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Actually, I think Cheeky is right on this one. The company may not be able legally to confirm that yet, but Sidoti looks like a buy side convention.
I am pointing to facts, not speculation like most of you are.
I already did.
Ok Cheeky - tell you what, everyone sell over the next week and get out of the way. I am done trying to explain the specific aspects of what they reported, and why they reported it. If you choose to read things the wrong way thats your prerogative and you have every right to feel the way you do.
And if you don't understand something, call Lorraine and ask her. Its better to hear it from her than posts here.
Instead of saying to yourselves, well, let me sit back and try to understand this, a long read of 2015 will tell you the enormous pressure your CEO is under to keep moving in appositive direction.
Yea, it looks scary, but when you peel the brown skin off the banana, you can see the unbruised fresh banana. I am telling you, if you know how to read financial reports, you will see that 90% of those losses are paper losses only. Thats all. It isn't money they company borrowed, or was given, and it certainly wasn't used to pay salaries - thats the next attack I am sure of.
They raised a total of $400K through convertible debt, but if you read on, you will see they have all that debt locked under leak out agreements - especially after what Kodiak did - so give her some credit. She also paid almost half of it back before they could convert into stock. Also, if you read any of the convertible notes as attachments to the 8K's in 2015, they had to reserve 3 times the conversion amount at 35% of the lowest closing bid price....and that kept getting adjusted every time the stock fell. So lets say you have a $50K note, and the stock price is .10 The conversion price is .065 per share and how many shares do you need just to make 50,000? Then multiply that by 3 times that amount. And ALL THAT STOCK is valued for purposes of the paper losses the company has to report and disclose. Thats why its ridiculously high. And it is riduculous.
What money? be specific
This is the problem when you have smart faders that don;t know how to read financial disclosures, so I will spell it out here.
You can lose $4.8M 2 ways - you can raise the money and spend it all - or you are FORCED to account for the stock you issue which gets booked to losses. Its that simple. The company only raised about $400K from convertible debt - it didn't even raise $500K in 2015. All the losses are attributable to the way the government requires the company to account for stock issuances. Thats all.
Explanation as to what exactly? Whats going on right now? Thats NOT what a 10K does. It audits the previous year. Its not a sales document, its a disclosure document of past events.
Did you think you were going to read about $5M in reeves when the CEO specifically said it was an organizational year? Did you think they were going to disclosure its new banker and funding in the 10K? The can't even if it happened already. That doesn't go into a 10K.
And what are we hearing in the 10K - FROM LAST YEAR, thats so bad? The way the company is forced to account for stock issuances making the panickers feel that they actually lost $4M? Thats the ONLY NEGATIVE thing, and its an accounting rule, thats the way I read it.
I also read how they are carefully controlling all conversions now, or is that negative too. The company only raised $400K in convertible debt last year, and already paid off almost half of it. Thats what I am reading.
Is it because last year was dedicated to restructuring and developing sales initiatives and not sales - exactly what the CEO said almost half the year last year? Did it not explain the whole purpose of the Oklahoma order, or did we miss that as well.
I read they are going straight to a $10M raise - what will anyone say when they get it? Oh, thats terrible, its bad? Don't be scared of numbers until you have a full digestion of the audited facts. Thats all.
You guys really need to learn how to read and understand what you are looking at. Did the company raise $4.8M? Really, where, show us. What you are seeing s probably over $4.2M in what accounts for stock issues and the values they are required to account for for reporting purposes. Not really losses - just the way the government makes them account for it.
LO, I'm still trying to get out of my talent agreement from "One Flew Over the OTC Coo-Coo's Nest" cast.
Its solely that MM's see that they can sell shares they don't have and make money because of the large spreads. NITE showing 100 shares, he will probably sell 700-1200 shares before he moves up, and when he moves up the bid doesn't come up.....more money on top of more money. Thats why the BID is the key. PPP, TAD and a few others know this too. There needs to be 4 bids stacked up, all 1-2 pennies away from each other, pushing that BS ASK for 100 shares out of the way, and then KEEP raising the bids to drive the ASK up, THATS trading.
When the spread is a few cents, and when the bid is hit all the bids disappear, that means feeding-frenzy time for MM's. Not enough bidders. Traders play into that all day long. Buy at the bid. Thats always good advice.
