This is our June 5, 2020 update.
Given the impact of the COVID-19 pandemic on the event industry and consumer discretionary spending, the absence of credit and stimulus to underbanked small businesses, production and fulfillment reconstitution costs, and significant uncertainties associated with each of these matters, Throne Factory believes that there is substantial doubt that it will continue to operate as a going concern.
Despite our aforesaid doubt, Throne Factory remains committed to the resumption of operations and order fulfillment. We are grateful to the many customers who are working with us towards this goal. Regrettably, we are experiencing an inequitable number of customers who are disputing their orders with their banks and credit card companies, further siphoning cash necessary to resume operations. Pre-orders are not eligible for a refund and we ask that customers who have obligated themselves to a pre-order work with us to get through this unprecedented time.
Our previous updates disclosed cost attributed to the COVID-19 related disruptions to our operations as well as our desire to refocus our business, reduce our capital expenditures, and negotiate with key vendors. We discussed our desire to liquidate cancelled and anticipation inventory to recoup the cash-burn directly related to the government mandated pause so that we have sufficient cash to resume operations. We further determined that past due and pre-orders will be delayed by 270 days based upon the aforesaid capital expenditure reduction and liquidation efforts to date, a best-case cash-flow allocation to fulfillment, and the resumption of pre-pandemic manufacturing and supply chain levels.
We are continuing our attempts to liquidate anticipation inventory and cancelled or disputed orders to recoup the cash-burn directly related to the government mandated pause and related downstream issues. Our so that we have sufficient cash to resume operations.
Our commitment remains to commence operations related to fulfillments on June 15, 2020.
Throne Factory is committed to act equitably and make thoughtful decisions with regards to our customers, our vendors, and our landlords, and our team until such a time we can resume normal operations or determine we are unable to remain a going concern.
Our next update is June 12, 2020.