Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Pension, with all due respect. The dilution is not over. The company will continue to sell shares every month as they have for the last several years to cover their significant shortfall in cashflow. last quarter they had to raise about $70,000 per month to cover operating expenses of $110,000. they will continue to have to do that for as long as they continue to lose money and to be cash negative.
So saying dilution is over is 100% incorrect. Dilution is ongoing, and there is almost no likelihood that will change any time soon.
This is the 4th year in a row that I have read many posters on this forum say..."this is the big year for the company, we will know at the end of the year if they are going to make it". Many said it when the OOB patent was issued, said it again when the Guardid keystroke patent was issued and now saying it when the mobile product is released. REally, why will anything change. They will keep selling stock, paying themselves for as long as people will keep buying it up.
Shame...
You are both wrong. So they go to 4.5 million shares. They are still going to dilute. They are still going to have no earnings, they are still going to have very weak sales, they are still going to issue made up phony press releases, they are still going to be late reporting revenue and earnings every quarter even though there is very little revenue and no earnings. The management will still have 80% of the voting shares post split and in fact management will not have suffered at all from this reverse which is their 2nd. The company will still have $12 million of preferred debt which gets paid off in any sale of the company BEFORE shareholders get any proceeds.
This is a dog with a new coat. Same dog, same model, same results, just a new coat paid for by a 1500 to 1 reverse split.
Pension, I would think that there is 0% chance the debt holders of SFOR would trade debt for equity. here is why
1. The debt is preferred so they get paid before any shareholder get any proceeds in sale
2. The stock only goes down. so the minute the debt was converted, if SFOR keeps up its 14 year unbroken history, the stock will start going down and keep going down until it gets back to 7 billion shares issued and a price of .0001
3. debt holders are usually the biggest sharks in the pool. The last thing any of them would want is SFOR stock. IT ONLY GOES DOWN, 14 YEARS OF UNBROKEN DECLINES AND NOW 2 REVERSE SPLITS.
Not going to happen.
This has nothing to do with SFOR technology. You all think that they solve all problems like Target. In fact they have nothing to do with most. Apple is a sandbox approach where mass attacks that is attacks against the broad audience are impossible. This deals with 1 on 1 attacks. SFOR is not in this market.
And again, Apple would never do business with a paper mill, insolvent company.
I have been around this market for many years. Big companies vet both the available technology and the companies. SFOR would never pass muster before they look at the technology. They are an insolvent company that looks to be a paper mill. they have no technology that is not available elsewhere and another fact is that there has been no interest in the keylogging technology that SFOR boasts for mobile devices. That is on the Samsung and Google side. Apple has a closed system so security software is irrelevant, from SFOR and all others.
The company might get some niche deals, likely for some free to paid model, but the company would never pass the smell test of the big players and none of the little players can move the needle even fraction of 1%
Sad but very true.
In this case I think the past, near past and present are very good predicators on what the near future of SFOR will be.
Let me tell you why. The management is not getting washed out in the reverse like all of us. they maintain all of the control via super voting shares, they have preference to the debt portion, and so while we all got washed out, they can and will start issuing shares again right away because it has no adverse effect on them. another good example of the past repeating itself over again. They crammed down shareholders 6 years ago, are going to do it again in a few weeks and the ball starts over again.
and to anyone who knows about technology. Getting traction in the PC software marketplace was and is challenging but in the 14 years existence of SFOR hundreds of companies went public and were acquired. They failed. the mobile software/app space is 100x more difficult to penetrate as it is a market controlled by 3 companies, Apple, Samsung and Google. SFOR technology is not relevant on Apple mobile devices and Google and Samsung would never do business with SFOR, nor would ATT, Verizon, Sprint, T Mobile, et all. That leaves well nothing.
Hey everyone, how did the promotion go to the 1 Billion facebook users? The next promotion wont be any better, but I would absolutely bet that the PR is more refined, with a lot more "excited's" from the CEO.
this is the greatest tomorrow, next week, next month, next quarter, next year stock that has ever been publicly traded. I have watched it go from 3 cents to .0001. and every step of the way 7 billion new shares later, the CEO remains very excited. I wonder why?
