Refer to the 2015 annual report under "provision for doubtful debts". When this was queried with the Company they confirmed the final payment for sale of the shares in PMR was not going to arrive. This will probably now be covered up by the Company through another debt to Hudson.
You say that the Company should be praised for allowing the Hudson Corporate Service Agreement to expire at the end of June. This is extremely risky for the directors since the fee is "to be agreed by the directors from time to time". Let's see how that works out for them on the back of Tiaro and the ripple effect it has through other Company's.
You have said it yourself, R&D paid in March the grant expired in April. Drillers usually accept 30 even 60 day terms and short term lenders are happy to take your money if you can demonstrate a capacity to pay.
There are no excuses for this one. The permits were in place, the cash in the bank and SOC chose to let the grant lapse. What faith can we now have that they will ever fulfil their promises to drill?
You seem to be quite concerned about ASX listed companies as though you need to be some kind of god to run one. A good Company Secretary will solve most of the problems.
Also, the cost of drilling is not dependant on whether or not a Company is listed on the ASX.
In 2015 the Company averaged over $250k per quarter on admin and exploration, yet when the cash was tight we were able to reign this in to $86k per quarter.
I know you will say the new directors cannot be blamed for the past directors mistakes. That is a total cop out.
This is quite a substantial difference in cost, and rather than shout the new board's praises for me it raises concerns that perhaps these costs were not on commercial terms. Directors have a responsibility to the shareholders, not to the previous board.
Who agreed to offset Hudson's debt against the payment owing for the sale of the PMR shares? Why was Hudson not charged interest on this debt to the Company, but the Company was charged interest by Hudson? All this happened with Rocco and Charles on the board and the missing $175k payment sits squarely in the new board's laps.
SOC Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
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