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Financial reasons why is GOSY undervalued:
1. Compliance with Federal Accounting Standards Board's (FASB, http://www.fasb.org/ ) Generally Accepted Accounting Principles (GAAP) distorts the true economic condition and performance of the company.
This is due to the requirement to expense 100% of all R&D in the year incurred. Hence a complete writeoff of all R&D expenditures, regardless of present and/or future value to ZERO. This required compliance with GAAP forces the Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
2. Federal and state tax laws also distort the true economic condition and performance of GOSY.
This is due to the requirement to prepare financials in accordance with FASB 's GAAP for tax filings. This required compliance with GAAP forces GOSY as a Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
3. European Unon (EU) accounting standards, if applied to GOSY's financials, would portray the true economic condition and performance of the company much more realistically.
This is due to the requirement to expense only 50% (not 100%) of all R&D in the year incurred. Hence since not a 100% writeoff, 50% is carried as assets on the balance sheet. This fairly reflects the net worth of a Development Stage company from the EU perspective. The EU requires only a 50% writeoff of all R&D expenditures. This simple accounting change would dramatically flip GOSY's net worth and stockholder equity deep into positive territory.
This required compliance with GAAP forces GOSY --as a Development Stage company-- to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
4. Ignoring discounted cash flow (DCF) analyses of GOSY's financial pro formas lowers the net present value (NPV) of future net profits of GOSY regardless of hurdle rate (minimum ROI) determined as sufficient for the level of risk.
Ignoring increased stockholder dividends due to significant tax loss carry forwards (which reduces taxes due for several years and hence increases the aftertax income available for distribution as stock dividends to stockholders) distorts by lowering the net present value (NPV) of future dividend payments to GOSY stockholders regardless of hurdle rate used.
The long and short of it all?
GOSY's $8,000,000 in expenditures the last 15 years does not show up on the Balance Sheet due to compliance with GAAP.
NOT because the IP has little or no value.
That reality definitely undervalues GOSY's IP!
All MBA's are familiar with algebraic analyses such as Discounted Cash Flow (DCF). They will understand, like Spencer does, that the present market cap for GOSY has virtually no connection to the NPV of their tech. There is NO simple arithmetic in grad b school.
Good thing for GOSY's stockholders that Spencer has that skill set and experience.
Wonder how many C level MBA's Pride has?
mo-
Mech
Spencer has 20+ years in sales and marketing.
NONE of Spencer's stock will be sold...
...by Neil Wallace, his parents, the "sheriff," or anyone else.
The IRREFUTABLE reasons why it CANNOT happen are:
1. The proposed sale VIOLATES Federal securities laws, specifically Rule 144 which governs the sale of all restricted stock, REGARDLESS of WHO is doing the selling or the circumstances.
Further, Rule 144 REQUIRES that ONLY FINRA/SEC brokers execute ANY and ALL sales.
So the sheriff does not have to comply with Rule 144?
SURE, they do!
BECAUSE:
2. Federal law ALWAYS trumps state law.
Whenever state law conflicts with Federal law, FEDERAL ALWAYS prevails and precludes enforcement of any and all state laws that conflict with Federal laws.
3. GOSY's DE attorney has demonstrated competence MANY times.
Wallace has NEVER collected ANYTHING in the 5 years of his FAILED attempts to collect monies from GOSY and/or the Spencers NOT legitimately earned by him or allegedly due his parents.
Therefore, NONE of Spencer's stock CAN be sold by Neil Wallace, his parents, the "sheriff," or anyone else.
In conclusion, the Spencers will NOT be losing majority control of GOSY since their 51% ownership is in preferred GOSY shares is NOT at risk in ANY manner, or have ANY of their common stock holdings sold, either.
