As if the foregoing issues are not be enough, the company seems to have even more problems.They had an arrangement with William Marsh Rice University where they had to pay $5 million for a patent license on a new technology where Quantum Dots were used. However, Hague never had the money (as of March 31, assets were $411,000). And now that the deal has been suspended, they received notice that a debt of $3,500,000 to Rice. What is the company going to do? If it issues more shares to cover the debt, the present shareholders would be greatly diluted. Is there a way to get additional financing?
Besides, the financial side of HGUE does not give me much comfort. In a single quarter (I am talking about the one ending in March), current assets decreased from $506,000 to $111,000. If you counted the money in the bank, you would see that this was a loss of $381,000. Does that sound sane for you? In addition, the company hasn't made any sales, and the loss extended up to $420,000. Although it looks like Hague is able to cover its current liabilities, long-term debt of almost half a million is still floating like a shadow.
Despite that, the corporation seems to be on the way to making some changes. Last week HGUE paid $11,000 to Stock Guru for stock promotional services. The stock price hasn't still been affected. Any ideas why?References:http://www.solterrasolarcells.com/The Recent Activities of Hague Corporation