RE:Interesting companyI agree that the technology looks promising, but I have serious doubts about the financial viability of this company :
1) The company is desperate for cash to finance expansion, but they are in default on their loans, not a good combination !
2) The company has negative working capital of $13M. How much longer can the Chairman keep bailing them out ? He may be running out of money. The latest financial statements state that Blyumkin is selling personal assets just to pay back his loan to the company.
3)There is no independent verification of the costs of production, just the estimates, and I don't think the company is very good at estimating. The demonstration extraction plant was estimated to cost $9M. Current cost = $15M and counting !
4) The latest estimate for the processing costs is $28. But does this include all the royalties the company has to pay ? I see no mention of these:
- 8% production royalty to the lessor which may be increased to 12.5%
- 2% gross royalty to the inventor
I don't think the stock is worth any more than 50 cents at present, tops..
Prof