Latest On Production Date: Q4 2016

[Ekh]

I keep reading the doom and gloom forecasts put out by some of the other people on here.
Much like a junk yard dog with a venison haunch, they have latched on to the $1.6 mill R&D debt owed to IAV and are tearing at it till they get the marrow out of the bone.
They must have missed the payment agreement of $115,000 / mo which will dispose of that debt.
I'm surprised that they haven't gone crazy over the $9.85 Million note that has a forbearance agreement until 7/31/16.
Come on guys. This is just like any other big business deal. They are spending money that the don't have and writing promissory notes to cover expenses until they get a cash flow going. It isn't like putting money in your piggy bank until you have the full amount of your anticipated expense.
Maybe like the mortgage you probably had / have on your house. It was a long term loan with a payment schedule.

I missed that agreement. That should solve the problem, at least temporarily.

 

[Ekh]

William, overall I agree that they're doing just what every cash-starved startup does. The thing that bothers me is the horrific interest they're paying to RACER trust and a couple of others. I've forgotten the precise details, and am too lazy at the moment to go look it up again, but I do remember reading the disclosures and saying "OMG, this is as bad as credit card debt and for much larger amounts!" And all because they missed their first payment. OUCH

 

[WilliamH]

I missed that agreement. That should solve the problem, at least temporarily.

Under Liquidity and Capital Resources on page numbered 20 (or pdf doc page 23) for reference.

-------> http://pdf.secdatabase.com/1407/0001214659-15-006359.pdf <---------

 

[WilliamH]

I disagree. I think it entirely possible that DOE is waiting to see if Elio has "the real stuff" to make funding them worthwhile. In which case, it's a good thing they're waiting, and not a "switcheroo." It is possible, possible, I say, that EM actually requested DOE to sit on it a while til the case was more strongly made,.

........"It is possible, possible, I say, that EM actually requested DOE to sit on it a while til the case was more strongly made,".......
I suppose it's possible, but I can't for the life of me understand why anyone would repeatedly poke them self in the eye with a sharp pointed stick and do so much damage to their business reputation.

 

[Rickb]

RickB, the geo motor isn't the motor in question. The motor they may still have available was the one the was started, and received some testing, in February. I thought my post had made that abundantly clear. Guess not. So I have edited it to be absolutely specific.

Thanks. I didn't know EM had an IAV engine in their possession and recalled that first engine was tested in the IAV test facilities to freezeup/destruction.

 

[BADBOY]

No new news though some clarification from PE, http://m.ksla.com/ksla/db_350562/contentdetail.htm?contentguid=BgNycaaW

So production is closer due to clearer understanding of finances because $30,000+ rather than the $25k expected and...that pushes production back 6 months? uh what?

 

[Rickb]

I think we could say that the problem has been caused by the DoE and their old switcherroo. Call and imply that they want Elio to apply for a loan and then drag their feet for over a year. A year to review is not a reasonable amount of time. It's more like an attempt to destroy a company by jerking them around.


post edited to remove some inflammatory commentary

I don't agree with your opinion of the DOE, but respect it nontheless. My opinion is that the DOE needs to see the "real stuff". Also, I don't agree that there have been many if any doom and gloom posts (possible doom & gloom regarding the DOE) just meaningful discussion while we wait on real progress.

 

[BADBOY]

So in a few months, the SEC should approve their application, then they'll be raising much more money. Having spent my professional life in IT, the idea of whooshing deadlines (you know, the sound they make as they go past) is not unknown to me.

no they will be raising the $25 million the $30 m crowdfunding indicates they can get. That is only enough to build the 25 test cars; nothing to do with actual production other than completing a needed step.

 

[WilliamH]

I don't agree with your opinion of the DOE, but respect it nontheless. My opinion is that the DOE needs to see the "real stuff". Also, I don't agree that there have been many if any doom and gloom posts (possible doom & gloom regarding the DOE) just meaningful discussion while we wait on real progress.

What is the "real stuff" that you speak of?
We know that Elio passed phase 1. That was the qualification stage.
(I think that was in October or November as I recall.)
We have no idea what or where in phase 2 Elio is.
And phase 3 is supposed to be final negotiations.
Sorry, but much as I would like to be able to, I just don't trust Washington, DC bureaucrats.

 

[RUCRAYZE]

Is there any question that $25 m-30m will actually come to pass.??? Every day of delay, folks won't pay (nice alliteration)
As they say "talk is cheap" seems to me when folks gotta fork over the $, might be a heap of pull-back.