10k is delayed, but an SB-2/a prospectus filed last Friday has all the audited financials and other info.
sec.gov
Ed got a going concern qualification from the auditor, of course.
Shares outstanding have mushroomed, due to issuing shares to everybody, including Ed's son the lawyer. Seems TFRY doesn't have any cash, so Ed issues certificates, including lots of freely tradeable shares.
TFRY's negative working capital continues to get more and more negative. The solution? Ed says he will issue more shares, just as he has always done.
They claim to have only 5 full-time employees. In fact, the prospectus says that "Payroll and payroll taxes <were> approximately $395,700 in fiscal 2000." Elsewhere, it says that Ed earned $240,000 of that sum. That leaves only $150,000, including payroll taxes, for the four reminaining midgets.
BTW, all those news releases Ed has issued about the company's assembly operation are rubbish. This one, for example in February: "This move [to New Hampshire] will improve our ability to build our production models..."
Well, contrary to the implication in that newsrelease and others, TFRY in fact doesn't have an assembly operation. What it has is a contractor in New Hampshire who is supposed to do the production of 25 units except that TRFY again doesn't have money to pay them. That follows up on an earlier contractor who did the tooling. Nothing wrong with using contractors to manufacture, IMO, but the news releases are certainly spun to be deceptive about this.
Here are excerpts:
We have not and do not intend to establish our own manufacturing operations. We
will continue to be dependent upon third parties to manufacture our machines and
Products, including the potato product. In June 1996, we entered into a
manufacturing agreement with a local Pennsylvania electronics company to
manufacture the machines. We previously had an agreement with Premier Design,
Ltd. ("Premier"), a company owned by a former director, Harry Schmidt, to
manufacture the machine.
At a cost of approximately $270,000, Tasty Fries' unaffiliated contractor
has completed the tooling necessary to produce the machines on a commercial
basis. In November 1999, the Company raised
$274,000 through a private placement of its securities. The Company earmarked
those monies for payment to the contractor.
We have experienced delays in completing our tooling process because of lack
of funds to support the program and some distributorships have been cancelled or
reacquired.
and this
In the Spring of 1996, Premier and Tasty Fries agreed that Premier would be
unable to manufacture the machines under the terms of the Premier Amendment. On
June 17, 1996, we announced our intention to award the manufacturing contract
for the machine to S&H Electronics of Robesonia, Pennsylvania ("S&H"), an
unaffiliated third party, and subsequently entered into a non-exclusive
manufacturing agreement with S&H for such purpose. S&H is a
contract-manufacturer which specializes in the assembly and testing of
electromechanical assemblies and equipment. Subsequently, the contract was
cancelled. In January, 2000, we opened an assembly facility in Portsmouth, New
Hampshire and are hiring sub-contractors to produce the first 25 units. The
first 25 units will be produced by subcontract manufacturers located in
Portsmouth, NH.
Oh, by the way, the prospectus is to sell millions of shares of stock to repay a loan due June 30, which the company took out to settle a lawsuit last fall. Did Ed mention any of this in a news releases? |
