Elio Tells Sec It Has Lost $53m So Far

[pistonboy]

The first phase of the ATVM loan is complete and they are in phase two, due diligence. Wouldn't series E proof of mpg have to have been submitted during phase one? Can EM still submit series E proof of mpg this late? Perhaps the decision would be based on computer simulations.

 

[pistonboy]

Again, these are personal finances. I suspect big business finance has differences. I saw the head of Fiat, which purchased Chrysler, comment they were done no favors by the US government because their loan to buy Chrysler, came from the US government at 19% interest. Someone could probably make the argument that the rules of personal finance would preclude such a loan, but it was not.

I am not saying anyone is correct or incorrect. I am saying the world of big business finance (especially when the government is involved) is very different from personal finance, which is all we are familiar with.

Well lets see, 19% on a loan for a dime on the dollar of value really isn't too onerous. It works out to less than 2% of value.

I believe the federal government wanted Ford to buy Chrysler but Ford declined. If it was such a good deal, Ford would have done that. As I understand, Fiat purchased Chrysler for their distribution system by which Fiat could sell their car through. Ford already had their distribution system.

The value of a business is determined by how much money the business produces. If it makes no money it has no value except for its assets. The assets of Chrysler were geared to making cars and not much useful for anything else.

The value of a business is different from the value of personal homes, which produce no income but people need to live in. This is why I say personal finances is not necessarily a good guide for understanding business finances.

 

[Marshall]

I believe the federal government wanted Ford to buy Chrysler but Ford declined. If it was such a good deal, Ford would have done that. As I understand, Fiat purchased Chrysler for their distribution system by which Fiat could sell their car through. Ford already had their distribution system.

The value of a business is determined by how much money the business produces. If it makes no money it has no value except for its assets. The assets of Chrysler were geared to making cars and not much useful for anything else.

The value of a business is different from the value of personal homes, which produce no income but people need to live in. This is why I say personal finances is not necessarily a good guide for understanding business finances.

We can just respectfully disagree then. I see an abundance of parallels. Perhaps some are entirely in my imagination and perhaps not,

 

[outsydthebox]

Here's the link to their current SEC filed balance sheet... http://pdf.secdatabase.com/41/0001214659-16-009658.pdf

Would you be be kind enough to explain & document the "hundreds of millions" of assets as stated in your comment...

If they're holding "hundred of millions" in assets...why would the balance sheet they filed with the SEC not indicate this...their SEC filing indicates they have virtually no assets...and more than $50 million in unpaid debt...

I didn't have to read very far to find "reference." Page 2 under the heading "Liquidity and Capitol Resources" paragraph 2...

....We obtained a forbearance agreement until July 31, 2016 with respect to this note due July 31, 2015, which is secured by a first position in equipment in the Shreveport, Louisiana manufacturing facility.

And on page 4 under the heading: "Sale of excess equipment" Where it says.....

Sale of Excess Equipment. We will not use all of the equipment purchased at the Shreveport facility. Through September 30,
2015, sales of excess equipment has yielded $3,594,019. We will continue to sell excess equipment and use the proceeds to pay down
the CH Capital Lending loan.

I have also copied and pasted page 6. This is EM's unaudited Balance sheet. under the heading, "Current Assets" Please take note of the line, Machinery and equipment net.
Also note the line, Total Assets:

