Local Ad Link Writing Bad Checks

Things continue to get worse and worse for Local Ad Link. For several months now, I have heard reports of LAL handing out commission checks to their sales people, but when the sales people take them to the bank, the bank won't honor them, stating insufficient funds. Well, the company finally issued a statement, confirming that they have written almost a quarter of a MILLION dollars in back checks. Here's what they had to say for their sorry selves:

"With the stoppage of the credit card processing and the processors holding back over $900,000 of funds due to the Company, we inadvertently had 567 checks returned totaling over $250,000 to valued employees, commissioned sales force and vendors. We currently do not have sufficient funds on hand to fund our current obligations until we reach our projected break-even level of operations. We do not have any bank credit lines. Accordingly, we will have to obtain additional funding in the near future in order to continue our operations until our revenues are sufficient to fund our operating expenses...we do not anticipate that we will generate sufficient cash from operations to fund our working capital needs for at least another three months. Accordingly, we intend to continue to seek additional financing from various sources, including from the sale of debt or equity securities. We have not yet identified, and cannot be sure that we will be able to obtain any additional funding from either of these sources, or that the terms under which we may be able to obtain such funding will be beneficial to us. If we do not obtain sufficient additional funds in the near future, we will have to suspend some of our operations, further scale down our current and proposed future operations or, if those actions are not sufficient, terminate our operations....As a result of the above activities, we experienced a net decrease in cash of $87,596 for the three month period ended March 31, 2009. Our ability to continue as a going concern is dependent on our success in obtaining additional financing from investors through the sale of our securities and continuing our stream of revenue through LocalAdLink."

Ouch. All those poor suckers who hucked this crappy product at their friends and family are now getting screwed as well. I'd be willing to bet $100 that says Local Ad Link will be gone by this time next year.