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Sec Form 1-k - June 8, 2018

Discussion in 'Elio Stock Discussion' started by Bilbo B, Jun 11, 2018.

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  1. Bilbo B

    Bilbo B Elio Addict

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    I've been off the internet lately, but don't see this posted anywhere. Elio Submitted an update to the SEC last week. I haven't studied it in depth, but a quick read indicates that July 31, 2018 is a significant target date for a lot of fiscally related issues. If this is already being discussed in a thread I'm not seeing, feel free to delete this.

    The full report is here. Some excerpts that caught my eye as 'new' news in a very quick read:

    * During the fiscal years ended December 31, 2017, 2016 and 2015, we spent approximately $1.48 million, $20.08 million, and $2.09 million, respectively, on engineering, research and development activities. The 2016 increase in engineering was driven by our successful Regulation A offering.


    * On April 24, 2018 a vendor filed a complaint against the Company in the United States District Court for the Northern District of Illinois Eastern Division. The complaint alleges a breach of contract for failure to pay for services provided to the Company between September 2016 and December 2017. At December 31, 2017 and 2016, the Company had $304,515 and $245,956, respectively, recorded in accounts payable related to that vendor. On May 22, 2018, the Company reached a settlement agreement, paying the vendor $83,000 for the full and final settlement for all claims arising from the litigation. (I'm too lazy to try and figure out who this was)


    * On January 1, 2018, the Company entered into an additional amendment to the forbearance agreement with Racer Trust. Under the terms of the amendment the Company shall pay RacerTrust on or before July 10, 2018 $3,934,256, which is the sum of the unpaid monthly amounts and late fees due to Racer Trust. Default interest of 18% per annum continued to accrue as of October 1, 2016.


    * On December 28, 2017, the Company entered into the third amendment with Shreveport Business Park, LLC. Under the third amendment of the leased space shall be reduced by 152,557 square feet effective January 1, 2018.

    As a result of the reduction in square feet, the base rent shall be $211,205. On April 30, 2018, the Company entered into the fourth amendment with Shreveport Business Park, LLC. The terms of the new agreement deferred the monthly lease and lease related charges beginning January 1, 2018 through July 31, 2018. As required by the agreement, the Company made a payment of $387,811 on May 2, 2018 with an additional $1,848,100 due on or before July 31, 2018. The agreement stipulates that monthly payments shall begin on August 1, 2018.


    * Our current bill-of-materials ("BOM") cost and desired profit margin would require a base retail price of $7,526 for the vehicle, which exceeds our current targeted base price of $7,450. Actual BOM costs can vary up or down during vehicle development as engineering changes are made and validated through testing. While we believe that we will be able to bridge this gap through product refinement during vehicle development, supplier negotiation closer to production, and scale economies post-production, we may not be successful as certain costs may be driven by commodity price fluctuations that are beyond our control. This may cause us to increase our base price, which may in turn make purchasing an Elio less attractive. In addition, 36,597 of our reservations have received a "locked" base price of $7,300 and 21,195 have received a "locked" price of $7,000. To the extent that our actual BOM exceeds these "locked" base prices, sales to these reservation holders will likely result in a loss.


    * As of December 31, 2017, we had cash of $7,155 and a working capital deficit of $49,674,327 as compared to cash of $120,206 and a working capital deficit of $42,280,863 at December 31, 2016.


    * On April 27, 2017, we entered an extension agreement with CH Capital Lending, LLC in which CH Capital Lending, LLC has agreed to extend the maturity date of the note to July 31, 2018 with respect to a loan for approximately $4.11 million, secured by a first position in equipment in the Shreveport, Louisiana manufacturing facility. The extension required a payment of $350,000 to the lender by August 1, 2017 and $50,000 per month thereafter. On August 11, 2017 the Company entered into the first amendment to the second loan extension agreement, in which CH Capital extended the due date of the $350,000 payment from August 1, 2017 to November 1, 2017, and $50,000 per month thereafter.

    On April 30, 2018 the Company entered into the second amendment to the second loan extension agreement with CH Capital, which extended the due date of the $650,000 due under the first amendment of the second loan extension until July 31, 2018. As a condition of the foregoing extension, the Company paid to CH Capital on May 3, 2018, $162,500, which was applied to and reduce the $650,000 owed by the Company. The agreement further obligated the Company to pay CH Capital $50,000 per month, no later than the first day of each month, beginning June 1, 2018. The lender, CH Capital Lending, is an affiliate of Stuart Lichter, one of our directors and significant stockholders.
     
  2. RUCRAYZE

    RUCRAYZE Elio Addict

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    Bummer, thanks for the info.
    Not at all looking good.
    Cash on hand just about covers a unit!
     
    BaldGuy likes this.
  3. Rob Croson

    Rob Croson Elio Addict

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    So not really any big surprises.
    • They have no money
    • Their creditors are continuing to grant them extensions on a regular basis
    Nothing will change until the money start arriving by the truckload.
     
    Ian442, Bert, RUCRAYZE and 2 others like this.
  4. RSchneider

    RSchneider Elio Addict

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    BaldGuy likes this.
  5. BaldGuy

    BaldGuy Elio Addict

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    yup. I said I figured the last report was the last, but I was wrong. The balance sheet might look weak but least the stock been doing good. Maybe OTC QB can remove that Delinquent SEC Reporting symbol.
     
    Bert likes this.

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