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Wednesday, 08/20/2014 8:33:04 AM

Wednesday, August 20, 2014 8:33:04 AM

Post# of 163692
KEY NOTES for 2nd Quarter 10Q - $MTVX - EXCELLENT NUMBERS >> READ
(Credit goes to Ms. BB for her analysis)

What we want to see with an issuer like $MTVX is evidence of debt restructuring or recapitalization. Is $MTVX doing that or not? They certainly are and have accomplished some significant milestones during the second quarter of 2014. As long as the Company continues to focus on flipping its balance sheet to the positive side by generating revenues and cash flow, the future of this company is BRIGHT. What we do not see--and we knew beforehand--are the revenues (orders) received during this quarter (3Q)hence as time moves to the right on the x axis, we can expect to see some excellent revenue numbers, too.

Key milestones evidenced from the 10Q are as follows:

1. Reduction of short term debt: $1,079,363
2. Reduction of long term debt: $3,723,227
3. Increase in additional paid in capital: $2,688,995
4. Cash flow positive

The GSA for the quarter includes expenses for issuance of shares for professional fees associated with financing and consulting activities which are stated at fair market value of share price at the time of share issuance. Also included in the GSA are interest expenses related to share issuance for settlement of trade payables (i.e. 3(a)(10)issuance). These are extra-ordinary expenses for 2014 and should be noted as such. The P/L for GSA is currently skewed due to merger/restructuring charges that have and will occur in 2014.

What is not included in the GSA are share issuances to Ironridge because these are contigencies that must be evaluated from time to time and will be adjusted at the conclusion of the calculation period. Ironridge debt settlement are to be adjusted against interest expense and such can be a positive or a negative adjustment to the P/L.

The increase in additional paid in capital is a result of shares issued. It is the fair market value of total shares issued for each short term note minus the total cost marked at par. $MTVX is able to successfully restructure its debt and recapitalize the company because the par value of the common stock is 0.00001.

As the Cerner deal comes to a completion, we can expect a reduction in long term liability to ~$11 million this year which will take down the long term assets stated in the balance sheet.

In my estimation, $MTVX should be adding at least $5 million in revenues for the remaining part of 2014 because their business model is currently seasonal with the bulk of sales occurring during the second part of the year. With the roll-out of other product lines together with regular sales of the mini-bikes, it is quite possible for MTVX to have a quarterly turn-over of $4 million next year which would allow them to have levered cash to extinguish almost all of its mature debt (long term) by 2015. Based on this achievable turn-over, equity financing could become minimal in 2015.

Overall, the 10Q is excellent.

Very good job, MTVX.

8-K Iron Ridge Agreement Explained

Quote:
The material terms of the Settlement are:
1)
IronRidge will subordinate its security interest to the Company’s current financing partner that will allow APT MotoVox to produce and ship large current and future orders throughout the remainder of 2014.


DD on the IR 8-K starts with the above section. What this section means is that APT reached an agreement with two parties 1)Ironridge; 2)a current financier. Current lender, in exchange for providing additional financing to help APT produce/ship large orders, is taking senior rights to Ironridge's agreement. This is what a subordinated debt is--Ironridge's security interest in all of APT's assets which it obtained via the old TCA agreement will be subordinated to whatever loan APT's 'current financier' will be giving. The 'current financier' may or may not hold security interest but it will require that this issue with IR be resolved as a condition.

In exchange for this new arrangement, Ironridge will get about 381 million more shares (maximum) or even less. Here is the math:

Total shares due Ironridge is a function of:

Shares issued to them to date + (x)
x = $2,287,000 ./. 80% (trigger price) minus 0,002
trigger price = 0.01 at minimum, maximum avg of VWAP 5 days after settlement date but before calculation date.
x = $2,287,000/ 0,006 = 381.16 million shares MAXIMUM, fixed at 1c and if the VWAP is higher then they'd get less

Total shares issued to Ironridge = 1,12 billion + 381 million.

The new calculation at trigger price (and date), indeed accelerates calculation period due to the high price being applied which results in less amount of shares due, hence stops IR dilution.

MTVX seems to have significant plans in the works (and IR and current financier agree) to get the share price to at least 1c, otherwise neither IR or 'current financier' would agree to this type of settlement. Settlements for the most part are intended to be a win/win for all.

MTVX is going to penny and above then.

As for MOASS...there is no MOASS on a stock like MTVX. The reason is that there is heavy manipulation. MOASS is a phenomenon of an organic market, not a manipulated market where MMs can simply not process orders coming in.

Hope this 'enlightens'