ELSI<-----------During the nine months ended September 30, 1999, existing battery
orders and contract work have not been adequate to sustain the
Company on an ongoing basis and the Company continues to be
dependent on cash payments from Kamkorp and its affiliates to
continue operations on a day-to-day basis. As of November 15,
1999, the Company has not met its obligations to pay certain monthly
operating costs including building rent, corporate liability
insurance premiums, worker's compensation insurance premiums,
telephone billings, property tax payments, employee health insurance
premiums, equipment operating leases and numerous smaller operating
costs. The Company anticipates that funds will be available from Kamkorp
in an amount sufficient to alleviate this problem; however, Kamkorp is
not obligated to provide additional funds, and there is no assurance
that the funds will be forthcoming. The Company has approximately
$750,000 of outstanding accounts payable greater than 30 days past
due, most of which is payable to raw material suppliers, some of
which date back to June 1998. Certain of these vendors have
hreatened legal action for non-payment of invoices. One such vendor
sued the Company in May 1999 for approximately $12,000 and the
suit was settled in the third quarter. Another vendor sued the
Company in October 1999 for approximately $12,000 and this suit has
not yet been settled. |
