Larry, The wording for S3 financing for the 3rd line (2nd high speed line) which I believe will be received in January, was end of first calendar quarter could very well have been someone's worst case estimate to allow for line 3's product to have been stored and tested by Valence and then tested by others. If they state March and accomplish the goal in February, no lawsuits are likely to be filed.
I doubt if new financing for line 3 has affected the schedules for lines 1 and 2. Again, the document was not intended to provide an accurate status update for the company. The purpose was just to get the financing terms filed with the SEC and , since it was written by attorneys, to warn everyone as SOP that the company may never produce anything so there could never be a reason to by sued.
As you know, the company had a lawsuit hanging over them for many years that was eventually dismissed. Lev was part of that, and its easy for me to understand that he would rather let the attorneys make sure they don't say anything that would open the door for another lawsuit, regardless of how good the situation is. To defend even a groundless lawsuit wastes time, money and energy. We should be pleased that Lev is concentrating on getting the job done. No one should sue, however, if Valence announces the first shipment under a $150 million contract with Energizer followed by similar contract with Motorola.
On the other hand, if Lev states that he has shipped thousands of samples to more than one category of customer, someone may interpret his statement that a contract should be forthcoming within a short period of time. If the testing or negotiations take longer, someone may find this sufficient grounds for a lawsuit, just as posts by Visnik or Darkgreen appear that contain our own words, twisted and thrown back at us for the sake of argument. The argument that follows it usually a waste of time and it would seem better to not have become involved in the first place.
Incidentally, I believe we were at the point of having shipped production samples about 4 months ago and the first semi-automatic but representative laptop samples in May. If a contract wasn't announced by now, someone may have filed a lawsuit.
Of course, there is always the possibility that they may never sell these thousands of batteries already produced and all the additional employees (60 to 270?) will be laid off and orders for additional production machinery canceled because there is no market and no interested customers for the best performing rechargeable laptop and cellphone batteries available currently being mass produced. |