Pension, here is what "informed" investors look for.
1. REsults
2. Honest communication
3. Real information about the business
4. Results
5. Some upward trend, any upward trend, any trend that is not straight down
14 year old company, never made a profit, $40 million in cumulative losses, $12 million in preferred debt (means shareholders will never see any money from this), and management that has not been truthful on this forum in direct communication to all of us.
I would love a pair of your glasses, the view from them must be really amazing
That is the pity in this stock. they cannot sell shares based on results, so they need "buzz". Buzz has dropped there stock by 99.98% the last 2 years. I know you SFOR lovers will say it was everyones fault but certainly not that they have a terrible business, very poor management and bad customer skills. Buzz is now what they are relying on. Great...
Needy, the "burst in volume" was the company selling another 350 MILLION shares to pay for their flight and hotel rooms at the next conference. 350 million shares at about .0001 net proceeds is $35k in cash. what a shame that this is what it takes to keep this thing alive.
So if no insider info, who is saying that they have cash. the have raised about $200k in fresh cash the last 2 months which is shame as it came at the expense of 2.5 billion new shares issued. They ended Q3 with $9,000 in cash. SO WHO OUT THERE ON THIS BOARD IS SAYING THAT THEY HAVE CASH AND WHO TOLD YOU THAT?
OT how do you know about the cash position? THis is not publically available so how would you know this?
But not really surprising. THey have dumped more than 2.5 billion shares since December so they have to have some cash. Unfortunately your statement that it came from customers does not fit with the number of shares dumped into the market.
My prediction is that they will not announce earnings before the split. They usually take the maximum amount of time allowed and then ask for an extension. We'll see.
But again, which insider in the company told you about the cash position?
This is funny. SFOR has already exploded. the shares outstanding exploded in 2013 from 300 million to 6 billion, the share price exploded downward by 99.8%, the # of inane, nonsensical PR's from them exploded upward and at the end of all the explosions is a stock price of .0001 and a 1500 to 1 reverse split. How much more explosion are you looking for??
The only way SFOR stays in business is by selling shares. 3 Quarters ago, when the outstanding shares were at about 500 million the CEO sent an email on this forum and said he would never split the stock and that all the authorized shares that were not issued yet would stay that way. 9 months later, with outstanding shares now past 6 Billion, the stock is being reversed split 1500 to 1.
This is a 14 year old company that has lost cumulatively $40 million, has almost no revenue and has NEVER made a profit. This is the 2nd reverse split in 6 years.
If they cannot sell more shares, they are out of business as they have no real business it seems.
I think Q4 revenues in the $70k range. The CEO will say that they have many promising deals in the works but of course he cannot tell us when they will come to produce revenue if ever. There will be the normal whining about law suits and how unfair everyone is treating them. The one thing that is certain is that they will not mention that they sold almost 6 billion shares in 12 months, that the company revenue was 60% lower than his guidance at the end of Q1, that he acknowledges that he told shareholders he absolutely would not split the stock, that all the issued shares would never be sold into the market, etc. etc.
REMEMBER, if nobody buys shares next week, they are out of business. That is how weak the business really is
365 million shares sold today, most if not all new shares so further dilution. at this price SF management sold 1/3 of a BILLION shares and raised a whopping $25,000. I still don't understand why anyone would be this junk
SFOR will RS then drop by 50%. Company revenue declining by more than 50% year over year, no interesting customers, no big customers buying their "Patented" products and only mobile SDK on the horizon an incredibly crowded space
14 year old company
Never made a profit
More than $40 million in losses
Revenue declining by 40-50% annually
$12 million in debt which gets paid first in a buyout before shareholders get any money
2nd time management has reverse split the stock and washed out the common shareholders
CEO came on this Board a few quarters and in a letter to shareholders told us not going to reverse split and not going to see billions of new shares issued. Both of those were outright lies
Mgmt has "super" voting shares that will not be affected by the reverse split. So basically they have bankrupted the company but they alone are not affected
The company is legally insolvent. They cannot survive another week without dumping more shares so the reverse split will only start the process again
Company has released multiple press releases quarterly with no substance just to sell more shares
Company has been issuing press releases on the mobile products for 6 quarters and still has not released any product
There will never be a buyout. The existing patents are worthless and reflect the complete lack of interest in big partners and the massively declining revenues off an already small revenue base.
