One quick look and most of us would conclude ELSI is one of the worst companies we've seen from a fundamental stand point. What else can you say? This was a sub $1.00 stock not too long ago and look what we have now...
Here's just a bit of the digging I've come up with. Very pitiful. I hope to report back with some more information, specifically with regards to a company ELSI is reported to have done business with, Worldstar Comm. Its very interesting how little information is actually available about Worldstar and how difficult that company has made it for individuals and customers to find. On preliminary findings, one could very easily assume that Worldstar communications does not exist.
Of course all of this is just my personal opinion and personal findings. Good luck. enjoy.
Jetter
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From ELSI's latest 10-Q on November 9,1999
tenkwizard.com
The Company's cash balance decreased from $207,246 to $5,844
during the nine months ended September 30, 1999, as a result of
operating losses in excess of equity sales.
More from the same 10-Q saying the company is bankrupt…
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.
Recent dilution of stock in the same 10-Q
The Company sold 800,000, 1,300,000, and 680,000 shares of Common
Stock to Kamkorp for $1.00 per share in the quarters ended March
31, June 30, and September 30, 1999, respectively; participants
in the Company's stock option plans exercised options for 51,000
and 11,000 shares of Common Stock in the aggregate for a total
consideration of approximately $80,000 and $17,000 in the
quarters ended March 31 and June 30, 1999, respectively.
More from the 10-Q on how ELSI shut down battery production for 3 of the quarters because of lack of demand.
Costs and Expenses. Total costs were significantly lower in the
three and nine months ended September 30 , 1999 compared to the
three and nine months ended September 30, 1998. Manufacturing
costs were lower in 1999 primarily due to savings associated with
the non-production of batteries in the three quarters such as
lower utilities, consumables/equipment and hazardous waste
removal costs, etc.
October 8, 1999 8-K listing the resignation of Earnest & Young
Ernst & Young, L.L.P. resigned as auditors of the Company
effective August 11, 1999. A majority of the members of the Audit
Committee of the Board of Directors voted to accept the
resignation.
The reports of Ernst & Young on the Company's financial
statements for the years ended December 31 1997 and 1998
contained an explanatory paragraph regarding uncertainty as to
the Company's ability to continue as a going concern.
More dilution. A November 3, 1999 PR stating the fact that ELSI granted 3,000,000 stock options to Kamkorp, their majority shareholder, for $1.00. Its important to note that these securities are not registered with the SEC and are not to be offered or sold in the U.S.
Austin, Texas (November 3, 1999) - ELECTROSOURCE, INC.,
(NASDAQ: ELSI) announced today that it has granted options to
purchase up to 3,000,000 (three million) shares of its common
stock at a price of $1.00 per share to Kamkorp, Ltd.,
("Kamkorp"), its majority shareholder, a privately-held company
headquartered in the United Kingdom. The options expire as to
2,000,000 (two million) shares in six months, 500,000 (five
hundred thousand) shares in nine months, and 500,000 (five
hundred thousand) shares in twelve months.
The securities have not been registered under the Securities Act
of 1933, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.
For further information, contact B. E. Jay at (512 ) 753 6500.
SOURCE Electrosource, Inc.
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Things that make you go hmmmmmmm. |
