GREY:SFMGF - Post by User
Comment by
OnTheIceon Mar 05, 2014 1:54pm
101 Views
Post# 22284244
RE:RE:RE:RE: big rebound off the low
RE:RE:RE:RE: big rebound off the low31. EVENTS AFTER THE REPORTING PERIOD
Collection of Aged Accounts Receivable in February 2014
Trade Accounts Receivable and Trade Accounts Payable both increased in the quarter, due to delays in payment for, and shipment of, completed Percofrac 10 units. Another ongoing project concerning a heat recvoery system at a pharmaceutical manufacturer also ran into delays due to cold weather. Collections were slow from November 2013 through January 2014, but improved in February 2014. It is not uncommon for construction project receivables aging to pass 90, and even 120 days.
Sale and Leaseback of Building
In March 2014, the Company expects to sell and leas back its land and building. The Company received several offers for an amount of $ 1,100,000, and has accepted one cash offer supported by a mortgage lender’s offer of financing. Environmental evaluations of the Company’s land are under way.
Legal Action by Mortgage Lender
In January 2014, the mortgage lender filed a motion to seize the Company’s land and building for non-payment of mortgage obligations in the amount of $150,767. This issue is expected to be resolved by the sale and lease-back of the property no later than May 2014. Legal counsel has been engaged. At December 31, 2013, the carrying value of the land, building and building improvements on the books of the Company is $ 627,300 versus the mortgage balance of $ 526,783 plus the accrued interest of $150,767 which is included in Trade Accounts Payable.
Negotiations to Acquire a Company in the Same Industry
Sofame began negotiations in 2012 to acquire a company operating in the same industry. These negotiations have progressed further and an acquisition will occur if the required debt financing can be negotiated. Discussions are under way with several potential lenders. Any concrete developments will be reported promptly.
Well now I start caring about me. I care about legal contracts and I further care about,but certainly not limited to: