Purchase of BeAtHome is a red flag.
From a recent 8k filing( edgar.sec.gov ):
On January 31, 2002, the Company acquired all of the outstanding capital stock of BeAtHome.com, Inc. (“BeAtHome®”), a Fargo, North Dakota based developer of remote management system hardware and software. The results of BeAtHome’s operations, as well as a one-time charge of $400,000 related to in-process research and development (“IPR&D”), have been included in the consolidated condensed financial statements since that date. As a result of the acquisition, the Company expects to integrate certain components of BeAtHome’s technology into its current and future product offerings. The Company believes these enhancements will allow customers to more easily aggregate and process information from remote LONWORKS networks, thereby increasing overall network management capabilities. In exchange for all of the outstanding capital stock of BeAtHome, the Company paid approximately $5.9 million, comprised of cash payments totaling approximately $2.0 million to BeAtHome’s shareholders, the forgiveness of approximately $3.5 million in operating loans made to BeAtHome, and approximately $369,000 of third party expenses.
Looks like ELON might have been "forced" to buy
out its customer BeAtHome.
BeAtHome had a $5M operating loss per quarter.
I wonder if the $3.5M in loan was ever counted as
revenue? With the buyout of BeAtHome, ELON's potential
customers here in the states might view ELON as a competitor rather than a partner.
This could partly explain the recent drop in ELON share
price. |
