Paychest Inc (PYCT)

[mortalmyth]

PYCT DD Pt 1 (Share Structure, Financial & General Info)

This Part 1 Due Diligence installment addresses the Share Structure, Financial Status, and General Corporate Info for Paychest. Once again, I wish to thank some of the more vocal posters on this board for providing me with the motivation to stick around and pull together summaries such as this while we wait for the next Paychest PR to be issued.


Share Structure:

* (Caution) Currently +27 Billion Issued and Outstanding PYCT Shares (at A/S limit).

* Over 20 Billion New PYCT Shares Issued Since 2004, Resulted in About 265% Added Dilution and a Share Price Plummet to an On-going NO-BID.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=80524535
* Over 5.4 Billion New PYCT Shares Issued by New Management Since Oct. 2010.

* NO 5% Owners Identified Even After 20B Shares Issued, Indicates Insiders Selling Shares.

* (Caution) 2012 Year-End Financials Should Show Insider Driven Issuances & O/S Increase (per PYCT Statement of Cause of the DTC Chill).

* (Beware) PYCT Needs Share Restructuring Before Any New Funding Can Be Obtained (increase A/S limit and allow issuance for more O/S, or implement a R/S).

* JUN 10,2011==PayChest Completes DTC Stock Certificate Audit
* DTC Audits ('06 & '11) Didn't Identify PYCT Share Anomalies or Naked Shorts (see 2011 Annual Report).
* Formal DTC Audits Revealed Paychest Had Accounting Errors; Share Counts Were Restated.

* NOV 14,2011==PayChest: Share Buyback Begins
* NOV 18,2011==PayChest: First 100 Million Shares Retired in Buyback
* DEC 01,2011==PayChest: Share Buyback Continues
* (Beware) Paychest Issued Several Billion New Shares During the 300 Million Share Buyback.
* How Did Paychest Buyback Shares With ZERO Cash per the Financials?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81696282

* TA is Gagged as Paychest Won't Authorize For Any Disclosures to Public or Investors.

* NO MMs Currently Making a Market for Paychest.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77941640



Financial Status:

* PYCT Has ZERO CASH and an Encumbered ADVANCE for $200K (per 3Q2012 report).
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81508456

* Paychest Has Reported ZERO Sales Revenues.

* Financiers Are Currently Keeping Paychest Business Afloat.
* On Sept. 2011, Sold 565,000 New Preferred Shares; Now Eligible to Convert into Commons
* (Beware) Paychest Share Shuffle.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=80996055
* (Warning) Paychest Has Toxic Financing Arrangements per 2011 Annual Report.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81416358

* APR 16,2012==PayChest Receives $1.2 Million Purchase Order
* PO Currently On-Hold Due to DTC Chill in Effect.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81488792

* (Beware) NO Independent Financial Audit Has Been Conducted.

* Financial Documentation From Mr. Pillay Is Still Missing After 2 Years (per 2011 Annual Report).



General Corporate Info:

* Paychest Has Defined Articles of Incorporation & By-Laws.
* New PYCT Management Has NOT Updated Articles of Incorporation (as Defined in Financials).
* Paychest By-Laws Are NOT Being Strictly Followed (NO Annual Shareholder Meeting Ever Held).

* NO Full-Time Paychest Employees Currently Exist.

* (Beware) Two Investor Relations Representatives Paid for Years (But NO $ Available to Spend on Marketing or Sales).

* CEO Condo Used Rent Free as Paychest Office Headquarters.

* PYCT Has a Mail Slot Located in Houston, TX.

* A Consolidated List of 21 Questions From Various Investors Was Sent to Tom Hands on 6/15/12 (see link below). Status: Company has provided NO answers at this time.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77394990

* Paychest Has a Website.
http://www.paychest.com/faq.htm
* Website NOT Currently Updated with New Product or Packaging Details.
* Website Has a FAQ Section (Visited to see if any of the 21 questions submitted to PYCT were included, and if any answers were then provided. No new questions have been added lately, however, of what info was there, comments were offered on company responses to four questions).
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79339992

* Paychest List of Pros and Cons (Facts) and Assertions (Opinion).
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81689902