Remote Dynamics Inc (RMTD)

[flemsnopes]

The 10K is filed, but, in my opinion, is far too complicated for the average investor to readily understand. Revenues increased to 4,721,000 for a 612% increase over 2006, but the good news basically ends there, as far as I can tell. The stock based credit agreements loom large and are couched in such complex language that only a seasoned CPA could possibly untangle the details, but I believe the following excerpt from the 10K may sum up the 2007 damages.

Interest expense totaled $4,757,000 for 2007 compared to $680,000 for 2006. The current year interest expense primarily relates to the accretion of the Series A Notes, Series B Notes, and the HFS Note in the amount of $2,628,000, $625,000, and $616,000, respectively, as well as $812,000 of default interest and liquidated damages on the Series A and Series B Notes and $85,000 amortization of deferred financing fees.

I may post more of my views on the 10K later, but for now, it looks to this investor like the only hope for any gains will come from news of significant new business contracts. Almost $5 million in revenue seems like enough to at least suggest a potential value of more than .01, but that may be a tad optimistic given the complexity of the credit agreements, the apparent certainty of dilution, and the recent reverse split; all conspiring to scare investors away. Hopefully, management has a solid business plan in place and will execute so well the investment community will forgive some of what appears to be significant negatives.