We ALL got scammed
Trackkwizzard, is this the same CEO who came on the forum and told all of us that there would never be a reverse split? IS this the same CEO who came on this forum and told all of us that none of the authorized shares would ever be converted and issued? This guy only looks out for himself. He reports vapor, ignores operating results, misleads on partner growth, and has blatantly told us false statements. But, you want us to listen to his podcast? He has no choice but to get on as many forums as possible to get people to buy his stock. If people stop buying his shares then the company is out of business.
THIS IS A 14 YEAR OLD COMPANY and it is useless
I agree trackkwizzard we will see 3's soon. the CEO is going to RS the stock to about 15 cents and very quickly it will be at 3 cents.
Someone just posted "do or die" on the mobile products. if you have been on this board for a few years you would have seen the same thing about their OOB patent, and their keylogging patent. Do or Die. well unfortunately we all died. they issued 5.6 billion new shares, drove the price to .0001, saw their already anemic revenues decline by 65% and then after vowing to shareholders on this forum less than 3 quarters ago the CEO splits the stock 1500 to 1
My prediction is that Q4 revenue will come in around $75,000 and they will have lost another $300,000. No revenue, but PR's are up almost 80% for the quarter.
GARBAGE
This is the 2nd time this management team has crashed out common shareholders. They are going to try to get us into the rinse cycle again so we buy shares again. This company is a disaster, and I think their Q4 results will show that. But Mr. KAy will surely be excited about all of their prospects.
Company has no future but down and down
Just unbelievable to me that we get diluted 1500 to 1 and the 3 senior execs including the CEO are just fine, completely whole. and since they control all the voting shares they cannot be fired or removed from their jobs no matter how poorly the company performs. this is not a public company in any way other than they have shares available.
the ONLY way to remove them from office is to stop buying shares. And believe me, they will be out selling shares immediately.
This is a BS move by sketchy management. I have changed my mind, I now think Scotland Rules is right...this is a complete SCAM
The 14c is interesting. Kay and the other execs have non-dilutive voting shares so that guarantees that they always have 80% control. Dilute by 5.5 Billion shares in 12 months...NO PROBLEM because it did not affect their ownership. What do you think of a management team that has NEVER made a profit, cannot generate sales, drowns out all common shareholders and never get diluted themselves. These guys have nothing to lose. Now I understand why they are a Wyoming corp. This state allows this type of shady corporate governance.
I just glanced through the report but did see that the 3 Preferred shares that are owned by the CEO and the 2 other executives are exempt from the split which means that they still control I believe something like 80% of the voting shares. that is why the 14C says that this is an announcement only and not up for shareholder vote. In just a little over 12 months they went from 300 million shares to 6 billion. Now back to 4 million. How long to 4 Billion? Anyone care to guess?
The only ones holding the price down are the management. They are issuing billions of new shares and their business results are terrible. They ONLY lose money. They NEVER make money. So the stock is at the lowest allowable price of 1/100th of 1 Penney. The management is killing the company, not some nuisance investors buying and selling small amounts of shares
I think Belinda is spot on. The press release today is the 5th or 6th time in the last 9 months they have issued a press release on the mobile products. they still are not available, still have no customers, have not told shareholders how they will monetize the products, etc. This is a tired company recycling old products that nobody seems to be buying. I also think that they will RS at 1 to 100 and down to about 50-60 million shares. But the issue is going to be that they still don't have revenue. If the products are so good, and the CEO is so "Excited", why doesn't any partners make good strong deals.
14 year old company, never have made a profit, more than $40 million in losses, $12 million in preferred debt that has to be paid off in an acquisition BEFORE shareholders get anything. There is just too much wrong with this company and issuing another baseless PR that ignores revenue, business model, partner deals, is insulting. I don't agree with Scotland that they are a fraud, but I also think that they are not far off that now.
