There’s a brand-new generation of Mustang out, the Challenger has been refreshed, and they just got a deal to tweak Teslas. You’d be forgiven for thinking that Saleen Automotive was riding a tidal wave of cash inflow at the moment, but documentation filed with the SEC on September 30th, 2014 shows otherwise. The Form 10-Q for the 3rd quarter of this year is a very grim review of a company that is seriously on the ropes, with only $7,261 in cash available and over $5.6 million in debt, composed of $583,000 in payroll taxes, $1.1 million in past-due invoices and unpaid salaries, and over $750,000 in loans that are either defaulted or soon to be defaulted. The rough break of it is that the company is claiming $668,629 in assets and over $5.6 million in liabilities. According to the filing, “These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s independent auditors, in their audit report for the year ended March 31, 2014, expressed substantial doubt about the Company’s ability to continue as a going concern.”
At the current rate of things, Saleen can keep operating until December 31, 2014. It has been paying contractors in stock, which at last check is sitting right about three cents per share. Additionally, the company is facing several lawsuits, ranging from basic contract issues to breach of contract due to non-payment lawsuits with banks. Will Saleen sink under the waves? Even Saleen Automotive admits in the 10-Q that they need additional funding and are actively looking…and they are also aware that the funding may not materialize.
Courtesy: Jalopnik, OTCBB (stock prices)
Saleen has been on the skids for a while. I mean, Steve Saleen got kicked out when it went bankrupt back in ’07 and only got the company back a few years ago. The market’s just gotten too crowded. How many Mustang tuners do we really need after all?
OHHH, don’t call him a tuner, he gets mad. He’s a “manufacturer”! I wonder if he’ll find enough sugar daddy’s like Hennessey always seems to (amazingly) to bail him out again?
Can’t they just make it all run w/ cash from drug deals like in the good ‘ol days? Kidding (mostly). In seriousness, Saleen has done some scary-amazing stuff, playing at the edges of the big-time, and I guess running up big-time expenses also. Ugh.
another one bites the dust