Ecosphere Technologies, Inc. (ESPH.OB) invents and develops clean technological applications and solutions for the industrial waste market in the United States. As there seems to be nothing important happening in the company, let’s take a look at the financial side of the company.
In 2008 the performance of Ecosphere has been going down. If you counted the earnings per share ratio, you would see that. In Q1 2008 this indicator was -0.02, while at the end of the year it fell to -0.03. This situation is also reflected in increasing short long-term debt by 92%.
Inability to cover all the liabilities shouldn’t be excluded analysing the performance of the company. According to Q4 2009 results, current assets constituted $690,000, while current liabilities were $9,920,000. That’s about 14 times more liabilities than the company has assets.
As that wouldn’t be enough for the company, I have found information on the company’s engagement in stock promotions:
Wall Street Resources is a consultant to Ecosphere and was compensated with $15,000 in cash and 200,000 shares of 144 restricted stock for due diligence and consulting fees from October 2007 through October 2008. WSR also receives $2,500 per month for investor relations services. Furthermore, the sole owner of WSR is a 50% owner of WSR Consulting which provides accounting and CFO services to Ecosphere.
