Just a bit more digging and I can't stop laughing.
This has to be about as close to bankruptcy as a company can get. I almost can't believe some of the stuff I've read in their latest 10-Q It really makes you appreciate the movie "boilier room."
In addition to the information I've posted below, contained in the recent 10-Q is a significant discussion in regards to the NASDAQ and proceeding involving "delisting from the Nasdaq exchange" it appears that ELSI has fallen below the minimum listing requirements for the NAS and one of the only ways they have rectified this is to sell stock. Its quite interesting and I recommend anyone interested in this stock from the long side to take an hour and really read the 10-Q. At times it reads like a horror novel, and at others it reads like a comedy...
Peace
Jetter
>>>>>>>>>>>>>>>>
ELSI keeps getting more and more interesting: Chrysler cancels their contract from their recent 10-Q: edgar-online.com
The decrease in sales to Chrysler and Lockheed Martin is the reason
for the lower revenues in 1999 as compared to 1998. Approximately 30% of the
1999 and 27% of the 1998 battery sales, were to Chrysler
Corporation. These purchases were for testing and evaluation of
the Horizon battery in the EPIC Minivan Program. Chrysler
announced its decision to use Nickel-Metal-Hydride batteries in
its electric minivan for the 1999 model year. Any significant
sales to Chrysler for the remainder of 1999 and sales beyond this
period are uncertain.
More terminated agreements and contracts from the same 10-Q
SMH Automobile S.A. ("SMH"), which terminated its
contract with the Company in mid-1998 and a reduction in work on
the Fiat Auto ("Fiat") program associated with the current
shortage of raw materials. In addition, the Company incurred
approximately $200,000 of costs in the first quarter of 1998 on
improvements in manufacturing processes and joint research and
development efforts with Corning Incorporated ("Corning"). This
program was terminated by Corning in mid-1998. Research and
development costs are expected to remain at approximately the
same level throughout 1999.
Looks like ELSI is having trouble paying its bills, as evidence from more findings of its recent 10-Q…
The Company was sued in October, 1999 by a vendor for
approximately $12,000 for past due invoices, attorney's fees and
court costs. This lawsuit has not yet been settled.
The Company was sued in May, 1999 by a vendor for approximately
$11,000 for past due invoices, attorney's fees and court costs. The
Company has subsequently paid the amount due the vendor, including
attorney's fees. The lawsuit was dismissed.
And now it appears that ELSI is printing shares to pay for costs, including rent and occupancy expenses, from the same 10-Q
In addition to the disclosures under that Note, in December 1997,
the Company issued 299,304 shares of Common Stock to BDM as
partial payment for past obligations owed to BDM for occupancy
related costs (which the Company has accrued) and as prepayment
under operating leases for manufacturing equipment which are
guaranteed by BDM. The number of shares issued was determined
based on the fair market value of the shares at the date of the
agreement ($2.56 per share). When the shares are sold by BDM,
the proceeds will be used to satisfy these past and future
obligations. If the proceeds from the sale of such shares are
not sufficient to satisfy the obligations, the Company will issue
additional shares of Common Stock or pay cash to BDM to make up
the deficiency. BDM has agreed to reduce amounts owed to it by
at least $1.00 per share or $299,304 for the shares issued. BDM
will retain any overage from the sale of such shares in excess of
the amounts owed. Additionally, the Company has agreed to pay
$300,000 to BDM (for the remaining unpaid occupancy related
costs) from the proceeds received from any fundraising activities
completed by the Company before March 31, 1998 in excess of
$5,000,000, which did not occur. As a result of this transaction,
a Common Stock subscription receivable of $467,663 was recorded.
The Company's closing market price as reported by Nasdaq on
November 10, 1999 was $1.00. BDM has not notified the Company of
an intent to sell such shares in the near term; however, unless
the value of the Company's Common Stock improves, based on
current market prices of the Company's Common Stock, additional
shares of Common Stock or cash will be required to settle these
obligations under the terms of this agreement.
Significant capital expenditures will be required in the future
to further automate and achieve consistency in the production
process; however, such expenditures are not expected to be
significant in 1999 to satisfy current battery orders. There were
no significant capital commitments at September 30, 1999.
A few more things that make you go hmmmmm...
Can't wait to read their latest quarterly report. DOn't know how it will top this last one..
FWIW... All information that has not come from ELSI's latest 10-Q is my own opinion and not meant for investment advice....
Cheers |
