Great Elm Capital Group Inc (GECC)

[Stockexpertpro]

100 Mil UPIP Will Burn that in no time look at their Cash Flows -70 Mil -44 Mil -21 Mil Total Cash Flow From Operating Activities (69,944) (43,628) (21,485)

UPIP there was $2.9 million of total unrecognized compensation cost related to all unvested share awards and options. But Those Options are all in the green this morning so i am betting more dilution coming and oh how this company Loves to Dilute

the Company recognized stock based compensation for employees and directors of $0.9 million and $1.3 million, respectively.

the Company issued 391,593 shares of common stock for vested restricted stock grants at par value

the Company issued 959,815 shares of common stock for the exercise of stock options



the Company issued 7,530,120 shares of common stock at a price of $1.66 per share

the Company had 109,934,247 shares of common stock issued and 109,559,772 shares of common stock outstanding.

so I guess add another 2.9 Million Shares since they will cash those options in now since they are finally in the green

the Board approved an amendment and restatement of the Company’s Amended and Restated 2006 Stock Incentive Plan (as amended and restated, the “2006 Plan”) and of the the Company’s 1999 Director’s Plan (as amended and restated the “Directors Plan”) that increased the number of shares authorized for issuance under each plan by 2,000,000 shares to 19,000,000

$22.1 million was allocated to the Senior Secured Notes (“Notes”) bearing an initial interest rate of 12.875% per annum and maturing in June 2018. 12.8% They sure do pay a high intrest rate


the Company issued Indaba a total of 2,481,365 shares of common stock

Income Statement
Revenue (ttm): 115.00K Hardly NO REVENUES
Revenue Per Share (ttm): 0.00
Qtrly Revenue Growth (yoy): N/A
Gross Profit (ttm): 121.00K
EBITDA (ttm)6: -32.10M
Net Income Avl to Common (ttm): -35.63M Loss 35.6 Million Dollars
Diluted EPS (ttm): -0.36
Qtrly Earnings Growth (yoy): N/A


Balance Sheet
Total Cash (mrq): 51.10M Add in the 100 Million 151 Million Subtract out the 24 Million in Debt that is bearing sky high intrest rates of 12% or more leaves you 127 Million like i said this deal was done priced into the stock before the move up in AH the market cap was around 130 Million Dollars before the move up AH now the market cap is closer to 250 Million Grossly overvaluing the stock and the company Strong Sell also need to account for losses and cash burn -35.63 Million in Losses and cash flow negative as well so yes 1 time injection of cash but that just gives them more money to burn....
Total Cash Per Share (mrq): 0.47
Total Debt (mrq): 23.83M
Total Debt/Equity (mrq): 54.46
Current Ratio (mrq): 7.29
Book Value Per Share (mrq): 0.40 This should go up to around 1.30$ Stock is trading around 2.30$



We did not recognize any license fee revenue during the three and six months ended December 31, 2013. During the three and six months ended December 31, 2012, our license fee revenue was from one customer in the amount of $3,000 and $6,000, respectively. Although we intend to broaden our customer base, there can be no assurance that this objective will be achieved.

Cash Flow Statement
Operating Cash Flow (ttm): -37.50M Burning cash faster then a oven 100 Million at this rate is what 2.6 Years worth of cash for them to burn

Levered Free Cash Flow (ttm): -24.49M

During the six months ended December 31, 2013, interest expense increased to $1.8 million compared to $3,000 in the corresponding period in the prior year. The increase was the result of the Company issuing Senior Secured Notes in late fiscal 2013 and associated “in- kind” interest payments and amortization of debt discounts and deferred issue costs.

Operating Income or Loss (39,491) (8,970) (7,337) These guys have Loss Millions over the past 3 years never turning a profit

Total Revenue 121 15,050 4,019 Hardly no revenues over the past 3 years either
Strong Sell

Retained Earnings (3,194,848) (3,187,555) (3,180,369) (3,171,659) They sure have managed to LOSE alot of Money Puke STRONG SELL

Total Stockholder Equity 43,760 Add in the 100 Million 143 Million NOT 250 Million as the current market cap suggest at the open today Strong Sell Short

Total Cash Flow From Operating Activities (69,944) (43,628) (21,485) UGLY Burning cash faster then a oven look at those cash burns 70 Million 44 Million 21 Million

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9756382-1140-100926&type=sect&dcn=0001193125-14-039590

Just some DD either way UGLY Plus the Chart is UGLY as well and given the above fundamentals its no wonder Strong Sell on the news

Chart below 2$ is off the chart for this stock and its no wonder 110 Million Shares and more dilution Coming Strong Sell Short Sell