Sec Filings

[slinches]

Neat, a submersible version of the Elio. Take that amphicar owners!

Seriously, if they were in real financial trouble, we'd have heard about it unless it happened in the last few days.

 

[AriLea]

- Unregistered sales of 10 percent or more of outstanding equity securities

That is interesting. There is a case where they don't have to report? Is that per sale or accumulative? I'll assume the later.

 

[Samalross]

That is interesting. There is a case where they don't have to report? Is that per sale or accumulative? I'll assume the later.

I believe it is per each SEC filing. There is probably someone here could confirm or correct me.

 

[Bookly]

Seriously, if they were in real financial trouble, we'd have heard about it unless it happened in the last few days.

The SEC filing for Sept 30 2016 showed Elio Motors was basically out of cash. Activity since then reflects that. Most observers would conclude that is "real financial trouble".

 

[slinches]

Then why have we not seen a 1-U filing stating that they are out of cash and unable to pay for continued development? That would need to be filed within four days of that happening.

 

[Samalross]

Then why have we not seen a 1-U filing stating that they are out of cash and unable to pay for continued development? That would need to be filed within four days of that happening.

Their last filing stated that they might have to curtail operations unless they got new funding. No need to add anymore information until next filing.

 

[RSchneider]

Their last filing stated that they might have to curtail operations unless they got new funding. No need to add anymore information until next filing.

It looks like they curtailed but did not cease. Makes sense because when you already have plenty of debt, it's pretty hard to keep going when the cash in the bank reaches zero. With the reservations they keep getting, that has to be enough to pay for the website and someone to monitor the social media feeds. It's when the new reservations become zero is when you know that you have to cease operations.

 

[slinches]

They are required to file a "Current Events" 1-U statements within 4 days if any of these things happen:

- Fundamental changes in the nature of the business
- Bankruptcy or receivership
- Material modification of the rights of security holders
- Changes in the certifying accountant of the issuer
- Non-reliance on previous financial statements or a related audit report or completed interim review
- Changes in control of the issuer
- Departures of the principal executive officer, principal financial officer or principal accounting officer
- Unregistered sales of 10 percent or more of outstanding equity securities

I think having to stop or curtail operations would fall under that first item.

 

[Samalross]

[They have not curtailed operations,t hey still are taking orders,running their facebook page and accepting reservations.I am not sure if their report on Colorado will count.QUOTE="slinches, post: 180523, member: 5947"]They are required to file a "Current Events" 1-U statements within 4 days if any of these things happen:

- Fundamental changes in the nature of the business
- Bankruptcy or receivership
- Material modification of the rights of security holders
- Changes in the certifying accountant of the issuer
- Non-reliance on previous financial statements or a related audit report or completed interim review
- Changes in control of the issuer
- Departures of the principal executive officer, principal financial officer or principal accounting officer
- Unregistered sales of 10 percent or more of outstanding equity securities

I think having to stop or curtail operations would fall under that first item.[/QUOTE]

 

[RSchneider]

Fundamental changes in the nature of the business could mean:
-Producing hats instead of cars
-Starting up a new dot com
-Opening an Italian restaurant

How much work you are doing today as compared to a year ago is subjective, so it doesn't really count. Maybe the reason for publishing things about the lights, manufacturing processes, fenders and performing customer service by answer questions like "If you put wings on the sides of the Elio would it fly?" is a way to show everyone that they are still working hard. For all we know, they might be building 20 E series cars right now or just hanging out at a Starbucks using the free WiFi and posting press releases. We don't know.

Again, Elio needs to surface with something to make the reservation holders, Shreveport and stock holders happy. If you check, there's been lots of Elio volume today and the price is going down. So, Elio needs to calm the masses.