Posted by: Eyes Open
In reply to: None Date:5/22/2007 10:05:58 PM
10QSB says SWRI has defaulted on loans. It seems that the we have been looking at the summary of the complete 10QSB. Someone at the yahoo website has done an analysis of the full filing.
messages.finance.yahoo.com.
The post says the following.
Here is the link to the full SEC filing.
yahoo.brand.edgar-online.com
Highlights of the 1st quarter:
CEO Mr. Sens managed to make sales of $309 in the first quarter. That is down from $590 a year earlier.
The lady in the hot dog stand downstairs makes more than that in 1 day.
"In the quarter ended March 31, 2007, operating expenses were $412,886." As compared to "operating expenses for the quarter ended March 31, 2006 of $228,010." So Mr. Sens doubles the expenses but halves the revenue.
On Note C " (a) During the first quarter of 2007, the Company was in default under the terms of this note. As such, the holder of the note exercised its right to increase the face amount of the note by 10%, being $78,000, as a penalty." Not only is the company now in default of a loan but the stock holders are paying 45% interest! Sub prime lenders don't charge as much. Hell, not even loan sharks!
The company has only $475.00 in cash.
The current liabilities "Cash disbursed in excess of available funds $24,091.00" He is writing bad checks to the tune $24K
As a stockholder you shouldn't fret... you also owe Mr. Sens $154,988! Mr. Sens, as the only employee, still manages to over pay himself as this nugget shows. "Additionally, the total payment the Company remitted exceeded the total balance due to the Company’s President in the amount of $42,951 during the year ended December 31, 2006."
The best one of all can be found on Note C. "15% note payable, monthly interest payments, principal due June 2007, collateralized by land. $645,000" At 10 cents a gallon of water he needs to sell 6,450,000 gallons before June 2007 just to satisfy this loan. That shouldn't be hard for Mr. Sens since he sold 3,090 gallons in the first quarter. It will require only a 208,738% improvement on performance.
Will SWRI declare bankrupcy before June 2007? Or will the company further dilute stockholders equity...As this quote shows "In order to improve the Company's liquidity, the Company is actively pursing additional debt and equity financing through discussions with investment bankers and private investors."?
Stay tuned...it is going to get interesting soon |
