Spekulatius Posted December 5, 2018 Share Posted December 5, 2018 ^ Tim, this makes sense and matches my experience. I agree turning a fumbling company around in this sector takes time. Contracts can have a long duration (10 years +) and switching costs and hurdles are high. It’s a great business to be on currently. It’s tough if the reputation is damaged preventing from getting a foot in the door on new programs and takes time to fix. Good luck with the turnaround! Link to comment Share on other sites More sharing options...
wachtwoord Posted December 5, 2018 Share Posted December 5, 2018 Thanks for your continued participation in the thread Tim (in so far as you're allowed to of course). Thanks! Link to comment Share on other sites More sharing options...
willward1 Posted January 23, 2019 Share Posted January 23, 2019 Solitron Devices, Inc. Announces Termination of Its Auditor and an Update on Recent Financial Results http://www.digitaljournal.com/pr/4120644#ixzz5dRelxbds Link to comment Share on other sites More sharing options...
Spekulatius Posted April 20, 2019 Share Posted April 20, 2019 Solitron Devices, Inc. Announces Termination of Its Auditor and an Update on Recent Financial Results http://www.digitaljournal.com/pr/4120644#ixzz5dRelxbds Seems weird to sue the former auditor. Also, cash and securities are down to ~560k. Now a new auditors needs to come in and redo the audit, with $1.4M spent so far on auditing alone? Sounds like a mess. Might be better to delist. https://www.sec.gov/Archives/edgar/data/91668/000165495419001660/sodi_8k.htm Link to comment Share on other sites More sharing options...
valueyoda Posted April 20, 2019 Share Posted April 20, 2019 It sounds bad. Let's hope they can get the company back on track. Link to comment Share on other sites More sharing options...
writser Posted May 10, 2019 Share Posted May 10, 2019 https://finance.yahoo.com/news/solitron-devices-inc-announces-unaudited-200000013.html There were no costs associated with the fiscal 2017 audit and investigation in the 2019 fiscal fourth quarter, as compared to $117,000 in the 2018 fiscal fourth quarter. For the 2019 fiscal year, there were $1,115,000 of costs related to the fiscal 2017 audit and investigation as compared to the 2018 fiscal year of $198,000. In addition to those costs, we incurred legal expenses for company counsel. As noted in our previous press release, we terminated our auditor in January 2019. Based on a number of factors, including the Company's current cash levels and estimated costs to complete audits for fiscal years 2017 through 2019, the Board has made the determination that it is in the best interest of shareholders for the company to rebuild its cash position before hiring an auditor. Therefore, at this time, it is unlikely that fiscal 2020 results will be audited. Painful. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted May 10, 2019 Share Posted May 10, 2019 Not a good situation at all. $1.115M in "audit and investigation" fees is a huge # for a company that only had $1.391M in FY 2019 gross profit! I agree with Spekulatius' comment above: They should delist/go dark, the sooner the better. Link to comment Share on other sites More sharing options...
valueyoda Posted May 10, 2019 Share Posted May 10, 2019 Hate to say it, but it turned out to be an unmitigated disaster for current shareholders. Link to comment Share on other sites More sharing options...
Spekulatius Posted July 4, 2019 Share Posted July 4, 2019 July 3 AH filings become ever more popular these days: https://www.sec.gov/Archives/edgar/data/91668/000165495419007938/sodi_8k.htm Link to comment Share on other sites More sharing options...
writser Posted July 4, 2019 Share Posted July 4, 2019 So that explains why Tim was angry in the Sytestar thread. Shares outstanding increased by ~10%. Though I guess with such a small market cap significant dilution is hard to avoid if you want a stock incentive plan. In general I agree with the sentiment above: go dark / delist as soon as possible. Link to comment Share on other sites More sharing options...
Spekulatius Posted July 4, 2019 Share Posted July 4, 2019 So that explains why Tim was angry in the Sytestar thread. Shares outstanding increased by ~10%. Though I guess with such a small market cap significant dilution is hard to avoid if you want a stock incentive plan. In general I agree with the sentiment above: go dark / delist as soon as possible. My bet is that if you screen for companies that file before holidays, you come up with a population of companies that underperforms the market. Link to comment Share on other sites More sharing options...
wachtwoord Posted July 4, 2019 Share Posted July 4, 2019 Tim: can you explain why you think you deserve a wage increase considering the recent performance of the company? Link to comment Share on other sites More sharing options...
cubsfan Posted July 4, 2019 Share Posted July 4, 2019 Tim: can you explain why you think you deserve a wage increase considering the recent performance of the company? Interesting question - but if you are operating as CEO and CFO, doing effectively 2 jobs, seems as though your are getting a bargain with this pittance of a salary. Link to comment Share on other sites More sharing options...
