EENT — a provider of power generation products and heating/air conditioning systems for the longhaul trucking and marine industries — has announced that it is implementing a restructuring strategy.
EENT has had severe cash flow issues as it has sought to secure additional financing, causing, among other things, the inability to pay the outstanding payable owed to its former auditor, Marcum & Kliegman, to have the auditor undertake its 10-KSB review and give its consent. EENT says payment now has been made, and review and filing anticipated by Friday, April 21.
Despite this, EENT says it has continued to have successes, including purchase orders for 1,500 auxiliary power units since Jan. 1 — 500 units of which are firm — and various media events, including a recent press conference with the governor of Oregon. In order to solve its cash flow issues, EENT currently is pursuing several leads for sufficient financing to fully fund its revamped business plan. Through its new business plan, EENT has taken significant steps to cut costs.
As discussed in various recent company filings and news releases, EENT has opted to terminate operations at BMZ and Anchor Manufacturing in favor of outsourcing its production to third-party contract manufacturers. EENT says this outsourcing has allowed it to streamline operations and increase efficiencies while drastically reducing overhead, at projected significant savings.
Additionally, EENT has made significant cuts in corporate overhead costs, including, but not limited to, large personnel and marketing cost reductions. The company says these measures and others will give it the opportunity to make the most efficient use of its anticipated proceeds from investment to maximize its chances for success.
“We will emerge from this challenging period leaner and stronger,” says Will McAndrew, chief executive officer of Plano, Texas-based EENT. “With a good financing package and our restructuring plan in place, I am confident that we have the right product and team to make a real impression in the marketplace.”