Protagenic Therapeutics Inc. (PTIX)

[DiamondFire]

Why does a year without Kazaa seem so exciting? ...or lol! even a quarter, this Q1 2012 for that matter?


1) The money that Atrinsic was LOSING each quarter from Kazaa was about $2 million according to their last 10Q of Q3 2011:

"Since inception on July 1, 2009, and through September 30, 2011, the Company has incurred $17.4 million of cumulative net losses, net of recouped funds in order to support the development of the Kazaa brand."

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8241320-1137-200955&type=sect&dcn=0001144204-11-064110
(Page 8)

....this can only help Atrinsic's bottom line now that Kazaa is in their rearview (and broken lol!) mirror....to do things like launch an Atrinsic Spyder and yes: pay off the remaining $3.5 million to Brilliant Digital. This leads to point number Two:

2) Atrinsic has the next four months until May 31st, 2012 to pay off the remainder of their debt. They plan to use their net proceeds from the sale of some of their assets as found in Fridays PR to pay their debt now down to about $3.5 million:

"We are required to repay the Notes in six equal monthly installments commencing on December 31, 2011 and ending on May 31, 2012, either in cash or in shares of our common stock."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8278910

and

"On May 31, 2011, the Company sold to investors Secured Convertible Promissory Notes (the “Notes”) in the original aggregate principal amount of $5,813,500. As of the close of business on January 26, 2012, an aggregate principal amount of approximately $4,100,000 remained outstanding on the Notes. The Company intends to use the net cash proceeds of $615,000 received from its January 23, 2012 sale of certain short codes, domain names, trademarks and databases used in the Company’s subscription businesses to Mkono Media Corp. to further reduce its obligations under the Notes."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8359552


3) Four months on the Kazaa/Quarter money pit scale would equal $2.66 million in LOSSES.


4) So just the fact that they are not LOSING this $2.66 million this year from ((RIGHT NOW to May 31st, 2012))....well lol! - couple this with the MONEY THEY ARE NO LONGER PUTTING INTO KAZAA i.e. Expenses which were more then the revenues coming in -- there's almost the $3.5 million needed to pay off the debt without even selling anymore assets...leaving less then a million owed. And that's why with their increasing Q3 2011 Transactional business, which doubled to $9.8 million in revenues for this one quarter, many here think that Atrinsic can handle this debt payment on even their Q1 2012 revenues alone!:

"Transactional Service segment revenues increased $4.9 million, or 100%, to $9.8 million for the three months ended September 30, 2011 from $4.9 million for the three months ended September 30, 2010. Transactional revenue is principally derived from our search marketing agency business, which consists of targeted and measurable online campaigns and programs for advertisers to generate qualified customer leads, sales transactions, or increased brand recognition. The increase in revenue was primarily related to sales volume improvement from existing clients as well as new client acquisitions during the third quarter. The increase was offset by the restructuring of our lead generation business in which we eliminated a number of unprofitable (on a gross margin basis) revenue lines. As a result of this restructuring, the bulk of our Transactional revenue
now consists of revenue generated from our search marketing agency business, together with higher yielding marketing campaigns." (page: 24)

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8241320-1137-200955&type=sect&dcn=0001144204-11-064110

...and that's why this year of 2012 sans-Kazaa looks so promising!