The probably have to use reserves now as they probably have to protect what little capital they have. After all they are supposively a start-up company.
They probably have to go into the markets to buy inventory for consignments so that they have something to offer for sale on their auctions. Its not probable that anyone with any brains would consign something to them. They probably have to make sure any capital they probably spent on purchasing items would be recovered in their auctions. They are also probably wouldn't mention anything about these reserves up front because you probably wouldn't bother bidding.
Last edited by daviddbreadman; 08-28-2009 at 08:20 AM.
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