Monday, April 03, 2017 10:01:13 AM
AWSL earned or accrued only $42,000 revenues in 2016 with all of that reported in Q4 after reporting no revenues in the three previous quarters of 2016. Neither the current CEO nor the former CEO/MBC offered any revenue projections for 2016 or future years to the best of my knowledge and previous management revenues projections by the MBC proved to be overstated and unreliable.
Apparently, AWSL got what it actually paid its employees for in 2016 – little to nothing! The liability for wages payable of $236,018 at yearend (December 31, 2016) grew from $126,500 at the end of 2015 – an increase of $109,518; whereas. AWSL’s reported salaries and wages for 2016 were $116,500. Apparently, AWSL was able to pay only $6,982 of its 2016 payroll expense! Is it any wonder that the hired help didn’t perform?
AWSL's balance sheet indicates that the Company's entire net worth of $1.5M is represented substantially by its deferred tax asset (DTA) of $1.7M. Simply stated, the Company’s entire net worth is a function of its past inability to operate a profitable business. Furthermore, the common shareholders' dubious net equity is subjugated to the $5.5M in Series B preferred stock leaving the common shareholders completely out in the cold barring a seismic event of incredible proportion.
Shareholders are advised to be very skeptical of AWSL’s continued representation of the DTA of $1.7M, absent any valuation reserve since there is no credible evidence to demonstrate the validity of the Company's ability to generate sufficient future earnings to realize any significant portion of the Company’s huge deferred tax benefits. Furthermore, the footnote disclosure fails to indicate the timing for the expiration of the net operating carryforwards.
AWSL has no significant cash and a negative cash flow from operating activities for 2016 indicating the Company’s ability to pay its current liabilities as they become due is in question; hence, AWSL is far from a "going concern" despite management’s reluctance to reference the standard “going concern” representation since the publication of its long awaited 2012 financials.
https://www.otcmarkets.com/financialReportViewer?symbol=AWSL&id=108033 - link to AWSL's 2012 financials
In short, AWSL is back to its penny stock origins prior to the paid PSC stock promotion of 2009 having recently trading for less than $0.02 per share. Considering the lack of demonstrable value of the DTA, the Company’s modest $0.02 share price still appears to represent a considerable premium, in my humble opinion.
Gilda
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