I cannot believe how someone with such a rich trading history like yourself cannot see the forrest from the tree's. Its OK. I assume your holding or acquiring more, so the fact is, you really do. But probably more by mistake based on your analysis. You haven't pointed to a SINGLE FACT that supports your position that its not inter-day shorting. Not a single fact. Just your gut feeling. Interesting.
So lets go through the analysis. I've already demonstrated via math, compliance and trading rules what I think is happening. Waiting for yours. Either way, it will stimulate discussion and thought. Go for it!
I disagree with PPP. This is mostly quick swing intra-day shorting, with maybe 15% actual buying and selling (What YD was alluding to earlier). If the MM's see buying throughout the day, or the bids tightening so much that the next bid hits the ask, they will scamper like fleas. Its happened a few times already. Plus, the days this stock moves, 15K shares plus traded. Not 5,000 or 6,000. Thats just stock fodder the MM's can play with and keep it where it is, maybe 10% higher. Thats it.
We all know you are a long and a big supporter. Just mixed signals some time that's all. No harm, no foul.
Cheeky has done a great job on his DD. Excellent in fact. And he deserves a lot of credit in helping inform traders about this company.
Your post caused people to question management and the insiders by pitting the insiders against the traders fool. Thas such typical OTC BS. That's exactly what that post did. And that shakes confidence. You say stupid shit like that during a sensitive time for the company and expect that negativity to be overlooked. It's the insiders who protected the day traders and the company. They all locked up and because they did ONlY the traders can make money. They can't. What don't you see. If you piss them off enough I am sure we will all lose here. What other OTC POFS company is there where the insiders suck it up for the traders and the betterment of the company? Only Traders can make money here because unlike any other OTC company insiders aren't selling. Or they would have already. There is so much more going on than we are aware of.
5:1 forward split?, what so you can get more stock and trade them now and make more money while the insiders are stuck building a real company? This stock would be .45 cents right now and there would be 5 times as many shares now In the float to overcome. Really such backwards day trader thinking.
I am just Pointing to something you may not have considered. That's all Cheeky.
Anytime any negative surfaces here there is panic selling and the MM's just compound it. The only people looking at this stock are us here. But hopefully not for long. Then what's said here will be much less relevant and have less of an impact overall on the stock.
And panic selling can be as little as 500 shares but that can drop the price by .40 cents. But some don't realize that.
Your post came out at 11:03. Those sells into the bid started at the exact same time. Could be a coincidence. If it is its a bad coincidence.
You "could" be right that its finally getting some legs and actually trading, but if you do the math, and now see the 2500 share BID almost .20 cents before the morning sells at the ASK, that tells a whole other story, a SHORT story. Do the math.
That may be true, and I hope it is. But Cheeky has a way of expression his frustrations - THE WRONG WAY. Wait until its starts trading 40K shares a day so there is less of a negative impact.
Nope, as soon as that posted, the bid was hit 4 times for 510 shares. FACT, its on L2
I guess thats you selling on Cheeky's post, interesting. Just lost another .20 cents a share. Thank you.
And see, you throw that BS out, and someone hits the bids down immediately after that post- and you think posts like that have no effect. I tried warning you about posts like that.
Correct
He was obviously being sarcastic.
Card_Lab is company that has BEEN in the card business for a number of years. I don't know them, but I know some of the engineering team members working on the biometrics from a past life. (A while ago). Good engineers. They already have millions of basic and mid-level security cards in the global markets and are a real company. They also seem to be well funded from several mid-tier funds financially supporting them, and have enough money for longevity and development.
Other than that, these biometric cards are still a mystery to me - more on the side of power management than anything else. Thats always been an impediment t having a biometrical secured card. Card issuers ave operational standards, and that means that card MUST WORK every single time a user puts it into the machine. This is why all of the technology used so far has been passive. Biometrics, in order to do it correctly, means the card has to be active (to process matching on the card) and that means power. IMHO, unless a card is always charged, and does not have the ability to fail because its not sufficiently charged, it will never get to market, as novel as it may be. As good as the biometric security sounds. That may be one reason why cards like these haven't been adopted yet. You don't think MC, VISA or AMEX have the engineering resources or relationships to do it themselves? Of course they do. Next question is, why not.
