Saturday, November 2, 2013

TubbyWad needs money - VFX.v

Mr. Jason Allen reports


Virtutone Networks Inc. has secured a new accounts receivable credit facility in the amount of $7.5-million, with the capacity to grow to $15-million. The new facility is subject to standard due diligence from the lender and approval by the company's board of directors. "Over the past few months, we have been restricted in our growth due to a lack of working capital," said Jason Allen, chief executive officer of Virtutone. "This new facility will enable the company to accelerate its growth."
Instead of the usual month-end horsechit about multi-millions in monthly "sales", this time the good news was about multi-millions of "AR" credit, required because, obviously, Co is so fukkin successful it needs zillions in capital to expand.

Riiiiight TubbyWad. This Co is cash flow negative to the tune of $120k per month and is FULLY delinquent in its revolving bank debt. Nobody except a co-conspirator would advance this dopeshow a cent in credit, "AR" or otherwise. Fork your crooked basterd behind hole we here at Neer Do Well say.

And we can go a step further here. On the last financials TubbyWad SAID "Accounts receivable at July 31, 2013 includes $2,206,817 (2012 - $335,192) owing from this customer. This amount was fully collected subsequent to July 31, 2013."

IF that is true, (Pffft) why is TubbyWad strapped for the folding green at all?