Wow. I am kind of at a loss for what to even say. So let’s just let the 10-K do the talking. But first, a few highlights:
Shareholder Equity, SG’s self-chosen and much-touted metric for measuring his stock’s performance, is now NEGATIVE $23,306. That’s down from a reported $1,095,879 in positive shareholder equity that was supposedly achieved at the end of Q3. Also, the going concern is back.
In the last 10-Q, Scott reported total revenues of $1,670,113 for Q1-Q3.
In the 10-K, Scott reported total revenues of $1,515,733 for the full year. So SEEK’s Q4 gross (not net) revenue was NEGATIVE $154,380??? How can that even happen? Did he have to refund some customers their money? Or is this significant adjustment the result of that SEC letter his accountants sent? Hmmmmm….
SEEK’s stock is now so worthless that even TCA Global won’t take it in exchange for debt. The statements on this in the 10-K (see below) are pretty foreboding. It’s also pretty funny in the Risk Factors sections where it talks about a possibility that the stock price could decline… lol.
Then there's this quote that pretty much speaks for itself: "There can be no assurance that we will be able to raise any additional capital or on terms acceptable to us, if at all. In the event that we are unable to generate adequate revenues to cover expenses and cannot obtain additional financing in the near future, we may seek protection under bankruptcy laws."
Anyways, the bottom line is that SEEK is now insolvent, $3MM+ in debt, in default on its loans, apparently unable to obtain any more financing secured by stock issuances, and admittedly likely incapable of continuing to function unless some liquidity is restored to the stock price and more financing becomes available.
Translation (IMO of course): SG will very soon reverse split the stock in an attempt to get some liquidity back. Unless Q1 numbers are amazing somehow, the stock will likely tank back to .0001 within a matter of weeks as debt holders try to get what they can before SG’s next move, which will probably be bankruptcy, a liquidation of SEEK’s assets and shutting down of operations. All in my opinion of course, but I don’t see any other reasonable interpretation of the 10-K that just dropped.
Okay, on to the highlights:
Here’s the stock issuances SG has made JUST SINCE JANUARY 1, 2015!!! Note that, with a billion shares obtained at .000055, Fife is still making a nice profit while VFIN sells those .0001’s to folks not paying attention.
On January 8, 2015, we issued 258,028,571 shares of common stock to an investor related to the conversion of $43,348.80 of debt at a price of $0.000168 per share.
On January 21, 2015, we issued 225,000,000 shares of common stock to an investor related to the conversion of $25,200 of debt a price of $0.000112 per share.
On January 22, 2015, we issued 250,000,000 shares of common stock to an investor related to the conversion of $28,000 of debt a price of $0.000112 per share.
On January 26, 2015, we issued 116,666,667 shares of common stock to an investor related to the conversion of $14,000 of debt a price of $0.0012 per share.
On February 2, 2015, we issued 90,909,091 shares of common stock to an investor related to the conversion of $10,000 of debt a price of $0.0011 per share.
On February 5, 2015, we issued 236,750,000 shares of common stock to an investor related to the conversion of $23,675 of debt a price of $0.001 per share.
On February 12, 2015, we issued 265,000,000 shares of common stock to an investor related to the conversion of $24,910 of debt a price of $0.000094 per share.
On February 23, 2015, we issued 335,166,667 shares of common stock to an investor related to the conversion of $20,110 of debt a price of $0.00006 per share. On February 23, 2015, we issued 331,850,545 shares of common stock to an investor related to the conversion of $18,251 of debt a price of $0.000055 per share.
On February 26, 2015, we issued 335,890,909 shares of common stock to an investor related to the conversion of $18,474 of debt a price of $0.000055 per share.
On March 11, 2015, we issued 375,000,000 shares of common stock to an investor related to the conversion of $20,625 of debt a price of $0.000055 per share.
Then there are many indications that a reverse split and/or bankruptcy is imminent (these are just highlights, read the 10-K for the full, sad story):
Our November 30, 2014 financial statements include disclosure that casts substantial doubt regarding our ability to continue as a going concern.
As reflected in our financial statements, we had an accumulated deficit at November 30, 2014 of $9,497,316 and a net loss for the reporting period then ended of $1,096,714. Our auditor in its report dated April 13, 2015, has expressed substantial doubt about our ability to continue as a going concern. Our ability to continue our operations and finance the growth of our future operations and strategic objectives depends on management’s plans, which include the raising of capital through debt and/or equity markets, with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. There can be no assurance that we will be able to raise any additional capital or on terms acceptable to us, if at all. In the event that we are unable to generate adequate revenues to cover expenses and cannot obtain additional financing in the near future, we may seek protection under bankruptcy laws.[/b
We are in default of the terms of our credit facility with TCA
On October 1, 2013 we obtained $1.3 million in cash from TCA under a new $5 Million credit facility. In September of 2014, we restructured our agreement with TCA under new terms that envisioned TCA converting debt payments into shares of our common stock at a discount rate much lower than we could obtain elsewhere. Since the restructuring in September of 2014, our share price has declined and TCA has notified us that they do not plan to convert the debt payments into shares under the discount rate (15%) described in our agreement and will require us to make monthly cash payments. We are behind on the cash payments to TCA and are therefore in technical default on the notes. We are actively working to resolve the situation with TCA as soon as possible, however, there can be no guarantee of the outcome at this time. The credit facility is secured by our tangible and intangible assets. If TCA were unable to collect the balance on the facility from us, it could repossess the collateral used to secure the facility. This could materially affect our operations and financial results.
We have incurred significant operating losses in the past and may incur significant operating losses in the future.
We may require additional capital to respond to business opportunities, challenges, acquisitions or unforeseen circumstances. If capital is not available to us, our business, operating results and financial condition may be harmed.
We expect a number of factors to cause our operating results to fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance.
And by far my favorite section:
Risks Related to Our Common Stock
Our share price could decrease significantly [from no bid???] from the sale of our shares of common stock by stockholders.
As of November 30, 2014, 193,512,315 shares of our common stock are eligible for resale pursuant to Rule 144. We have not agreed to register any shares of our common stock under the Securities Act for sale by any security holders. Future sales of large numbers of shares of our common stock into a limited trading market or the concerns that those sales may occur could cause the trading price of our common stock to decrease or to be lower than it might otherwise be. If an active, stable and sustained trading market does not develop, the market price for our shares will decline and such declines are likely to be permanent.
Although our common stock is quoted on OTC Pink® Current marketplace, an active and liquid trading market for our common stock has not yet and may not ever develop or be sustained. You may not be able to sell your shares quickly or at or above the price you paid for our stock if trading in our stock is not active.
And how exactly do penny stock CEO’s try to get some active trading back in their stock when it’s at no bid and fluff PR’s aren’t working anymore? Hmmmmm….