Yes, I will be there through the 8th. I plan on taking a look at all of the new card-based technologies to see who has what. Its the best way to determine who is furthest along. I do have one major concern though. IF, and thats a good "IF" SMME does have the technology - the problem is with the human capital, plain and simple. The approach of saturating press releases to try to draw attention IMO, was the complete OPPOSITE marketing tactic. But we will see in a few weeks.
Perfect example of what I have been pointing to all along. Perfect. Happy Easter all.
It wasn't meant as an attack HOKIE. It's meant to highlight all the impatient posts attacking the company for "not doing right by the shareholder", "another 3-6 months?", etc.......... I gather you ARE a sophisticated trader and the company is grateful to have you as a supporter I am sure. But to actually think 1) to go from 240K shares to 1,000,000 shares in the public float, 2) to go from 106 to over 300 shareholders, 3) to go from negative $4.5 shareholder equity to $4M shareholder equity, 4) to have a market cap of over $20M, 5) to meet or exceed a $4.00 minimum bid price for 30 consecutive days -----takes 2-3 months - you really have to be kidding me, right? Each one of those things takes WEEKS.
I spoke to Lorraine and she refuses to do the PUMP OTC routine, and quite frankly, thats the ONLY easy way you have a chance to get to those numbers within what amounts to unrealistic timelines, and I think thats one of YDaves concerns as well. You think the company wanted to wait for time to pass from the Kodiak debacle? You think the company hasn't spent the last several weeks picking an investment banker that not only could do a deal now, but also for one of the national exchanges as a follow-on in the future? Do you think the company wanted to wait to go present to buy-side guys? I see it as they are doing this the right way, which means the stable way. Thats all.
And the negative posts, even from the supporters, is very strong on shortsightedness - and thats just my observation based on the facts as we know them to be.
The key indicator I believe, with all other things being achievable, is the money. Period. If and when the company announces deal terms, raise, or whatever way they are getting funding, IMHO, its game over. Because then she can fully execute on everything she wants to do. All this other speculation, wondering and analysis is a complete waste of time without the money. If there is analysis, it should be done with regard to raising the necessary capital to move the company forward, rather than scant innuendo on who put what in their pocket - because those pockets will be bare, just like everyone else's, if the company doesn't get the money.
To me, thats the ONLY focus on analysis right now, because revenues, uplift and success are all tied into raising the money at real deal terms. Thats something I am willing to wait for to find out without casting doubt based on..........actually nothing.
Sorry if you took it the wrong way or out of context. Happy Easter
When day traders buy stock, they don't see the months and years worth of work that goes to build the company or the companies public market. It takes on average 6 years for a public company to uplift to a national exchange, provided they ever do. This company is 14 months old on the public markers. The CEO announced her plans just a few months ago, and the listing criteria was spelled out for you numerous times, and you are able to confirm that on both the NASDAQ and NYSE-MKT websites. You know all the numbers the company has to achieve which are the minimum requirements. I said this before and I will say this again - business does not move at the speed of day trading. On hindsight, she never should have disclosed her plans to you because you use that as a sword when it doesn't happen fast enough. She should have just did it, and catch all of you by surprise....and miss out.
My timeline guesses are just that, guesses. I don't place limitations on timelines because I have realistic expectations and I have a good understanding on how long a lot of the listing requirements will take to achieve.......the right way. Its simple math that gets compared to current events to see if they are moving in the right direction - NOTHING MORE.
Just because in my opinion, all these processes will take several more weeks, doesn't mean the company is NOT doing right by shareholders. The more you say that here, the more you drive away people looking at the company. Because you don't see news, you panic. Because the company hasn't announced its bankers yet, you panic. Because the company doesn't have 200 new shareholders already buying up the float, you panic. Because you don't see the stock moving up, you claim dilution is holding it down, and panic some more. Obviously, this is becoming a brutal lesson for some, on what it means to be long in a stock.
I am sorry to tell you - THAT is a day trader, NOT LONG, mentality. I don't consider myself a day trader because my average length of holding a particular stock is 2.5 years, so I consider myself a long, so I look at a completely different set of metrics than some of you.
