Post by
ecabrera333 on May 03, 2024 11:39pm
Ault Alliance Cash Crunch Adds To The Worry
On April 30, 2024, Milton C. Ault (aka Milton Todd Ault III) announced to the SEC that Ault Alliance promises to pay on May 17, 2024, a loan (Promissory Note), acquired on April 29, 2024, of USD1,550,000 plus 10% interest.
A company paying high interest of 10% and above on a loan for only 18 days shows lack of free cash flow. It also shows that Ault Alliance is not backed by banks anymore as promissory notes offer companies a credit source after exhausting other options.
Do keep in mind that the interest on this loan must be paid by future revenues. As we know, Ault Alliance net losses increased 21% last year, climbing from USD 183M in 2022 to USD 233M in 2023. Another stock dilution is easily predicted.