Quatloos!

The Company has incurred significant losses from operations in the last two years. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations.

In connection with the preparation of our financial statements for the year ended December 31, 2006, certain significant internal control deficiencies became evident to management that, in the aggregate, represent material weaknesses, including,

(i) Lack of a control environment that sufficiently promotes effective internal control over financial reporting throughout the management structure;

(ii) Lack of independent directors for our audit committee;

(iii) Lack of training in public company reporting requirements;

(iv) Lack of control processes for recording and approving journal entries;

(v) Lack of controls over the sales transaction process;

(vi) Lack of controls over invoice posting process;

(vii) Insufficient policies and procedures over various financial statement areas;

(viii) Insufficient documentations for accounting or business transactions;

(ix) Lack of policies and procedures over records retention;

(x) Lack of an audit committee financial expert;

(xi) Insufficient personnel in our finance/accounting functions;

(xii) Insufficient segregation of duties; and

(xiii) Insufficient corporate governance policies.

The Company has incurred significant losses from operations in the last two years. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations.

fuelsaving wrote:Does that mean they are guilty of lying in their SEC filings? Isn't that a criminal offence?

fuelsaving wrote:There is an amusing "interview" with Enrique at http://www.redchip.com/visibility/inves ... rom=pr0426. It sounds to me like basically paid advertising, since the interviewer conveniently fails to ask any awkward questions and accepts Enrique's bulls**t at face value. Interestingly, Enrique claims that the big loss in 2006 was just a carry-forward of old Victor Industries losses, for tax reasons. To me, that doesn't fit the definition of "business consulting fees" in the 10K.

Enrique also claims that their new miracle engine will only use 1% as much fuel as current engines. Since current engines are typically 25% efficient, that implies an efficiency of 2500% - which violates the Second Law of Thermodynamics at the very least.

• EEI had a net loss for the quarter of almost $7M, a net loss of $.29 for each share of common stock.
  
  Administrative expenses were $1.5M, sixty percent of revenue.
  
  Once again, EEI itself (or their auditors) point out that "The Company has incurred significant losses from operations in the last two years. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations."
  
  Incredibly, what JohnnyB writes is absolutely true: 89% of their sales come from Ecuador.

  (1) Petro Industrial, an Ecuadorian company, accounted for 46.14% of revenues;
  
  (2) Electroguayas S.A., an Ecuadorian company, accounted for 29.77% of revenues; and
  
  (3) PetroEcuador, another Ecuadorian company, accounted for 13.4% of revenues.

wserra wrote:Once again, EEI itself (or their auditors) point out that "The Company has incurred significant losses from operations in the last two years. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations."

fuelsaving wrote:EEI have now found a simple solution to this problem - they have sacked their auditors.

The Company has incurred significant losses from operations in the last two years, and as of September 30, 2007 the Company has an accumulated deficit of $18,932,444. The cumulative net losses incurred for the year ended December 31, 2006 and for the nine months ended September 30, 2007 of $9,065,867 are mainly due to non-cash transactions for issuance of stock for services and loss on impairment of building (see Stock Based Compensation, following).

Sales to these customers represented 85% of sales that were to be reported for the nine months ended September 30, 2007, of which approximately 83% was still receivable at September 30, 2007.

In addition, the substance of an arrangement with another customer led JHC to question whether sales had occurred or whether the Registrant's inventory was on consignment with that customer's customers.

Mr_Schmoo wrote:I'm curious - has anybody here actually used the product?

For how long, and what were your results?

Thanks