Martin Jetpack

[minimoke]

Mr. Leung was not appointed as an accountant, but as a 5th director forming a 5 directors board. 4 directors now reside in the People's Republic of China and one director in Australia. The board has subsequently been 'cleansed' of New Zealand talent. Mr. Leung is a director of 'Prosperous Printing', a China based firm specialising in the fine art of case & soft binding, saddle stitching & wire-O spiralling. A wonderful fit for Martin Aircraft Company, an organisation desperately trying to break into the disruptive aviation market.

Deceived, what you have to realise is MJP is an excellent vehicle for laundering money. (simply because there is no viable commercial business what other reason is there for its existence). What is a good way of getting overseas trips - I know. Be a Director and have your Director meetings whenever at company expense. While in the mean time drawing in $250,000 worth of Director fees to be spread between them.

But look, these directors have important governance task. They are overseeing a company with no revenue, no customers, no product, no hope on the immediate horizon. But ensuring the $10m loan facility is properly spent.

The CEO of Martin Aircraft Company is also the CFO. Responsible for keeping track of the enormous fiscal leakage, the default colour of his various spreadsheets would have been RED for a number of years by now. Around $80m of expenditures, spent all over the world with travel to places like Dubai, Monaco, Munich, Paris & other exotic locations. In the end only resulting in 4 experimental jetpacks with a running time of just 10 hours each, before the amazing UK imported ROTRON RT1200 engines are disassembled for a much needed overhaul and totally discarded after a fleeting operating total of 30 hours. A busy maintenance schedule indeed, but much to the relief to the immediate neighbours of the testing facility, suffering from the incredible noise that these ground breaking airframes are capable to produce in the short time they are airborne. Things are so busy in Wigram, that the 2017 financial report could not be submitted to the ASX on time, resulting in a lengthy MJP shares trade suspension.

Not all bad news, as the current loan facility of NZ$2.5m per quarter (NZ$10m total from a Chinese Bank) goes some way towards their NZ$3.4m quarterly outflows. So really only around $900,000 in the RED above loan each quarter. Still plenty of time until 19 September 2018 when the NZ$10m loan (plus interest & charges) is due to be repaid. Not sure yet how, but worry about that in 7 months time.

You should be thankful he has both these roles (though I see Receptionist and Chief Tea Lady is missing). Its hardly worth repeating. But how busy can a person be in a company that has no customers (damn pesky critters always demanding things like having engines with more than 10 hours life), no revenue (keeps the accounting department overheads down), no product (so dont need those manufacturing lines)

So given they have no customers, no revenue and no product you would have to ask what the $3,700,000 in employee expenses goes to. Say $100,000 per person thats 37 people all pouring over a v1 engine. They must have a fair bit of expertise in that lot - but no. theres $960k going to consultants. What value are they possibly adding. I flagged years ago this thing would never get off the ground and I haven't been paid a cent.

Maybe they are running around preparing for their next capital raise totally oblivious to the fact that new disruptive technology is flying past them. Hers a clue guys - the world is moving away from the Internal Combustion Engine. Battery and solar power is the new disruption. (Who do I send my $10,000 consultants bill for that bit of expertise to?).

But still there is always hope. Or at least the person who paid $99 (2759 shares at $0.036) for a stake in the company yesterday thinks so.