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Main product is a GoFundMe plea to naive investors.
Best to chalk it up as a learning lesson. Gary and Magen made millions off the backs of common shareholders. Red flags were everywhere. CEO and CFO compensation, marriage between the CEO & CFO, reverse splits, dilution, acquisitions of businesses that produced nothing, company revenue vs. debt accumulated, the list goes on and on.
From just under 20 million outstanding shares after the 1:200 reverse split to a current outstanding share count of 513 million with another 100 million being added to 613 million. Talk about dilution.
THE OFFERING
Common Stock Being Offered by the Selling Stockholder
100,000,000 shares of common stock
Common Stock Outstanding Before the Offering
513,337,571 shares (as of June 26, 2023)
Common Stock Outstanding After the Offering
613,337,571shares (assuming the issuance after the date of this prospectus by us to ClearThink pursuant to the Purchase Agreement described below of all of the shares that are being offered by this prospectus)
This statement is stated in their 10-K. Reminds me of a current drunk driver stating they desire to become a drivers education instructor. "We are striving to become the leader in the market for interactive flat panel technology, associated software, and peripheral devices for classrooms".
Immoral, unethical, unscrupulous people lie for their own personal gain. Personally I'm thankful that Magen left teaching to pursue this business venture instead of having an influence upon impressionable children and that Gary and Magen will most likely spend years and most likely most of their ill gotten gains in court defending themselves against forthcoming lawsuits.
Correction: New 52 week low of $.00050 reached. This company is comparable to being hit by a semi truck which then backed up.
New 52 week low of $.00055. The downward trend continues.
Question to consider as an investor. If you were a school purchasing official would you make a major purchase from a company that has a stock value of $.0006? Most school purchasing officials research companies prior to placing major purchase orders along with the product warranty. Personally at the rate of decline GAXY is experiencing I would be concerned that the company would be out of business by year's end.
Gary and Magen may have worked out the company's supply chain issues but now they have to work out how to find the money to afford gas for their delivery vehicles should they receive another order. Cash on hand is most likely zero unless Gary makes another personal loan to the company with interest attached.
Still waiting for Gary and Magen to inform shareholders about the delisting from the OTCQB to Pink. Must be taking some effort to put a positive spin on that accomplishment.
Galaxy Next Generation Inc (PK)
Anyone else notice a lack of attendance at these small cap investor conferences that Gary and Magen use to attend around the country. I keep forgetting that they stated in their March 9th 2022 shareholders letter that the company wasn't being taken seriously as a sub penny stock company (One of the main reasons for the 1:200 reverse split). At that time the stock price was 5 times higher in price than it is today. How seriously do you think they would be taken now?
I keep reading Magen's past shareholder updates about how the company is expanding, revenue is increasing each quarter, how they were expecting back in 2021 to uplist to a major national stock exchange within 12 months, how their business plan was going to benefit shareholders etc, etc, etc. Reality check-The only revenue increase has been Gary and Magen's personal wealth. Sales have been decreasing, debt increasing, stock has been delisted from OTCQB to Pink, outstanding share count has increased from 20 M to over 230 M (dilution) since the last reverse split conducted on March 8, 2022 with a stock price decline from $.78 to $.0007 in the same time period.
Probably the reason for allowing themselves to be delisted from the OTCQB to pink sheet. Financial disclosure is no longer a requirement.Probably the reason for allowing themselves to be delisted from the OTCQB to pink sheet. Financial disclosure is no longer a requirement.
Latest analyst opinion. Based on the latest financial disclosure, Galaxy Next Generation has a Probability Of Bankruptcy of 74%. This is 82.9% higher than that of the Technology sector and 82.85% higher than that of the Consumer Electronics industry.
Don't be surprised when they conduct another reverse split without informing shareholders. Transparency is something they seem to be lacking recently. It would require a 1:1000 reverse split just to be at the same price level immediately following the 1:200 reverse split conducted on March 8th, 2022.
Initial application fee is $2,500. Annual fee of $10,000 to be listed on the OTCQB exchange.
Newly applying entities must pay an initial application fee of $2,500, which fee is waived for existing OTCQB entities. All OTCQB companies will be required to pay an annual fee of $10,000.
GAXY downgraded to Pink sheet. Once downgraded to Pink sheet a company is no longer regulated by the SEC. Financial disclosure is no longer a requirement as it was on the OTCQB. Should Gary and Magen desire to uplist to the OTCQB exchange again they need the stock price at a minimum of 1 cent plus they may have to pay the $10,000 OTCQB listing fee again (Not positive how that works).
I wouldn't begin to get excited until at least reaching 1 cent. Under that amount Gary and Magen have to conduct either a reverse split or be delisted from the otcqb to pink sheet. If pink sheet is their option the stock becomes an extremely risky investment due to no SEC oversight or financial disclosure being required. The summer months are usually the height of school spending prior to the start of the next school year.
Does anyone else see a pattern here. Whenever GAXY stock reaches a new 52 week low a new purchase order PR magically appears. Another carrot for all those retail donkeys to reach for and invest their monies.