Why have they not announced Q4 and 2013 results. Does anyone believe that it takes 6 weeks to do the accounting? The reason could be that the results were so bad that the wanted to sell another 3-5 BILLION shares before announcing to build a cushion. We will see soon.
SFOR is a 14 year old company. THey have $32 million in operating losses, have never made a profit. They also have $12 million in preferred debt and all that money is gone. so losses of more than $40 million, their revenue is at about $50,000 per month, their expenses run $110-140,000 per month and the only way they stay alive is by selling shares.
IF someone came and offered $10 million for the company, the shareholders (myself and all of you) would get NOTHING. the first $12 million of any sale would go to the debt holders. And we all know this company would never sell for $12 million, it has no real value as they can demonstrate no market success, even modest success
The stock is worthless until the enterprise value gets in the $20-$25 million range and that is not even remotely possible now. Even successful outcomes on 1 of the lawsuits will not get it to that level.
But most shareholders do not know about the preferred debt and just keep on buying. And of course SFOR is happy to keep on selling because if they don't they would have to file chapter 7.
OT you are right. anyone buying at .0001 might make some money but it is limited. this stock may go up based on news, but it always comes down based on real results and dilution. Today another 1 billion shares were introduced into the market at least and I would bet that there are multiple billions left to go.
the stock will reverse at 10 or 20 or 100 to 1, then it will fall by 30-50% (THEY ALL DO) which means that those shares that you bought at .0001 that you believed cannot go down actually can.
It may go up on some piece of fluff news, and buyers like you who are in at todays prices will make some money. But you were a seller a quarter or 2 ago and at a loss so anyone who has been in this stock even 6 months is dead. That is reality
Now if the company can actually get going, get revenue, attract good partners and KEEP them, get to +$2,000,000 in revenue then this might change. But I just don't see that happening. 14 consecutive years of losses and after 14 years in business revenue of only about $500k. There is nothing here I am afraid and as I have said in the past this company is legally insolvent. they cannot survive 1 more week without selling shares. the shame is that there is no disclosure on those shares so new people coming in and buying have no idea what they are getting into
Stargazer if you have been in years then you are in at probably around 3 to 5 cents. much like me. there is no possibility we will ever see 2% of our investment but at this point does not make any difference in selling. One day this company will be sold, but it will be sold for some % of debt owed, and shareholders will get nothing imho. That is one of the reasons the stock is at 1/100th of 1 PENNEY. Investors know that there is no value in the common, only in the debt, but as long as they can buy shares from the company at a 30% discount with 3X coverage on collateral shares they will keep churning. They are the only ones that will make any money on the stock and the risk they take is that at some point there is no buyers for the shares. That is inevitable, but who knows when.
another fresh Billion shares come off the printing press and are sold. this wash/rinse cycle keeps on and on ....
You don't need to buy the shares to own the company. the shares are basically worthless. to own the company you have to buy the debt which is at +/- $12 million or about 30X the market cap of the company. todays volume must be all new shares.
Has anyone tried to sell at .0002? any takers?
I don't understand why this volume is such a surprise. The only way the company stays in business is by selling shares. THey need $100,000 per month. That means at the current price of .0001 they have to sell about 1.5 Billion shares. So they are selling shares to make payroll, pay bills, etc.
My concern is that this is also a signal that Q4 was a big disappointment from a revenue standpoint. I would think their revenue dropped from Q3 which is bad. it also does not help their patent cases as patent settlements are framed by value and so far given their revenue, their patents have almost no value.
I think they waited to get to January to dilute. OS at the end of 2013 will be in the high 2 billions and I believe this month alone they have sold about that amount but thy don't have to report that until May.
virtually all lawsuits, especially in federal court get to the discovery phase. So far that is the ONLY thing that has happened. Nothing good, nothing bad for SFOR. Just a long road ahead and massive dilution for common shareholders like us. Not good
Sorry Bull but you are wrong. Every company that is involved in legal action with SFOR knows their status. The company is legally insolvent and all are aware of this. they cannot get through this month without selling at least 1 billion shares, and through the quarter without selling 4-5 billion shares. The stock price is killing the shareholders like you and me. SFOR gets 70% of the share price or $70,000 per BiLLION shares. Since they need $120,000 per month, well we can all do the math.
