notes payable consists of the following as of December 31, 2005 and December 31, 2004:
Note payable to First National Bank of
Bamesville, Barnesville, Georgia $500,000 2,095,410
Notes payable to Dennis Joslin Company LLC,
Dyersburg, Tennessee, personally
guaranteed by majority shareholder 325,000
Note payable to Export Finance Network,
Coral Gables, FL., personally guaranteed
by majority shareholder 1,500,000
Note payable to Laser Engineering, Fort
Lauderdale, FL., personally guaranteed by
majority shareholder 625,000
Note payable to John P. Murphy (seller of
ProMold, see Note 3), payable over a five
year period in equal installments of
$200,000 and shall bear interest at the rate
of 5% per annum 1,000,000
Notes payable to related parties (see Note 4) 800,000 730,992
Other notes payable 523,509
Total notes payable 2,823,509 5,276,402
Less current portion (1,671,828) (5.276.402)
Long-term portion of notes payable 1,151,681 $
PLASTICON INTERNATIONAL, INC.
Notes to the Financial Statements
(Unaudited)
6. Notes Payable, continued
Future obligations of long term debt are as follows:
2006 $ 1,671,828
2007 551,681
2008 200,000
2009 200,000
2010 200,000
Total $ 2,823,509
The Company is currently in the process of settling the debt with the Bank ofBarnesville. The Company's majority shareholder transferred 7,000,000 shares of his personally held Plasticon International, Inc. stock to the Bank ofBarnesville in order to reduce the debt to $500,000 in the first quarter. Management expects the remaining amount of the debt to be discharged during the second quarter 2006.
The Company restructured its debt with Dennis Joslin Company LLC during the course of the first quarter ended March 31, 2005. As a result of this settlement, the Company recognized income from forgiveness of debt in the amount of $65,303 during the quarter ended March 31,2005.
The Company restructured its debt with Export Finance Network during the course of the first quarter ended March 31, 2005. James N. Turek, Sr. transferred 2,000,000 shares of his personally held Company's stock to Export Finance Network. In addition, James N. Turek, Sr. and the Company have agreed to a note payable in the amount of $85,000. The transfer of these shares and the assumption and payment of this note payable to Export Finance Network will completely satisfy this debt during the course of 2005. As a result of this settlement, during the quarter ended March 31, 2005, the Company reduced the debt by $1,415,000 with an offsetting entry to paid-in-capital.
The Company restructured its debt with Laser Engineering during the course of the second quarter ended June 30, 2005. As a result of this settlement, the Company recognized income from forgiveness of debt in the amount of $440,000 during the quarter ended June 30, 2005 |
