Amazing
Amazing, many of the issues and non disclosures which were brought up on this board are finally in the financials.
What does it mean...nothing.
Mr. Samblis has screwed the shareholders and it is a very small sentence in the Form 10Q.
The convertible preferred conversion rate is unaffected by a reverse split. So, lets assume there are one billion shares outstanding of common stock and the company has another reverse, say one for 50 - that would mean that there are now 20,000,000 common shares outstanding.
If Steven were to convert the preferred stock, he would have 2,400,000,000 shares or over 99% of the Company.
As he has ten votes per share, he does not need to convert as he has control and, being that the conversion rate is not adjusted for any reverse splits, why convert and potentially be diluted via future reverse splits.
The toxic financiers are not affected by the reverse splits because there debt is converted at a discount to the market and also is not affected by reverse splits between the time of the loan and the conversion of their debt.
This company survives, if you can call it that for two purposes, to make the debt holders rich and for Mr. Samblis to continue to suck out the cash by way of "t&e" and other "business activities"
As for Charlie's comment to sell the shell, who would want it with the huge amount of debt outstanding, possible conversion of debt to equity and only god knows that other liabilities are out there.
You can buy a shell today for next to nothing. If it is not reporting and has had no activity for years big deal. All you have to do is hire a CPA to prepare the past due 10-Q's and 10-K' and you are now current.
Put together a quasi business plan, pump up the stock, and your on the bulletin board.
I guarantee the SEC wrote to Steve asking questions about his filings and he came back and said that he relies on his accountants to make sure that all the disclosures are proper. He will accept their comments, discuss them with his new accountants and make sure that future filings are complete.
No penalty, no fine, no nothing.
Sneaky, Shitty, Shenagin Samblis Screws the Shareholders with a complicit SEC.
