Power Sports Factory Inc., the importer and distributor of Andretti and Benelli scooters, will soon launch an eStrada line of electric scooters and bicycles. But according to the company’s latest financials, it’s in dire need of capital just to stay in business.
“We intend to introduce three all-new models in early 2010,” Steve Rubakh, president of Power Sports Factory, stated in a press release. “The stylish Luxura 500W, sporty Elita 1000W and high-performance Vetrina 1500W will be marketed to consumers at $999.99, $1,299 and $1,499, respectively. All models will boast the latest battery technology, superior performance and the latest styling."
People who attended Dealer Expo 2008 may remember racing legend Mario Andretti’s signing of autographs to usher in the new brand of scooters.
But Power Sports Factory is not doing well financially. During the first nine months of this year, the company lost $1.4 million on sales of $508,000 (cost of sales was just $1,000 less). During the same period last year, the company lost $2.5 million on sales of about $2 million.
The company reported having $1.6 million in total assets and $6.4 million in total liabilities.
Power Sports Factory admitted that it didn’t have enough money to finance its anticipated needs, and that its continued existence was dependent on its ability to raise funds through various methods. “These uncertainties raise substantial doubt about the ability of the company to continue as a going concern,” the company’s third-quarter report stated. Click here to see the entire report.
Posted by Arlo Redwine