43North grand prize winner ASi Inc. never managed to make its machine parts-making machine work. And now, it's officially delinquent on a loan it received from an Erie County Industrial Development Agency affiliate.
ASi, which won the $1 million grand prize in the state-backed business plan competition in 2014, never managed to build a successful business around a part-making machine that it thought could make components faster and cheaper than conventional methods.
Now, it has been declared delinquent on a $250,000 loan it received from the IDA's Regional Development Corp. affiliate in 2015. With interest, ASi now owes nearly $280,000.
"We're in the process of trying to work out the loan," said Gerald Manhard, the agency's chief lending officer.
The machine's developer folded. Another company, Indiana-based NIBCO, acquired the equipment, but sold the machine to ASi in 2012 after failing to make it work successfully and giving up on the process.