IGS - Ann 3rd Q: $140k in bank end of 3rd Q and will spend $485k in 4th Q. So effectively IGS is reporting that it will expend $485k - "in the future" when it only has $140k
Binding a company to forward monetary commitments (for example signing and/or agreeing to any kind of services contract) when it`s uncertain that a company has enough funds to pay their debts as and when they fall due is committing an act that is normally not well received by the Insolvency Practitioners of the world. Continuing to "run up debts" when the future funding ability of a company is in doubt puts all Directors in a very dangerous position when it comes to the laws and tests of "Insolvent Trading". Having prior knowledge of the lack of funds and then binding a company to forward monetary commitments is something as a Director you just do not do. The laws are very strict and clear cut in this area. Diligence would dictate that no contracts or agreements should be entered into until the funding base of a company is clear and certain. Making announcements on anything that means funds will need to be paid out in the future (future commitments) when that future is uncertain is fraught with danger for all Directors.
Interesting !!
IGS Price at posting:
0.1¢ Sentiment: None Disclosure: Held
