My questions
(1) did they cash in on the BellRidge agreement between Nov 22 and the release of the updated S-1? (2) how much do/did they need to complete their MG 80 and 120 kVA products?
Until they finish up a product they are willing to sell, we have zero chance of revenue. They had about $450,000 at the end of Sept. In the recent 10-Q the subsequent events focused not on taking out more notes or loans, but on paying them off and on providing stock for services rendered. It also looks like another note is not due until March 2018. They haven’t told us anything about the cost of the software redesigns nor the engineering costs to develop the 125kVA system. Nor have they provided any feedback on progress. I view the removal of the 0.06 floor on the BellRidge agreement on Nov 20th to be an indicator that the $450,000 was not sufficient and that need/needed more money.
The number of shares quoted in S-1 on Nov 22 was 152 million.
Since Nov 22 there have been about 1.3 million shares traded between a 0.06 and 0.07 range.
Assuming half the volume since Nov 22 was for them to get capital that would of brought in about $40k in additional funding. But if they need another $500,000 to finish the design there will be a lot of dilution in the very near-term. We don’t know which it is, but I think we will find very soon as they are supposed to wrap up the products this year (the deadline they want to make) with a drop deadline of the first week of Feb (the deadline of 60 business days in the Jarotropha contract). I think they will dump whatever shares they need to bring in the $$ to complete the project within the 60 day deadline (Feb 7th ish) in the farmer’s union agreement. They really have to to do that. It far enough out they may be able to spread the pain over time. Or maybe they just needed a little more money. Best thing we can hope for is that they really do finish the products this year (do not hold your breath!).