Wallace has chosen to not make public the so called opinion letter he hee haws about being the "end all" solution supporting his position. Of course he won't since his position is INDEFENSIBLE.
facts remain facts-
Mech
This.will.be.a.big.help.in.negotiating.with.Pride.Mobility:
Spencer has an excellent, professional business education:
nursing homes are a two edged sword-
on one hand they are very expensive.
"slums" are $3.5-4K per month
national average is $4.5K per month
the economics are so bad that 50% of all nursing homes in FL are in bankruptcy-
now for the sharper edge of the sword-
there is a huge emotional trauma to the beloved parents that sends them into depression and they die in 1-2 years!
whereas, staying in their own home of 20-30+ years, they may live another 5-10 years!
so what does the family, adult children, want?
to keep their beloved parent as safe and comfortable such that their twilight years can be as good as they can be-
hence the extraordinary means of keeping grandma at home as long as possible.
I do not see the carebot eliminating nursing homes, but putting off that loss of independence as long as is possible-
those that have had direct eldercare responsibility understand the foregoing very, very well!
so tech is great from GOSY to put "family first"
those that believe "toybots" can do the foregoing, may find it insightful to review their calculus, physics, and programming languages they studied while in engineering school. otherwise, it is obvious that....
chortle
mo-
Mech
GOSY's tech gives it "first mover" opp!
Here's a list of the tech they have invented over the last 15 years with only $1.7M in cash:
Financial reasons why is GOSY undervalued:
1. Compliance with Federal Accounting Standards Board's (FASB, http://www.fasb.org/ ) Generally Accepted Accounting Principles (GAAP) distorts the true economic condition and performance of the company.
This is due to the requirement to expense 100% of all R&D in the year incurred. Hence a complete writeoff of all R&D expenditures, regardless of present and/or future value to ZERO. This required compliance with GAAP forces the Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
2. Federal and state tax laws also distort the true economic condition and performance of GOSY.
This is due to the requirement to prepare financials in accordance with FASB 's GAAP for tax filings. This required compliance with GAAP forces GOSY as a Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
3. European Unon (EU) accounting standards, if applied to GOSY's financials, would portray the true economic condition and performance of the company much more realistically.
This is due to the requirement to expense only 50% (not 100%) of all R&D in the year incurred. Hence since not a 100% writeoff, 50% is carried as assets on the balance sheet. This fairly reflects the net worth of a Development Stage company from the EU perspective. The EU requires only a 50% writeoff of all R&D expenditures. This simple accounting change would dramatically flip GOSY's net worth and stockholder equity deep into positive territory.
This required compliance with GAAP forces GOSY --as a Development Stage company-- to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
4. Ignoring discounted cash flow (DCF) analyses of GOSY's financial pro formas lowers the net present value (NPV) of future net profits of GOSY regardless of hurdle rate (minimum ROI) determined as sufficient for the level of risk.
Ignoring increased stockholder dividends due to significant tax loss carry forwards (which reduces taxes due for several years and hence increases the aftertax income available for distribution as stock dividends to stockholders) distorts by lowering the net present value (NPV) of future dividend payments to GOSY stockholders regardless of hurdle rate used.
The long and short of it all?
GOSY's $8,000,000 in expenditures the last 15 years does not show up on the Balance Sheet due to compliance with GAAP.
NOT because the IP has little or no value.
That reality definitely undervalues GOSY's IP!
All MBA's are familiar with algebraic analyses such as Discounted Cash Flow (DCF). They will understand, like Spencer does, that the present market cap for GOSY has virtually no connection to the NPV of their tech. There is NO simple arithmetic in grad b school.
Good thing for GOSY's stockholders that Spencer has that skill set and experience.
Wonder how many C level MBA's Pride has?
mo-
Mech
Guess.you.missed.Over 120 public.videos of.CareBots.in.action!