ELIO MOTORS, INC.
(AN ARIZONA CORPORATION)
BALANCE SHEETS
SEPTEMBER 30, 2015 AND DECEMBER 31, 2014
Unaudited
Assets September 30, 2015 December 31, 2014
Current Assets
Cash and cash equivalents $ 117,879 $ 374,652
Restricted cash held in escrow 2,256,762 476,055
Prepaid expenses and other current assets 240,939 104,383
Total Current Assets 2,615,580 955,090
Restricted cash held for customer deposits 5,708,022 4,855,499
Machinery and equipment, net 16,939,299 20,124,788
Facility under capital sublease, net 6,975,000 7,200,000
Other assets 102,193 74,966
Deferred offering costs 105,130 -
Total Assets $ 32,445,224 $ 33,210,343
Liabilities and Stockholders' Deficit
Current Liabilities
Accounts payable and accrued liabilities $ 5,736,021 $ 4,420,104
Customer deposits 1,060,950 913,700
Advances due to related party 342,389 344,827
Interest payable, current portion 2,591,910 2,122,942
Note payable, net of discount 543,729 1,600,000
Notes payable due to related party, net of discount 10,607,281 -
Total Current Liabilities 20,882,280 9,401,573
Customer deposits, net of current portion 18,545,940 14,852,183
Interest payable, net of current portion 7,095,436 2,241,134
Convertible notes payable, net of discount 2,123,610 -
Notes payable, net of current portion and discount 19,309,654 18,546,911
Notes payable due to related party, net of discount - 10,549,348
Capital sublease obligation 7,500,000 7,500,000
Total Liabilities 75,456,920 63,091,149
Commitments and contingencies (see notes to financial statements)
Stockholders' deficit:
Common stock, no par value, 100,000,000 shares authorized,
25,077,500 shares issued and outstanding 15,075,433 15,075,433
Convertible share options 1,331,941 -
Accumulated deficit (59,419,070) (44,956,239)
Total stockholders' deficit (43,011,696) (29,880,806)
Total Liabilities and Stockholders Deficit $ 32,445,224 $ 33,210,343
See accompanying notes to financial statements

 

[WilliamH]

Please review Elio's must recent SEC filing...you're reading it improperly... http://pdf.secdatabase.com/41/0001214659-16-009658.pdf

Page's 6 & 7 sum up Elio's financial current situation...very easy to read...

Total assets are listed as $32.4 million...

One of assets listed is machinery & equipment at only $16.9 million... If they had to liquidate the machinery & equipment...it's probably worth pennies on the dollar...so little or no true cash value...so Elio's current asset value is probably over-inflated...

Total liabilities are listed at $75.4 million....

Accumulated deficit is $59.4 million...

So...where's the "hundreds of million's of assets you referenced in previous posting ???

I'm really confused.
Why are you here?
If you don't like Elios position and don't think it's a worth while investment, why are you haunting this web site.
Go back to your farm and grow some government subsidized corn.

 

[Grumpy Cat]

I'm really confused.
Why are you here?
If you don't like Elios position and don't think it's a worth while investment, why are you haunting this web site.
Go back to your farm and grow some government subsidized corn.

Because he's...

 

[3wheelin]

Please review Elio's must recent SEC filing...you're reading it improperly... http://pdf.secdatabase.com/41/0001214659-16-009658.pdf

Page's 6 & 7 sum up Elio's current financial situation...very easy to read...

Total assets are listed as $32.4 million...

One of assets listed is machinery & equipment at only $16.9 million... If they had to liquidate the machinery & equipment...it's probably worth pennies on the dollar...so little or no true cash value...so Elio's current asset value is probably over-inflated...

Total liabilities are listed at $75.4 million....

Accumulated deficit is $59.4 million...

So...where's the "hundreds of million's of assets you referenced in previous posting (#41) ???

You can always hope for the worst, I prefer to hope for the best! This could be the year the coin can flip on EM's side or the other. I won't even bother with what's out there and so should you because you and the rest of us have no control over the final outcome! In the coming months, we'll all have a more definitive OPINIONS of how the rest of the year for EM is going to be! Give it a rest and you'll be a lot happier!

 

[Coss]

Can we put this back on track before it goes horribly wrong please.

 

[pistonboy]

We can just respectfully disagree then. I see an abundance of parallels. Perhaps some are entirely in my imagination and perhaps not,

Yes, excellent. We will agree to disagree, and we both hope Elio Motors is successful.

 

[pistonboy]

I hope Stu Lichter, or someone else, is standing in the background as a safety net.