Sergio,I'm sure you saw these "At March 31, 1998, the Company had outstanding 9% Convertible Debentures due July 1, 2002
(the "9% Convertible Debentures") in the principal amount of $2,299,591. The Company was not in
compliance with a required interest coverage ratio of 2:1 (actual of -3.1:1). However, the holders of
the 9% Convertible Debentures have granted the Company a waiver effective through June 30,
1999. After that time, the Company will be required to be in compliance with the following financial
ratios, so long as the 9% Convertible Debentures remain outstanding: working capital of at least
$1,000,000; minimum shareholders' equity (net worth) that will be calculated based upon the
earnings of the Company and the consideration received by the Company from issuances of
securities by the Company; an interest coverage ratio of at least 2:1; and a current ratio at the end of
any fiscal quarter of at least 1.1:1. Interest on the 9% Convertible Debentures is paid by the
Company on a monthly basis. Monthly principal payments of approximately $20,000 are required
to be made by the Company beginning in July 1998 through July 2002. Management believes that
the fulfillment of the Company's plans and objectives will enable the Company to attain a sufficient
level of profitability to be in compliance with the financial ratios or alternatively, that the Company
will be able to obtain an extension or renewal of the waivers; however, there can be no assurance
that the Company will attain any such profitability, be in compliance with the financial ratios upon the
expiration of the waivers or be able to obtain an extension or renewal of the waivers. Any
acceleration under the 9% Convertible Debentures prior to their maturity on July 1, 2002 could
have a material adverse effect upon the Company."
What do you see in this company? I see profit margin has incresed and sales expense is down,but so are sales..
The above was from POOR's 10QSB filing.. enjoy the movie.. Kenny |