4 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2011
4 eldercare alpha trial videos:
(Some with elderly family members, now deceased. The family members were never in assisted care or nursing homes, but allowed to stay at home with dignity and privacy. Family is always first with GeckoSystems. Most folks consider "family first," too.)
http://www.geckosystems.com/timeline/?year=2010
18 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2009
http://www.geckosystems.com/timeline/?year=2007
12 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2006
5 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2005
16 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2004
60 videos here in public venues:
http://www.geckosystems.com/timeline/?year=2003
http://www.geckosystems.com/timeline/2002/images/DCP00216.jpg
http://www.geckosystems.com/timeline/2001/images/DCP00206.jpg
http://www.geckosystems.com/timeline/2000/images/Pow%20Wow%20photo%2002.JPG
http://www.geckosystems.com/timeline/1998/images/imageFPK.JPG
Over 100 videos in public venues viewed by non GOSY affiliates, authenticating the reality of GOSY's world class "mobile robot solutions for safety, security, and service."
No joysticks, no "man behind the curtain," and no "staged" demonstrations!
Facts be facts-
Is this ZMP evaluating GOSY's BaseBot?
Is that due to your first hand observation of a CareBot demo?
Or are you just guessing?
BTW, according to the wikipedia definition of "meander," you may want to reconsider your characterization that the CareBot "meanders."
If you really believe that the CareBot ambulates aimlessly, may I respectfully direct your attention to this URL:
http://www.geckosystems.com
Over 120 videos indicate NO meandering per the wikipedia definition.
mo-
Mech
NONE of Spencer's stock will be sold...
...by Neil Wallace, his parents, the "sheriff," or anyone else.
The IRREFUTABLE reasons why it CANNOT happen are:
1. The proposed sale VIOLATES Federal securities laws, specifically Rule 144 which governs the sale of all restricted stock, REGARDLESS of WHO is doing the selling or the circumstances.
Further, Rule 144 REQUIRES that ONLY FINRA/SEC brokers execute ANY and ALL sales.
So the sheriff does not have to comply with Rule 144?
SURE, they do!
BECAUSE:
2. Federal law ALWAYS trumps state law.
Whenever state law conflicts with Federal law, FEDERAL ALWAYS prevails and precludes enforcement of any and all state laws that conflict with Federal laws.
3. GOSY's DE attorney has demonstrated competence MANY times.
Wallace has NEVER collected ANYTHING in the 5 years of his FAILED attempts to collect monies from GOSY and/or the Spencers NOT legitimately earned by him or allegedly due his parents.
Therefore, NONE of Spencer's stock CAN be sold by Neil Wallace, his parents, the "sheriff," or anyone else.
In conclusion, the Spencers will NOT be losing majority control of GOSY since their 51% ownership is in preferred GOSY shares is NOT at risk in ANY manner, or have ANY of their common stock holdings sold, either.
Wallace has chosen to not make public the so called opinion letter he hee haws about being the "end all" solution supporting his position. Of course he won't since his position is INDEFENSIBLE.
facts remain facts-
Mech
Looks like MacLeod has abandoned Wallace!
Here's why:
Five times in the last 5 years MacLeod has manipulated Neil Tyler (Tyrone?) Wallace into attempting de facto takeovers of GOSY.
Why is that?
MacLeod's health is very poor. He is morbidly obese. He is only 5'4" and yet weighs 280-320 pounds. His blood pressure is unbelieveably high. Why would MacLeod risk stroking out in his continued attacks on GOSY just to bring the pps down?
"Suppose" MacLeod has allied with the dark side, aka Mafiaso international hedge funds and told them of his conspiracy with Wallace to drive the GOSY pps down to .0001? If MacLeod has convinced these international Mafiaso's to NAKED SHORT GOSY, what happens to this morbidly obese, gasket-popping high blood pressure individual?
Is there anyplace in the world MacLeod can hide from this kind of international evil that he has conned into MASSIVELY SHORTING GOSY?
Probably not...
So will MacLeod lie and cheat on Wallace to protect his own life?
Sure!
Wallace is a fool here for believing that MacLeod views Wallace's involvement with GOSY as anything more than being a sacrificial pawn.
