I'm afraid you're probably wrong. There is long-term value in the company if they can get their act together. The move documented in the 8k was incredibly stupid, but I guess they were willing to sacrifice $751K in short term market capital to get rid of a long-term $45K debt headache that was probably threatening to sue.
The problem is, most of the shares (60%+) (at least prior to the 8k) are owned by insiders or former executives. So, from that perspective, the management and directors are vested in the company. The downside is there really isn't much float, so the stock price cannot really move unless an outsider sees value in it. The big question is who did the selling during the last couple of days? This was a really smart deal for the 7 parties involved because 55 million shares divided equally by 7 parties puts them all below the 10% ownership disclosure rules unless they previously owned large chunks of stock. The question is was the sales simply these 7 parties liquidating their positions for HUGE gains (remember 55 million shares at .007 is collectively an 8.5x return on investment), is it the perferred stockholders exiting, or is it little people selling at losses? My guess it is the former (i.e. the 7 parties liquidating for huge gains): if that's the case, then the stock price is going to be driven into the ground until they have completely exited their positions or until they magically decide they want to go long the stock.
In any case, there is positive news: the company has been continually ridding itself of debt (the Q in 44 days will continue to show that), it has majorly slashed costs with the resignation of 3 execs, it has majorly slashed accounts payable/short-term liabilities by getting the 3 execs to wave their right to past-due salaries, and the company has majorly cut their rent by moving (has anyone else noticed their address is different). So, now, if they can get to the point where they can get some trajectory and start having net revenues >= expenses, the stock's long-term prospects really are there. And, I think this is what the CEO/CFO has in store for the company if the product is truly viable in the free market.
