Power Sports Factory, Inc. (PSPF.OB), the importer, marketer and distributer of motorbikes, principally under the “Andretti” and “Yamati” brands, has recently announced that it is expanding its manufacturing relationship. However, there are doubts about the reliability of this announcement because there was no form 8-K filed. It was also announced that OTC Reporter got 250,000 free trading shares for a stock promotion.
Let’s look deeper at the performance of this company. Although the company is a fully reporting to the SEC, it keeps delaying to file annual as well as quarterly reports. From the latest 10-Q filing it is seen that Power Sports Factory has several financial problems:
- The company has the operating loss of $1,124,000.
- It is unable to cover all the liabilities.
- Current assets depend on the inventory to be sold (inventory constitutes 91% of the current assets).
Thus investors should carefully consider the performance of the company and only then decide whether this is a reasonable opportunity for them.