Wallace stands to gain only a few tens of thousands of dollars in his illicit stalking of GOSY. MacLeod is working to save his own life from the forces of evil that he has enlisted with the promise of large monies to be made on the MASSIVE NAKED SHORTING of GOSY.
Wallace is MacLeod's stooge, tool, shill, sock puppet and is so desperate for MacLeod's approval that he does not realize that MaeLeod has already screwed him when he conned Wallace into forging his signature on DE court docs, and THEN not personally appearing while leaving Wallace holding the bag.
So while Wallace has proclaimed he is judgment proof, he is in complete denial that MacLeod is far, far more concerned with saving his own life from the international Mafiaso hedge funds that he has conned into MASSIVELY NAKED SHORTING of GOSY stock.
Poor Wallace. MacLeod spins Wallace up like a willing stooge and then deflects Wallace's concerns about being left holding the bag by insisting that crashing GOSY will solve all Wallace's issues. MacLeod seems to have no problem with Wallace "taking the fall" and going to prison for the rest of his life for Criminal RICO.
Look at how stupid and utterly self-defeating it is for Wallace to condemn GOSY and work to keep GOSY's stock price down.
All that does is make it harder for GOSY to settle with Wallace due to lack of funds.
How is that in Wallace's best interests?
It is NOT.
It is in MacLeod's best interest since he is morbidly obese, has gasket popping high blood pressure, and his Mafiaso buddies able to find him ANYWHERE in the world?
So of course MacLeod lies to Wallace CONSTANTLY. Desperate for approval and to be "one of the guys," Wallace believes MacLeod. Wallace says that is all he has ever wanted...
So when will MacLeod POP a gasket?
When GOSY announces revenues and the pps sees a sustained run upward.
Of course they argue that will never happen. When is does, being real, REAL FAT with gasket popping blood pressure will be the LEAST of MacLeod's worries.......
Desperation is an understatement for MacLeod's situation. Didn't MacLeod abandon a nice home in FL to foreclosure because he had to get out of the US NOW?
What drives MacLeod nuts here? Since GOSY has real tech, huge markets and competent management, despite his mastery as a chess player, he has been stymied FOUR times in driving GOSY's pps to the basement.
Is this gasket popping time for MacLeod? I would sure be looking for a way out of his mess with the Mafiaso...
Maybe if MacLeod can con Wallace just a little bit more....
What will come of Wallace when MacLeod poof, disappears?
DISASTER.
Is Wallace the biggest fool here for being a tool, stooge, pawn, shill for MacLeod?
Probably....
Is this why George Iveagh MacLeod celebrates his manipulation of Wallace in getting Wallace to falsely accuse Spencer in VA?
It is intuitively obvious to this casual observer that Wallace and MacLeod have conspired to damage GOSY for some years now.
This URL is very insightful:
http://www.geckosystems.com/W_W_W
Yes, it got hot in the GOSY kitchen and MacLeod bailed on Wallace since Wallace is MacLeod's tool, shill, sycophant, pawn, BFF(?), stooge and/or sock puppet. Wallace denies that his BFF has abandoned him and screams at the night:
"It ain't so 'cause I say it ain't so!"
Welcome to the Weird World of Wallace!
Lots of opinion here, but....
Facts be facts-
Mech
The Spencer's have known MacLeod is notorious for awhile-
Yes, Culdesac, your DD is excellent, too!
I found this post by Plankton insightful:
Your DD is excellent, Caravan! Who is George Iveagh MacLeod?
Spencer's tenure in industrial robot design is impressive:
Who is George Iveagh MacLeod?
NONE of Spencer's stock will be sold...
...by Neil Wallace, his parents, the "sheriff," or anyone else.
The IRREFUTABLE reasons why it CANNOT happen are:
1. The proposed sale VIOLATES Federal securities laws, specifically Rule 144 which governs the sale of all restricted stock, REGARDLESS of WHO is doing the selling or the circumstances.
