Tracking Down Every Share Issued in 2007
Well, since CEO Melissa Rice came on board back in April of 2007 the O/S has increased BUT EVERY SHARE IS ACCOUNTED FOR:
From the 2006 Audit/10Q's/K
December 31, 2006 there were "65,355,697" Shares Outstanding
"There were 72,592,929 shares of the Registrant’s $.001 par value common stock outstanding as of March 31, 2007."
"There were 81,111,234 shares of the Registrant’s $.001 par value common stock outstanding as of August 14, 2007."
"There were 81,804,734 shares of the Registrant’s $.001 par value common stock outstanding as of September 30, 2007."
As of 12/31/07 from consolidated balance sheet: "85,273,066 issued and outstanding"
So during the course of 2007 O/S increased by 19,917,369 shares.
"The number of shares outstanding of each of the registrant’s classes of common stock, as of March 31, 2008: 87,198,066"
The best explanation for the increase in these shares and probably the source of the selling is found in the footnotes to the consolidated Balance Sheet:
From 2007 10K Pages F15 and F16 we learn the following shares were issued: (@ equals my calculations)
"During 2007, the Company issued 391,000 shares of common stock to qualified investors, and generated proceeds of $82,638 in connection with the issuance of the shares." (@ 21.1 cents per share)
"During 2007, the Company issued 12,268,057 shares of common stock as compensation for services rendered. The total fair value at issuance date is approximately $1,216,521." (@ 9.9 cents per share)
"During 2007, the Company issued 4,750,000 shares of common stock as compensation for officers and employees. The total fair value at issuance date is approximately $536,500." (@ 11.9 cents per share).
"During 2007, the Company issued 1,879,305 shares of common stock in connection with the settlement of accrued liabilities. The total amount of liabilities released amounted to $324,548." (@ 17.9 cents per share)
"During 2007, the Company issued 629,007 shares of common stock in connection with the exercise of warrants."
Total Shares Accounted for: 19,917,369 issued average price appr. 11 cents (not told how much warrants were exercised for).
OF INTEREST....THIS IS THE SAME AMOUNT BY WHICH THE O/S SHARES INCREASED IN 2007. No mysteries...just full disclosure....transparency. You have just got to like it!!
Of course we would all prefer no dilution, but for a company that was strapped for cash and was crawling through the developmental stage process to the point at which it is today....near profitability and a bright future...I think we would have to agree that it was worth it.
The exact details of these transactions are not given to us....however, of those issued to insiders/consultants and such we know that as of 3/31/08 CEO Rice and Director Emas held a total of 4.518 Million shares.....or just over 5% of the issued and outstanding shares. It was the team of Emus/Rice that had the required audit completed then and filed the DRG's Form 10 to bring them from pinky land to the Bulletin Board. I'm sure most of the shares issued were to pay for such work. RELEVANT POINT: I Wonder why Emas is hanging onto so many his shares??
I see this alone as a pretty significant thing...Plus CEO Rice has substantial ownership and a vested interest in the company's long term success.