Gary and Magen submit name change to company from Galaxy Next Generation or GAXY to Small Company Amassing Momentum or SCAM as new stock abbreviation.
GAXY actually set 3 new 52 week lows since the actual closing price was $.000693.
Establishing two 52 week lows in a single day is impressive. Very few companies can manage that. $.00075 to $.00070 from the previous 52 low of $.0008.
GAXY manages to do it again. New 52 week low of $.00075
Hope everyone took a snap shot photo of GAXY stock reaching one tenth of a cent ($.001 instead of the usual triple zero's of $.0008 to $.0009 price range).
Loved the first paragraph from their latest shareholders update: 190 billion dollars in extra Federal financial aid was allotted to public K-12 schools during the Covid pandemic to spend as schools wished. I wouldn't exactly call that an already challenging economy. Congress authorized more than $190 billion to help America’s schools reopen and stay open during the pandemic. GAXY simply refused to take advantage of this once in a lifetime opportunity. Dear Shareholders, As we have mentioned previously, the last 9 months have been a transitional period for the company. We not only transitioned in our product offerings, but in our approach to market causing a temporary down shift in revenues in an already challenging economy.
]Usually takes 5-7 months of being sub penny before the SEC takes action to delist a stock from the otcqb to pink sheet. Gary and Magen have probably received at least one warning letter possibly two by this time to meet the minimum price requirement of 1 cent to remain on the otcqb.
For those unfamiliar with the difference between the otcqb and delisting to pink sheet which GAXY is headed towards. OTC pink sheet stocks lack regulatory oversight by the SEC which includes the required disclosure of financial statements. Companies that are experiencing financial distress may consider delisting to pink sheet to avoid financial disclosure which opens the door to fraud. Pink sheet stocks also trade more thinly making it harder to sell when the investor wishes.
I'm a bit confused. Wasn't it Gary and Magen's original plan to investors to uplist from the otcqb to a major national exchange? They seem to be working very hard to delist from the otcqb to pink sheet. Absolute joke of a company.
Mentioned it a while back. Whatever business model Gary and Magen developed and utilized should've gone into the office shredder.
Outstanding share count 230.64 million. Trading volume this week as follows:
Monday 6-5-23 (52,717,481 shares) close $.0010
Tuesday 6-6-23 (77,187,956 shares) close $.0011
Wednesday 6-7-23 (47,474,181 shares) close $.0010
Thursday 6-8-23 (72,154,883 shares) close $.0008
Total trading volume equals 249.534,501 shares with a price fluctuation of between $.0008-$.0011 which is indicative of a share structure lacking any significant value.
New all time low of $.0008. Getting difficult to keep track of those zero's.
In my opinion GAXY is a form of pyramid scheme. Management (primarily Gary and Magen) are at the top (total ownership with all voting rights along with a yearly compensation of $800,000). Next comes the former Series F Preferred convertible share holders who converted their shares to common at the guaranteed price of $.37 a share (Galaxy Next Generation Announces the Conversion of the Majority of Series F Convertible Preferred Stock into Common Stock at a Price of $0.37). Finally at the bottom is the retail investor who finances the top two levels.
Reverse split with probably a 50 percent decline in share value immediately afterwards. Look at the last 1:200 reverse split conducted on March 8, 2022. Share value was initially $.78 immediately following the split then declined to its present value of $.001, Reverse splits of otc stocks are almost always recognized by investors as an act of financial desperation.
Another 47.5 million shares traded out of 230 million outstanding shares and the price only fluctuated between $.0011 and $.0009. Absolutely no value attached to shares.
230 million outstanding shares with 78 million being traded today and the share price fluctuated only between $.0009 and $.0015. Hard to pinpoint the source. You had the series F convertible preferred stock shareholders who converted their shares to common stock and you have ClearThink Capital under obligation to purchase shares. Either way, trading basically worthless shares will not move the price significantly.
Massive trading volume this past week. Outstanding share count just over 230 million with over 52M traded yesterday and over 60M traded so far today. Unfortunately when a stock becomes basically worthless in value volume doesn't matter much.
A $200,000 purchase order doesn't equate to a 30-40 percent increase in share price. Market manipulation in play. GAXY has already revealed it true price range between $.0009 and $.001.
GAXY only needs a 900 percent increase from $.001 to $.01 to remain on the otcqb exchange. Gary and Magen have done a wonderful job running this company.
A quick comparison between being an owner of a McDonald's franchise (average profit of $150,000) and being the owner of GAXY (average profit of $800,000).
Some McDonald's franchise owners are naturally going to make more than others, but most franchise owners still pull in an estimated yearly profit of roughly $150,000 (via Fox Business). A profit of $150,000 after $2.7 million in sales isn't even 6 percent, but after food cost, supplies, crew payroll, and about a dozen other costs handed down by corporate, that's what franchisees are left with (via Bloomberg).
Official 2023 compensation packages for Gary $550,000. Magen $250,000. Four more such contracts and their salaries will be paid for.