Further, Rule 144 REQUIRES that ONLY FINRA/SEC brokers execute ANY and ALL sales.
So the sheriff does not have to comply with Rule 144?
SURE, they do!
BECAUSE:
2. Federal law ALWAYS trumps state law.
Whenever state law conflicts with Federal law, FEDERAL ALWAYS prevails and precludes enforcement of any and all state laws that conflict with Federal laws.
3. GOSY's DE attorney has demonstrated competence MANY times.
Wallace has NEVER collected ANYTHING in the 5 years of his FAILED attempts to collect monies from GOSY and/or the Spencers NOT legitimately earned by him or allegedly due his parents.
Therefore, NONE of Spencer's stock CAN be sold by Neil Wallace, his parents, the "sheriff," or anyone else.
In conclusion, the Spencers will NOT be losing majority control of GOSY since their 51% ownership is in preferred GOSY shares is NOT at risk in ANY manner, or have ANY of their common stock holdings sold, either.
Wallace has chosen to not make public the so called opinion letter he hee haws about being the "end all" solution supporting his position. Of course he won't since his position is INDEFENSIBLE.
facts remain facts-
Mech
Financial reasons why is GOSY undervalued:
1. Compliance with Federal Accounting Standards Board's (FASB, http://www.fasb.org/ ) Generally Accepted Accounting Principles (GAAP) distorts the true economic condition and performance of the company.
This is due to the requirement to expense 100% of all R&D in the year incurred. Hence a complete writeoff of all R&D expenditures, regardless of present and/or future value to ZERO. This required compliance with GAAP forces the Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
2. Federal and state tax laws also distort the true economic condition and performance of GOSY.
This is due to the requirement to prepare financials in accordance with FASB 's GAAP for tax filings. This required compliance with GAAP forces GOSY as a Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
3. European Unon (EU) accounting standards, if applied to GOSY's financials, would portray the true economic condition and performance of the company much more realistically.
This is due to the requirement to expense only 50% (not 100%) of all R&D in the year incurred. Hence since not a 100% writeoff, 50% is carried as assets on the balance sheet. This fairly reflects the net worth of a Development Stage company from the EU perspective. The EU requires only a 50% writeoff of all R&D expenditures. This simple accounting change would dramatically flip GOSY's net worth and stockholder equity deep into positive territory.
This required compliance with GAAP forces GOSY --as a Development Stage company-- to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
4. Ignoring discounted cash flow (DCF) analyses of GOSY's financial pro formas lowers the net present value (NPV) of future net profits of GOSY regardless of hurdle rate (minimum ROI) determined as sufficient for the level of risk.
Ignoring increased stockholder dividends due to significant tax loss carry forwards (which reduces taxes due for several years and hence increases the aftertax income available for distribution as stock dividends to stockholders) distorts by lowering the net present value (NPV) of future dividend payments to GOSY stockholders regardless of hurdle rate used.
The long and short of it all?
GOSY's $8,000,000 in expenditures the last 15 years does not show up on the Balance Sheet due to compliance with GAAP.
NOT because the IP has little or no value.
That reality definitely undervalues GOSY's IP!
mo-
Mech
Spencer's PROFITABLE management of four consumer electronics stores is impressive:
So this low level DE judge can TRUMP SEC regs?
I don't think sooooo.......
Didn't we have a Civil War a hundred years or so ago that determined that Federal laws ALWAYS TRUMP state laws?
Might be a good time for Wallace to read Rule 144 regs and consider that he and his daddy were screwed by the "former" SEC attorney due to his opinion letter being INCOMPLETE since NO mention of Rule 144.
Of course the ignorant of securities law low level judge does not realize that Wallace is circumventing due legal process, YET!
Isn't Rule 144 there to PREVENT folks like Wallace from damaging all the other stockholders in GOSY, etc.?