I am quite sure already that when the 10K comes out it will be criticized simply based on that anything the company puts out in its disclosures is always criticized. And I really hate to tell you this, but the 10K ONLY AUDITS and REVIEWS what happened LAST YEAR. It probably won't tell you what the company is planning for 2016. That should come in following disclosures, releases, etc.....
And those Tweets? Are you fucking kidding me Hokie? The company is telling you everything STARTS this week, not ends this week with big trades where you make a killing.
A lot of you sound like spoiled brats and I get it, its because you have no real experience in watching a company develop into something much bigger, and there is an expectation of instant results. There are no "magic grits" that cook on RXSF's stove faster than any stove known to man. Its a process, and quite frankly, its complaints like that on this board that caused potential new shareholders confidence to be shaken, and you wonder why there isn't more volume. Even today, this board is the best place around to find out information about the company, but if your going to whine, your hurting yourselves, and others. Period.
PPP this wasn't in response to anything you said. I meant to respond to Hokies post, not yours.
Dave, in your way, your DD is EXCELLENT, but IMHO, just a little one-sided. I get you don;t understand where the 96K additional float shares came from, but it could only come from one place, because those have been in the market since the March 10th OTC Markets update. The S8 was approved only last week, so its not S8 shares. Any shares the company issues are restricted and are not counted in the public float. So.......the ONLY place they could have came from were from note conversions. Thats it. There is no other magic" stock that can miraculously appear and become float shares. You may have overlooked that possibility, and if so, I completely understand.
If your counting shares though, good luck, expect the float to grow to over a million shares soon. Thats one of the listing requirements. "If" the company sold more stock now (which could't be legally counted in the float), then I am sure the source of funds would be disclosed in its quarterly reports.
Let's see what pans out over the next 3 weeks.
I am sure you have a good basis for your own analysis in where you feel comfortable. Just a thought, there may be a few here that would want your entry point to be a lot lower because according to their estimates you will never get in. I hope you do though sooner than later.
I suggest you call the company's counsel and find out what the requirements for disclosure are. This is where you make mistakes. Sometimes smart people outsmart themselves. Especially if you don't know the rules for stock accounting. Not too many people do. It's fairly complicated. This is why I am sure the company's executives and major reporting shareholders have the company's SEC audit and legal counsel review and file them directly with the SEC. That would be a good business practice.
Drawing attention to stock issues without further DD can unintentionally raise questions that are easily answered if you take the next steps and understand the rules.
Evidently you are confusing math with required disclosures. The shares reflected on the OTC Markets should be confirmed by the audited 10k. We will see. But I would guess they are accurate as per the stated date. It seems that you are trying to raise an issue with regard to disclosures of securities and are implying that something is wrong. You also seem overly fixated on Mr. Basile. What gives Dave.? Are you legitimately confused?
It's much easier to try to play Monday morning quarterback but your incessant raising of purported issues is starting to make you look less knowledgable than more knowledgable. And we all know your raising of issues is at least, questionable.
As per the OTC Markets website, only an authorized person of the company can update stock info. Just a little deeper DD and you would have known this. Doesn't mean the float keeps changing. So your point is?
To me it's obvious. I looked back at the filings and based on some of the convertible notes that came due the last 3 months, that's what probably accounted for the increased public float. It's the only thing that makes any sense. So there would be no "funds" from the sales except to retire debt. There are no 144's or Form 4's do that has to account for the increase. And you would have to include those Kidiak shares which I believe we're approx 52k shares.
The float is as reported by the company at the OTC Markets. If you are aware of any other event that may have increased the shares it would be appreciated if you shared that with us. I can't find it. Perhaps you know. Thnx.
I think when expectations don't meet certain time schedules it's really all about day trading and not long holders. There needs to be an understanding what the company is doing, where it's going, and most importantly, how it's getting there. Looks to me that they are not going after day traders. That's a pump and dump scenario. Looks to me that they are going to the street organically and that takes a VERY LONG TIME to develop. I am going to take the position that it will take FOREVER instead of its happening Monday. We have no idea how hard it is to attract quality long term investors who can buy $20k at a clip. We just have to hope that the plans in place get us all there. It's frustrating but the company already said it starts this week.
Let's hope but it makes no sense, and we will all just see the same results if no one else is looking at the company. It's going to take time to build a new base I suppose. Hopefully sooner than later.