bizaro86 Posted July 4, 2019 Share Posted July 4, 2019 I'm not saying SODI is above criticism, but I think the $80k salary for Tim is completely reasonable. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted July 4, 2019 Share Posted July 4, 2019 As writser mentions, this is significant dilution given the company's # of shares outstanding. I don't know how much the board and execs should be making, but the pay raises and bonuses are discomforting given the company's tight liquidity situation. The press release in May: "Our goal over the next few quarters is to rebuild our cash position." Also, am I the only one that noticed this interesting little nugget: "On June 28, 2019, the Company modified the compensation of Mr. Mark Matson, the Company’s President and Chief Operating Officer. Mr. Matson’s annual base salary was increased to $200,000 effective retroactively as of January 1, 2019." Link to comment Share on other sites More sharing options...
ragnarisapirate Posted July 4, 2019 Author Share Posted July 4, 2019 It’s probably pretty reasonable to assume that this indicates the company is moving along and doing decently well with the turnaround. The salaries are cheap, if not inline with industry standards. Additionally, how are you going to get someone to leave a well paying job to come to a company that hurting? That takes a special type of person, and if they are doing well, they deserve compensation. Without Tim and crew, there wouldn’t be a company left. Remember the financials that we have are now fairly old, but their bookings and future prospects were up significantly. The geo political situation may well be helping things, too. On the note of delisting, I think there is a chicken or the egg argument there: you can’t delist without current financials. You can’t get current financials without paying for a new auditor. If it were anyone but Tim, I’d have a problem with what’s going on, but I think he is a stand up guy. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted July 4, 2019 Share Posted July 4, 2019 The Board did increase the COO's pay retroactive to January 1. There were a number of factors involved. The compensation change had been in discussion since last year and was verbally agreed to a number of months ago. It was held up when we made it part of the overall plan and due to the company's cash position. He is doing a great job. Had a salary of half his predecessor. He works 12-14 hour days six days a week. It was and is below market for the position and below his talent level. I could go on and on. The incentive plan was generally agreed to three years ago but held up due to the audit situation and we really wanted shareholder approval. The SEC won't allow a meeting without an audit. It was important to get that in place for Mark. The current share price didn't impact the number of shares granted. I am not going to get into a deep discussion on this forum on whether my comp change was deserved or not. I will note that my compensation is without any benefits or long term contract. It was originally agreed to prior to me being named CFO. Optically it looks better to do when profits are flowing. I understand that. Was I angry that some assume a filing near a holiday is intentionally timed and question the individuals character? I was certainly sensitive to it. Sure some bad apples do it, but I know in many cases, such as Solitron's, there was no bad intention. There are SEC requirements. We filed as soon as everything was completed. Sitestar probably wanted to get it done before quarter end which left them five days to file. I have no idea if they waited nor do the accusers. Just seems wrong to assume. Link to comment Share on other sites More sharing options...
KJP Posted July 4, 2019 Share Posted July 4, 2019 Sitestar probably wanted to get it done before quarter end which left them five days to file. I have no idea if they waited nor do the accusers. Just seems wrong to assume. People have to draw inferences based on incomplete information all the time. If the actor has treated you fairly in the past, you're likely to give him or her the benefit of the doubt; if they haven't, then likely you won't. That is why reputations matter. If you had complete information, then reputation would be irrelevant. Link to comment Share on other sites More sharing options...
wachtwoord Posted July 4, 2019 Share Posted July 4, 2019 Thanks for answering Tim. Can you also tell me why the wages were below market before? (I also don't have an opinion about the absolute wage but am reacting to an increase that seems oddly timed). Link to comment Share on other sites More sharing options...
Tim Eriksen Posted July 4, 2019 Share Posted July 4, 2019 Thanks for answering Tim. Can you also tell me why the wages were below market before? (I also don't have an opinion about the absolute wage but am reacting to an increase that seems oddly timed). 1. Generally true of the company across the board 2. As I recall it was based on what his initial consulting agreement was adjusted lower for additional perks he gained (vehicle, housing, insurance, etc.). 3. Prior to the Board knowing the hours he would put in and what was required. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted July 26, 2019 Share Posted July 26, 2019 Q1 earnings release for those who are following https://www.sec.gov/Archives/edgar/data/91668/000165495419008554/sodi_ex991.htm Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted July 26, 2019 Share Posted July 26, 2019 Q1 earnings release for those who are following https://www.sec.gov/Archives/edgar/data/91668/000165495419008554/sodi_ex991.htm Congrats on what looks like a very solid quarter Tim. Link to comment Share on other sites More sharing options...
cubsfan Posted July 26, 2019 Share Posted July 26, 2019 Congrats Tim on all your hard work and perseverance with Solitron. You deserve in face of all the skeptics. Link to comment Share on other sites More sharing options...
bci23 Posted July 29, 2019 Share Posted July 29, 2019 Hey Tim Can you expand at all on what the $175k/qtr of increases expenses related to the fab production consists of? Is this new employees, outside consulting, something non-personnel? Link to comment Share on other sites More sharing options...
oddballstocks Posted July 29, 2019 Share Posted July 29, 2019 Hey Tim Can you expand at all on what the $175k/qtr of increases expenses related to the fab production consists of? Is this new employees, outside consulting, something non-personnel? Not Tim, but this probably typical die setup costs. If you're stamping, or fabbing or doing anything like this you need to pay to have the machines setup that produce your product. Then you need to pay minimums on production if you're contracting it out. Link to comment Share on other sites More sharing options...
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