Monday, November 19, 2012

10Q is out! Financing in Next Six Months?

Our business continues to improve. We increased licensed penetration and executed new agreements to install additional systems. We received new patents during 2012 that we believe substantially strengthen our issued patents and ability to protect the competitive advantage of our licensees. We increased our technology development efforts and expanded our technology portfolio by pressing forward with new processes designed to further enhance the profitability of our licensees. We reduced our debt by about $3.5 million and produced operating income of about $2.7 million during the nine months ended September 30, 2012.

As of November 14, 2012, there were 53,519,036 shares of common stock outstanding.
Cash at beginning of period $1,364,994.  Cash at end of period $1,679,887.
Increase of cash over period: $314,893.
"In addition, future results may be improved by the impact of event-driven systems integration contracts as we continue to receive significant interest for our engineering and other services in connection with the design, construction, integration and modification of corn oil extraction systems and other new systems for existing and prospective licensees. We are currently party to a number of such agreements which can be expected to contribute to revenue during 2012."

Operating expenses during 2012 included a $0.8 million reversal of a valuation allowance realized during the period and about $1.8 million in legal costs, of which about $1.0 million was accrued and not paid during the period, as well as $0.3 million in research and development costs. By contrast, operating expenses during the first nine months of 2011 included about $0.8 million in professional fees. Our increased legal costs during 2012 were incurred primarily in connection with our ongoing litigation for patent infringement and the completion of amended agreements with YA Global.

We owe about $26.6 million in debt to YA Global and its assignees and about $3.8 million to related parties. Our debt to YA Global matures on December 31, 2012, and our debt to related party lenders matures on June 30, 2013. In February 2012, we entered into an amended agreement with YA Global pursuant to which we agreed to begin servicing our debt to YA Global with cash payments of about $1.6 million during 2012 to supplement equity conversion. We have paid YA Global a total of about $0.6 million in cash during the nine months ended September 30, 2012. We are currently in discussions to refinance the balance due to YA Global. If necessary, we plan to enter into agreements for a short-term extension of the associated maturity date pending completion of any such transaction. Repayment of the balance of these obligations in cash has been and remains an important objective for us, and we hope to complete a financing within the next six months to refinance and recapitalize all of our remaining convertible obligations
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SkunK


7 comments:

nobody12378 said...

The above can be read as:
Of this late date we have no new financing on the horizon, we hope that YAGI will extend until we do. I read that as hopes and wishes and it says nothing about YGAI's willingness not to call the note of this now very valuable company. And people wonder why a company with all this potential is selling for less than a nickel -- because that is all it is worth until someone signs on the new financing dotted line.

Anonymous said...

Every year greeenshift has a large debt due at the end of the year. Every year they pay some off and renegotiate the loan into the future. Every year some argue that this is the year they will fail to renegotiate the loan. Every year they do.

I have lived through this too many times to get excited over it. Once again they will renegotiate and once again some will move on to some other terrible worry.

Yes it is part of the GERS risk portfolio. But a small part in my opinion.

GLTA

by techguess said...

ok,

what has changed is that the business model seems to have been validated...the company needs to solve the debt problem...

what IS the share structure??

Anonymous said...

currently in 'settlement' discussions to refinance????

Anonymous said...

ya, maybe debt to yagi supercedes income to clean tech. think about that, MORON.




by techguess said...

how many shares exactly are available for trading each day.....

is it the 18 million number??

Anonymous said...

i count only $275k converted under all the YA subdivided debentures.

 
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