Aren't Wallace's plans to destroy GOSY stockholder value by driving the pps down to the cellar? For over 1300 stockholders?
And the SEC does NOT care?
Or have regs already in place?
i.e. Rule 144
Doesn't Wallace brag all the time about screwing Spencer and the OTHER 1300 stockholders while he is at it?
And the SEC's Rule 144 doesn't cover that ILLEGAL maneuver?
chortle....
Still askin'
Mech
But has Wallace actually read Rule 144?
Will he be able to endure the PUBLIC HUMILIATION and infuriating his daddy?
Did Wallace get a TOO CHEEEP opinion letter that is FLAWED since NO reference to Rule 144?
Still askin'
Wheelchair companies? There are several, I think.
Mech
Why is Pride Mobility being mentioned here so much today?
is GOSY in discussions with them?
maybe not-
but SafePath is amazing!
mo-
Mech
nursing homes are a two edged sword-
on one hand they are very expensive.
"slums" are $3.5-4K per month
national average is $4.5K per month
the economics are so bad that 50% of all nursing homes in FL are in bankruptcy-
now for the sharper edge of the sword-
there is a huge emotional trauma to the beloved parents that sends them into depression and they die in 1-2 years!
whereas, staying in their own home of 20-30+ years, they may live another 5-10 years!
so what does the family, adult children, want?
to keep their beloved parent as safe and comfortable such that their twilight years can be as good as they can be-
hence the extraordinary means of keeping grandma at home as long as possible.
I do not see the carebot eliminating nursing homes, but putting off that loss of independence as long as is possible-
those that have had direct eldercare responsibility understand the foregoing very, very well!
so tech is great from GOSY to put "family first"
mo-
Mech
Like I said, it is important for one to do their own DD.
Guess Wallace is unfazed by the near certainty of his PUBLIC HUMILIATION and infuriating daddy...
BTW, just because a low level judge is ignorant, does not mean they are stupid, retarded, or in any way mentally or emotionally challenged. IMO, others may disagree...
So why was the SEC created if NOT to protect stockholders from ILLEGAL stock manipulation such as Wallace keeps bragging about?
Isn't that self defeating of Wallace, to brag about VIOLATING SEC regs?
Why would any sane person brag publicly about breaking any law, much less Federal?
Is that why the FBI is now assembling a file on Wallace et al?
This ILLEGAL manipulation he keeps bragging about?
mo-
Mech
Yes, Plankton, you are right about Wallace-
He got a cheap attorney opinion that was incomplete and flawed.
Since Wallace hasn't bothered to read Rule 144 himself and at least try to understand it, he just hoots about Spencer not having provided the DE court an equivalent "SEC" FORMER employee cheepie letter that says NOTHING about Rule 144, like the one he secured for his parents.
Not only will Wallace be PUBLICLY HUMILIATED, I bet his daddy will be FURIOUS with "son" Wallace.
Yes, Sadistic bullies like these two would be "pounding rocks in the hot sun" in Leavenworth.
Wasn't the SEC created to protect ALL stockholders in ALL publicly traded companies from manipulation like Wallace "alleges" he can do with GOSY?
Why would anyone CONSTANTLY brag about their WONDERFUL plans to VIOLATE SEC regs?
Yes, when these types go overseas, they generally don't come back...
mo-
Mech
Rule 144 ALWAYS applies.
Wallace is getting an VERY expensive and PUBLIC education here.
One may find some personal DD insightful.
I did.
Ask an SEC attorney that understands Rule 144, instead of avoiding its mention or reference in any manner whatsoever.
I am right.
Mech
Easy to provide the algebra requested here:
Here's a list of the tech GOSY has invented over the last 15 years with only $1.7M in cash. $1,700,000 (not $8M) less the $900,000 in debt, equals $800,000 cash from investors. Now $800,000 divided by 15 years is ONLY $53,350 per year CASH that GOSY used to develop ALL of the following IP:
Financial reasons why is GOSY undervalued:
1. Compliance with Federal Accounting Standards Board's (FASB, http://www.fasb.org/ ) Generally Accepted Accounting Principles (GAAP) distorts the true economic condition and performance of the company.
