Amfil Technologies Inc (FUNN)

[User-65225]

Debt DD: The TOTAL liabilities were $5,818,127 on 9/30, but most all of this is for game inventory: $4,286,000 game Inventory out of $6,734,935 total assets... The game debt is listed under Accounts Payable, which is $3,841,000...

This inventory debt is the GOOD kind of debt, because it makes money. They can pay it off as they sell the games. it revolves... It is also calculated using the WHOLESALE price that Snakes pays. It does not include their markup/profit. So its worth millions in profits when sold... again, this is the GOOD kind of debt. It demonstrates their financial strength. It takes $, to make more $$$, right? The CEO of SN#N would never be given this level of credit/trust, not with BKs, foreclosures and fraud... AMFE is the exact opposite

AMFE's other debts are mostly low interest and/or short term loans that are being paid back with profits and some shares... They rarely dilute, but even if they had to, they could wipe the non-inventory related debts off the books with only a minor amount of shares at this and higher valuations, but there is no hurry. They appear to be managing it well. Cash is flowing in STRONG. AMFE is NET profitable... and their growth is accelerating BEFORE several major initiatives have even kicked in. Plus, overhead costs will reduce now that Midtown is making $$$... i could go on and on..

From what i understand, the Franchise Promissory Notes are actually payments from 2 Franchisees ($125K/each), to secure locations. It counts as debt now because AMFE has not fulfilled their half of the deal yet and would lose it if they dont. I could be wrong, but thats the way i think it works...

This story is as easy to read as any that you will find in pennyland... There is REAL Billion dollar valuation potential here. Do the DD, do the simple math. Most pennies are not this healthy at these early stages, while investing heavy in expansion...