Mr. Lancaster reported on destruction caused by a " Nor'easter” tornado that strike Shoetown in April. Problems amounted to approximately $50, 000, just under the insurance allowable.
Mr. Unum reported that revenue revenues are certainly not meeting objectives, primarily as a result of parents' developing disenchantment with spoiling youngsters; parents were no longer willing to buy $300 premium sneakers for their youngsters as they did in past years. Mr. Gorr concurred and mentioned something about " not sparing the rod. ” To be able to compensate for lowered sales, the organization has increased prices can be 10% regarding product costs.
Mister. Lancaster lamented that the quality of Apollo products was too high—the shoes were just not deteriorating fast enough. Mr. Lancaster also stated that due to strength of current catalog and as a cost-cutting measure, he chose to stop research and development efforts within the Phoneshoe, thus eliminating Research and Development expense pertaining to the current 12 months. The development laboratory will be revised in 2012 to accommodate a personal health club for corporate and business executives. Experts working in the lab have been reassigned to maintenance duties in other places in the company. The Company has also saved nearly all and phone expense through increased usage of e-mail.
In other business, the board certified the write-off of one account receivable intended for $8, 810. 13 pertaining to an account that were outstanding over a year. Mister. Lancaster noted that he did not assume any other write-offs during the year, or that " heads would roll! ”
Mr. Unum moved that Apollo progress $1, 000, 000 to Mr. Lancaster's personal admin as a personal bank loan to cover personal legal expenses related to her previous workplace. Mr. Unum further recommended that the promissory note as well as accrued interest of 1% per year become due in June 30, 2048. Mr. Lancaster recommended that it end up being recorded in " different receivables, ” rather than " employee advances” so as to certainly not trouble investors with...