These lawsuits are window dressing. IF the Patents were rock solid then Blank Rhome would have sued dozens of companies. OOB is used all over the world. Instead they have sued a very few and one of them counter sued alleging SFOR infringed. With appeals, etc this will take years
In the meantime the only hope is to get acquired, but with $12 million in preferred debt that is paid first before any shareholders get any money, the odds that anyone would even pay that amount are -0-. THe patents are largely worthless as they directly reflect SFOR's revenue which is also largely worthless.
There is NO good news in these lawsuits. Since they have started the number of shares outstanding has gone from 300 MIllION to probably over 3 BILLION. anyone "long" on SFOR is just not looking at the whole landscape.
The only way to get some dollars back for shareholders is to hope for some good news, real news not the fluff PR that they normally put out, and that the shares can get to maybe 1/10 of 1 Penney. That is it, maybe catch a bounce. IF the company does a Reverse Split, which seems likely, then the shares will split and drop by half.
Does the image remind you of water circling a toilet bowl. It does to me
Bull your statement is completely wrong. In every lawsuit the sides file dismissal motions which are rarely granted. it is not a victory and has nothing to do with which side will prevail at trial. So the authetitfy ruling was a non-event and worse for SFOR it delayed the next step of the lawsuit for 4 months so in effect that means we paid for 4 more months of losses which I believe meant another 1.5 billion shares of dilution.
In all of the SfOr lawsuits there is no good or bad news yet except the bad news that Sentinal insurance is not obligated to defend SFOR so they have to pay their own legal fees in the fight against Authentify.
Odds are not good that SFOR will make it to the end of these lawsuits and odds are 100% that they wont make it without a RS so they can sell more shares
SFOR believed that Sentinal should pay for the legal defense on the Authentify lawsuit. Sentinal sued for a declaratory judgement, basically asking the judge to determine if they had any legal and financial obligation. The judge declared that Sentinal had no responsibility so therefor, SFOR now has to take on all of the financial obligations in defending themselves in the Authentify lawsuit. I believe they have already said that they are paying for the Whitesky lawsuit as well, that is not a contingency arrangement. So now a company with no cash, almost no revenues, is going to fund 2 lawsuits that will both run for another 2 years at a cost of more than $1 million dollars. I million dollars at the price of the stock right now factoring in the 30% discount is something like 14 BILLION shares that they will need to sell to pay the legal fees. This is not good news
It means that Sentinal does not have to fund the defense of the Authentify lawsuit against SfOR. so SFOR has to pay the defense attorney's out of their own cash flow, which as we all know does not exist. There is no contingency arrangement with attorneys when you are defending a lawsuit. Massive dilution coming, on top of the 3 billion share dilution over the last year.
This is not good. SFOR has no cash and these lawsuits cost more than $500,000 to defend even on the cheap. Now they are going to get taste of spending real $$'s on legal actions and not just contingency %'s. They do not have any money to spend, and at todays prices they would have to sell another 3-5 BILLION shares to pay legal fees. This is not good.
3 or 3.5 billion shares at .ooo2 is $600 or $700,000 market cap. at .0001 it is $300 or $350,000.
either way the company is technically and legally insolvent. When there are no more buyers...there will be no more company.
Dilution machine cranked up. I would bet that more than 1.5 billion new shares were issued in January. Coincidentally these new shares will not be in the Q4 earnings and balance sheet. Interesting timing
Doumome,
let me start again. SFOR is getting no interest from potential acquirers because:
1. They are also getting no interest from potential customrs
2. They have almost no revenue
3. They have $12 million in debt
4. They have more than 3 billion shares outstanding
5. In 14 years they have NEVER made a profit, and have lost More than $32 million dollars
6. The technology is not that compelling (see #1 & 2 above)
Hopefully this clears up any confusion you had or have