It appears from this 8K filing that the BOD wanted mgmt changes, in other words, was not in agreement with Meissners strategy of deficit spending to grow the revenues:
'The Board of Directors believes that Mr. Eiswirth's primary disagreement involves the strategic balance of positive cash flow versus investments in revenue growth. The Board of Directors believe that implementing cost controls and reducing expenses is strategically important to ensure the Company's long-term viability, to maintain its business within existing resources without needing to raise additional financing in the near term. As part of cost saving measures, the Board of Directors approved the elimination of the Chief Financial Officer position and other cost reductions. Mr. Eiswirth believed that cutting expenses could jeopardize the Company's existing revenue and distribution base, as well as its future prospects for growth, and disagreed with the actions approved by the Board. Mr. Eiswirth also disagreed with changes in management supported by a majority of the Board.'
Im of the mind this should have been done years ago, and is the main issue with the company, and many companies that go under. Is it too little too late???
Going forward, the CFO position is eliminated, as the CEO, Ms. Cue can guide Carrie Trainer to manage the accounting.
No more money spent on developing new products. I dont know how much it cost to bring Whoop*ss to market, or Au Naturel, but I have a feeling its in the millions.
The other option the BOD and Ms. Cue has is to sell the company to either private equity, or say a company like Big Red. I have to think if Big Red was willing to pay 37 cents or so, with the obligation of the sponsorships, and I beleive there was some pending class action litigation, that without all that overhang, it has to be worth 50 cent a share. With 38mm shares out, that puts the price for the entire company at under 20 million.
In either scenario, it seems that the company is worth more the current street price.
Dont know what Cue was making but what she will make is what should be conpared to Meissners salary.
I expect if the press release stated their true intent, cuts across the board. A burn rate of 18k per day is, and always has been unsustainable.
I was unpleasantly surprised to see the Whoopass Raptor Truck leases were for something like 120k...money we cannot afford to waste. I'd get rid of sponsorships-we dont have the cash.
Directors should be paid in options, no cash payemnt while times are tough. If thats unacceptable-they can leave. The board is too big anyway, and their performance speaks for itself.
Im sure there are many more ineffieciencies that can be corrected.
Cue is the only person thus far that has presented a workable business model.
This isnt a 'pump'. I wouldnt buy this stock, its too risky, and its more likely to fail than to succeed. It make be a better spec play than some other stocks out there, but its certainly not without a big risk.