This is due to the requirement to expense 100% of all R&D in the year incurred. Hence a complete writeoff of all R&D expenditures, regardless of present and/or future value to ZERO. This required compliance with GAAP forces the Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
2. Federal and state tax laws also distort the true economic condition and performance of GOSY.
This is due to the requirement to prepare financials in accordance with FASB 's GAAP for tax filings. This required compliance with GAAP forces GOSY as a Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
3. European Unon (EU) accounting standards, if applied to GOSY's financials, would portray the true economic condition and performance of the company much more realistically.
This is due to the requirement to expense only 50% (not 100%) of all R&D in the year incurred. Hence since not a 100% writeoff, 50% is carried as assets on the balance sheet. This fairly reflects the net worth of a Development Stage company from the EU perspective. The EU requires only a 50% writeoff of all R&D expenditures. This simple accounting change would dramatically flip GOSY's net worth and stockholder equity deep into positive territory.
This required compliance with GAAP forces GOSY --as a Development Stage company-- to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.
4. Ignoring discounted cash flow (DCF) analyses of GOSY's financial pro formas lowers the net present value (NPV) of future net profits of GOSY regardless of hurdle rate (minimum ROI) determined as sufficient for the level of risk.
Ignoring increased stockholder dividends due to significant tax loss carry forwards (which reduces taxes due for several years and hence increases the aftertax income available for distribution as stock dividends to stockholders) distorts by lowering the net present value (NPV) of future dividend payments to GOSY stockholders regardless of hurdle rate used.
The long and short of it all?
GOSY's $8,000,000 in expenditures the last 15 years does not show up on the Balance Sheet as capitalized R&D due to compliance with GAAP.
NOT because GOSY's IP has little or no value.
That reality definitely undervalues GOSY's IP!
All MBA's are familiar with algebraic analyses such as Discounted Cash Flow (DCF). They will understand, like Spencer does, that the present market cap for GOSY has virtually no connection to the NPV of their tech. There is NO simple arithmetic in grad b school.
Good thing for GOSY's stockholders that Spencer has that skill set and experience.
Wonder how many C level MBA's Pride has?
mo-
Mech
This will be a big help in negotiating with Pride et al:
Spencer has an excellent, professional business education:
That analysis starts out with a false premise!
It is a false premise based on nothing but speculation that: "if the preferred were converted to common..."
Why?
The Spencers got their preferred shares by converting several hundred million shares from common to preferred. Therefore any assUmption that those preferred shares would be converted back to common is completely false!
And all the math and "claims" that follow are mangled algebra and "do not follow" correctly at all.
And, the URL's missing are the ones (no surprise) where the Spencers converted their common to preferred.
Here, this is not 3rd grade simple arithmetic, but 8th grade algebra.
I do know the difference, unless one is using ancient sanskrit analysis --which I do not understand why anyone would insist on using that antiquated numerical technique-- to do stock issuance analysis.
I have no clue why anyone would insist on using that completely discarded approach as being absolutely without any scientific basis whatsoever.
What's your guess?
mo-
Mech
You 100% agree that Spencer...
...can do ALGEBRA!!
EXCELLENT!
BTW, since that severe personality disorder has its roots in early childhood, how did Spencer get vetted into the CIA?
Or for that matter, how did Spencer get into the Army?
All recruits spend their first week taking psych, IQ, and aptitude tests.
Evidently Spencer did pretty good to get into the schools that he did.
Are you just making it up that Spencer is a sociopath since he understands ALGEBRA?
ALGEBRA can be very difficult at times.
Don't you agree?
mo-
Mech
Spencer has an excellent, professional business education: