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I have been wondering if these PP holders did any in depth DD of the company? Seems if you were buying 10% of the paper you would have a good DD and even a seat at the table?
If so with the ole rapids being a non starter with the selling their view of the future is ??
we all know the stock has been suffering lately but that suffering will soon stop I think.
see some Form T 10k trades at the ask at the end of the day or after hours!!! SCRC! Tut
I think a a few more days like today, in terms of volume would do so.
I highly doubt people who invested their money to help SCRC and themselves of course, in exchange for .05 shares, waited at least six months, did so to make up a .04 profit. Sounds like an absolute ridiculous scenario to me. It would make a lot more sense to invest money in exchange for .05 shares, be willing to wait a heck of a lot longer than six months and expect and wait to see it trade in the 40s or 50s, not sell at .09.
the current selling could very well be from the remaining toxic notes from months ago that are just now finally being cleaned up.
how many more shares, in your estimation, need to be cleaned up still?
If that is the case, there are buyers snapping up the shares. That is definitely a POSITIVE.
I believe.that's 2.1% down sir. Nothing to read into.that small dip with the amount of shares traded.
Nice volume today. Any ideas as to why?
So was the PR from scrc this morning their attempt to say they are CFP but due to accounting methods they couldn't show that?
However, there is one thing about your writing that rankles me: Your use of the ubiquitous but incorrect "Like I said..." to reference something you said before.
Please use, "As I said..." Like I said pertains to the manner in which you said something.
People read post 19153 it says it all.
Read numbers 9 and 10.
Those are real numbers, WRITTEN IN STONE
Assuming that all the Q2 run rates hold steady over the course of a rolling 12-month period, here is what my rough back-o-the-napkin calcs forecast for an annual P&L:
58.0M......Revenues
( 7.5M)....COGS (based on 13% per Q2 disclosure)
(26.1M)....Selling Costs (Main Ave only @ 45% per Q2 disclosure)
( 2.4M)....Selling Costs (Specialty Billing @ $600k/qtr per Q2 disclosure)
( 2.1M)....G&A Exp (@ $522k/qtr per Q2 run rate)
( 2.9M)....Share-Based G&A Exp (@ $735k/qtr per Q2 run rate)
( 0.3M)....Other Exp (@ $268k/qtr per Q2 run rate)
-------
16.7M......Net Profit/Earnings
.123 (EPS based upon current 135.9M O/S count)
.097 (EPS based upon 172M O/S count -- this is to factor in the inevitable increase in the O/S, with the only assumption being that it will increase at the same 9M shares/qtr over the next 12 months as it increased during Q2'14).
To be clear, the people involved in the private placement own stock as high as .70 cents
and doubt any one is a seller anytime soon.
The 2.7m that was done in June will go into Q3
The 24m at .0525 raise of 1.2m. I believe that this was a great move and saved the company because they used this $$$$ for compounding as THE CEO CLEARLY STATED IN HIS RADIO INTERVIEW. IF YOU DON'T BELIEVE ME LISTEN FOR YOURSELF. A as WE HAD NOTHING IN THAT PERIOD AND WITHOUT THE CORE INVESTORS COMING THROUGH NO COMPOUNDING THAT’S A FACT.
Also, it is my believe the QUALITY of people that GAVE the company their $$$$$$ when from January to Feb risked losing all
If Bob wrote any more notes I would have sold my entire position as well as my associates THAT IS REALITY.
I also believe the $$$$ of the .05 cent stock is in strong hands of people who wanted to help to company as well as themselves. (Nothing wrong with that) I am of the strong belief the majority of the private placement investors had costs well above .05 a share and CERTAINLY DO NOT HAVE 2X OR 3X OR 4X WHAT HAS BEEN ADVERTISED.
Figures don't lie.
NOTHING BUT CLEAR SKIES AHEAD.
Once wall street sees what is going on at SCRC and starts to buy we will be trading MANY more shares than we are trading now.
The pipe shares will be eaten up like a HOT KNIFE GOING THROUGH BUTTER.
No one is screaming to the moon
Your analysis of the q2 was very interesting. I was not able to get the complete report and thus can not properly evaluate your assumptions. One point was surprising and that is the accrual of sales costs for material that was not manufactured or shipped. If this accrual of 820k was not made, SCRC would have been profitable instead of the 0.5cents loss.
Very good analysis. Here is something you might have missed:
24% one year Term loan
On May 19, 2014, Main Ave Pharmacy borrowed $250,000 from a stockholder of the Company in order to provide funding for inventory and payment of commission expenses. This loan bears interest at the rate of 24% per annum, interest payments are due monthly beginning July 1, 2014, and the principal payment is due at the maturity date of May 18, 2015, along with any outstanding interest payments. Additionally, the Company shall pay to the lender a royalty of $2 for each prescription processed by Main Avenue Pharmacy upon the commencement of the $8.00 royalty under the investment contract dated January 17, 2014, with the Implex Corporation. The Company recorded a royalty expense to the statement of operation in the second quarter of 2014 in the amount of $23,940. The balance as of June 30, 2014 is $190,270.
24% one year Term loan – Related party
On May 19, 2014, Main Ave Pharmacy borrowed $75,000 from the wife of the Company’s Chief Executive Officer in order to provide funding for inventory and payment of commission expenses. This loan bears interest at the rate of 24% per annum, interest payments are due monthly beginning July 1, 2014, and the principal payment is due at the maturity date of May 18, 2015 along with any outstanding interest payments. Additionally, the Company shall pay to the lender a royalty of $2 for each prescription processed by Main Avenue Pharmacy upon the commencement of the $8.00 royalty under the investment contract dated January 17, 2014, with the Implex Corporation. The Company recorded a royalty expense to the statement of operation in the second quarter of 2014 in the amount of $4,788. The balance as of June 30, 2014 is $75,000.
So much nonsense everywhere in the marketplace tonight about JUN's $2.7M in "revenues" not being included because payment is on 30-day terms.
Like I've been saying, those holding PIPE shares as disclosed in SCRC's filings have no clue how to read an SEC filing because with .05 shares, they have no need to worry about fundamentals. And apparently they are not only illiterate but can't apply common sense or perform elementary school level addition either.
(1)
Remember that Bob changed the language of his PR's from "revenues" to "approved orders". THIS IS IMPORTANT.
(2)
SCRC has been disclosing for 2 quarters now that they recognize revenues when the prescription SHIPS. It is a violation of US GAAP for an accrual-based company to record revenues on a cash-basis (i.e. when they receive the cash 30 days later). There is ZERO relationship between revenues and the DRO (days receivables are outstanding).
(3)
If it was so simple as saying that "Oh, JUN's numbers are excluded", then wouldn't Q2 revenues be $2.6M instead of the $3.5M that was reported in the Q??? Remember, APR was $958k and MAY was $1.6M. How does simply excluding JUN's $2.7M get you to the $3.5M that SCRC reported??? And don't say, "Well, they added in MAR revenues since they are on that 30-day lag" because that doesn't fly either. SCRC already reported over $600k in Main Ave revenues in Q1, and with PR'd monthly numbers of $147k for FEB and $495k for MAR, you would essentially be accusing SCRC of some big-time double-counting of revenues. In fact, they would need to triple-count some of Q1's revenues in order to make up for the $900k difference between the $3.5M that was reported for Q2 and this ridiculous $2.6M number that is based upon the brain-numbing "They excluded JUN numbers because it takes 30 days to get paid" theory.
(4)
It is apparent that the shift in language from "revenues" to "approved orders" means that there is now a material shift in timing. Main Ave is prepared to ship the orders as soon as they receive payment approval from the insurance companies. However, there is apparently a backlog in production that is causing Main Ave to not be able to ship approved orders out in as timely a manner as they would like to -- thereby reducing the amount of "approved orders" they can actually record as revenues.
If you add up what Bob had PR'd as "approved orders" during Q2, you will see $5.265M ($960k, $1.6M, and $2.7M for APR/MAY/JUN, respectively). But yet only $3.5M was recognized and reported as revenues in the Q. This is a difference (a "perceived" shortfall, if you will) of $1.765M (almost 33% of the $5.265M that had been expected based upon the "approved orders" that had been PR'd).
I walked everyone thru how to use this info to calculate the backlog in my prior post, so I will skip it here. But needless to say, the backlog comes out to a ballpark of 20 days. So it is this 20-day backlog that is causing approx the final 20-days worth of "approved orders" in JUN to not be eligible for recognition as revenues as part of Q2.
And if you consider that 20 days is approx 2/3rds of a month, the fact that $1.765M is pretty much 2/3rds of the $2.7M of "approved orders" for JUN, this fits from this angle as well.
Another corroborating piece of evidence to support this theory is the fact that we see $820k in Accrued Commission Exp on the balance sheet. This just so happens to represent approx 46% of this $1.765M, which is right smack dab in the ballpark of the 30-50% commission exp range that Main Ave disclosed. So it makes sense that commissions would be earned and expensed but simply accrued for and NOT physically paid out until the revenues related to the orders are booked when the orders are actually shipped 20 days later.
If anyone identifies any flaws in my logic, I would welcome hearing it...
For those who are looking for a serious and objective analysis of the Q2 10Q:
REVENUES
Why only $3.5M when PR’s stated $5.265M -- $960k (APR), $1.6M (MAY), and $2.7M (JUN)?
Answer: Bob was intentional when he changed the wording from “Revenues” to “Approved Orders” in his past few PR’s.
The difference of $1.765M represents approx 33.5% of the $5.265M that had been expected via the PR’s.
It appears that SCRC may be experiencing a 20-day backlog in getting orders shipped. SCRC discloses that it ships prescription products to patients upon payment approval by the patients’ insurance company, so if orders were shipped the same day then “Approved Orders” would equal “Revenue Recognized”. But it doesn’t. The $1.765M represents approx 20 days worth of sales. How do we know this? Pretty simply analytics, but I will explain it real s-l-o-w and connect each and every dot so that even JOSEPH ZAMPETTI’s illiterate cohorts can understand it:
We start by taking JUN reported “Approved Orders” of $2.7M. Divide this by 30 days and we get an average of $90.2k/day. Then we take the $1.765M “shortfall” in reported revenues in the Q and divide this $90.2k into it, which gives us 19.56, which is essentially 20 days worth of “Approved Orders”. Is this exact? Of course not. But it is enough of a ballpark estimate to use as a reasonable estimate. KEEP IN MIND THAT THIS $90.2 NUMBER WILL CHANGE EACH MONTH BASED UPON EACH MONTH’S TOTAL “APPROVED ORDERS” NUMBER.
So although it should be relatively safe to presume that ALL “Approved Orders” will eventually make their way through the process and ultimately become actual revenues, it may be safe for forecasting purposes to apply a “2-way adjustment” to all future announcements of “Approved Orders”.
The first adjustment will be to deduct 20-days worth of whatever the monthly “Approved Orders” are. I know, it sounds Draconian to take away 2/3rds of the monthly reported number, but we have to. But take heart, the second adjustment will soften the blow: We then need to ADD IN the 20-day adjustment from the prior month to reflect the fact that we now 20 days’ worth of last month’s “Approved Orders” getting shipped in the current month – which means that the revenues for the last 20 days’ worth of prior month “Approved Orders” will also be recognized in THIS current month.
Clear as mud, everyone?
Overall Thoughts: Neutral. Sure, the reported revenues are much less than everyone expected based upon the PR’s, but it appears to simply be due to a timing issue. Of course, “BS” Schneiderman is not helping SCRC’s image by continuing to issue fluff PR’s that overstate what SCRC actually gets to recognize as revenues.
COGS
SCRC disclosed an updated COGS run rate in its Q2 10Q. It states that for the YTD 6/30/14 period, COGS for what is essentially all Main Ave was only 13% and that the range is 10%-25%.
This is a significant improvement over the 25-35% during Q1.
Overall Thoughts: VERY VERY VERY EXCELLENT!!!
SELLING & MARKETING EXP
It is important to note that $820k of the $2.8M in Q2 was related to accrued commissions exp not yet payable, most likely related to revenues not yet recognized due to timing reasons. In addition, $600k is disclosed as being unrelated to Main Ave, but instead related to “special billing services”.
So, as it pertains to Main Ave, after backing out both the $820k and $600k from the $2.8M, we get $1.38M – which represents approx 40% of reported revenues. This is in line with the 30-50% estimates disclosed by SCRC previously, and – more importantly – is much better than the 50% reported in Q1.
Overall Thoughts: Mixed. Although the 40% attributable to Main Ave is very good, I am alarmed at the inexplicable increase in the “special billing services” from $71k in Q1 to a whopping $600k in Q2.
G&A EXP
Some highlights:
Employee Salaries went up $500k from $96k to $593k, due primarily to the self-awarding of options to Bob and Jeff, with a small portion related to the new employee hired in late-JUN.
Professional Fees almost doubled from $81k to $146k.
Consulting Fees skyrocketed from $10k to $123k.
Investor Relations Exp increased from $227k to $289k (w/the majority of the Q3 costs related to us shareholders footing the bill for the 8 promos that were run on the day of the P&D last month).
General Exp increased from $81k to $106k
Add’l G&A Exp paid for via dilutive shares in lieu of Cash skyrocketed from $214k to $735k
In total, G&A increased across the board from $386k to $1.2M
Overall Thoughts: Very Bad. The reckless spending got more reckless.
OTHER EXP
As I had previously theorized and hoped for, with the lion’s share of horrid financing of 2013 behind us, the overwhelming majority of Other Exp (which was comprised of line items that all related to financing transactions) have indeed almost all disappeared. Other Exp was $1.044M in Q2 and is only $67k for Q3.
Overall Thoughts: VERY VERY VERY EXCELLENT!!!
INVENTORY
$363k vs $13k @ 3/31/14
$275k is finished RapiMeds product. $65k is raw materials @ Main Ave. $23k is finished products @ PIMD.
Couldn’t care less about the $23k @ PIMD at this time, but it is interesting to see the $65k of raw materials sitting at Main Ave. At an average COGS rate of 20%, this raw material should translate to approx $327k in revenues. At July’s daily “Approved Order” rate of $135k/day, this amount of inventory will be exhausted in less than 2.5 days. Nothing to be read into this. Just an interesting tidbit.
Overall Thoughts: Mixed, but more bad than good. Although it is good to see actual RapiMed product in inventory, it is also bad to see that it has not moved as the Q discloses that nothing has shipped as of 8/14/14. This means that GlobalPharmaHub is still unable to find any retail outlets, pharmacy networks, or physician/hospital networks interested in purchasing RapiMeds. Not a good sign.
A/P
$1.1M vs $626k @ 3/31/14
Important note is that approx $820k of the 6/30/14 balance is comprised of “Accrued Commission Exp”. In addition, $165k is the reserve that was accrued for in relation to Ironridge’s suit. Take those two out and we only have approx $150k of “day-to-day” A/P, which compares very favorably with the $626k from Q1.
Overall Thoughts: Inconclusive. What is not clear is whether this $820k in Accrued Commission Exp is on the books because it is literally and legally owed but SCRC is short on cash – or whether it is simply a reflection of the terms of the sales contract w/the salesforce (i.e. perhaps the commissions are not physically payable until the order is actually shipped). What possibly supports this latter theory is that if you look at the “shortfall” of actual revenues ($3.5M) vs what had been PR’d as “Approved Orders” ($5.265M), the difference is a “perceived” shortfall of $1.765M. This $820k in Accrued Commission Exp is coincidentally 46.5% of this $1.765M – which is awfully close to the 40% commission rate SCRC reported for Q2 (not to mention falls squarely within the 30-50% range SCRC disclosed). So it could be that SCRC is being conservative and accruing for the liability once the orders are approved, but NOT paying them out until the orders are shipped and the revenues can be recognized. All speculation but the pieces sure do seem to fit and make sense.
NOTES / DEBT
Relative flat at $1.633M vs $1.588 @ 3/31/14.
Overall Thoughts: Mixed.
Convert note balances are down across the board in all categories, so on the surface that is a good thing. There are no indications that any new convert notes were issued during Q2, so on the surface that may be a good thing.
But even with all the cash that is supposedly coming in from Main Ave, and considering that SCRC hasn’t acquired any new compounding pharmacy or other business and it hasn’t launched RapiMeds yet, it is puzzling where all the money is going that SCRC still needs to borrow more money each quarter to the point where new debt exceeds whatever portions of old debt got paid down. So on the surface this would appear to be a potentially bad thing.
The big culprits are two new term loans: One for $250k and the other for $75k. Both are not only at the userous interest rate of 24% but ALSO requires SCRC to pay the lender (who is disclosed as being a current shareholder but NOT an insider – how interesting) a fixed royalty for each Rx filled. Pretty steep cost, IMO. What is concerning is that the limited disclosures do not specify that the royalty payments STOP when the note is paid down – I sure hope they don’t continue on in perpetuity. On the surface, the use of term notes in lieu of convert notes may be viewed as a good thing, but IMO, it is a bad thing because, as I’ve opined previously, convert notes are only toxic for companies with no revenues and cash flows – but in SCRC’s case, SCRC is now at a stage of its evolution where convert notes are IDEAL. Compared to this 24% + Royalty term note, a convert note would be at a much much lower interest rate, would not have any royalty liabilities, and would have the opportunity to be paid down with the increasing cash flow that SCRC is experiencing so that ultimate conversion/dilution NEVER gets a chance to occur.
DILUTION
There appears to be a discrepancy somewhere. On the balance sheets for Q1 and Q2, it reflects an O/S count of 124,088,283 and 132,753,985, respectively, which computes to 8,665,792 new shares being issued during Q2. However, if you go thru their disclosures where they list their issuances of unregistered equity securities and tally them up, you get 10,772,102 shares issued during Q2. Even adjusting for the 250k shares that SEAN FITZGIBBONS returned, there is still a massive discrepancy. Thoughts anyone?
That being said, whether it is 8.7M or 10.8M, the increase in the O/S count is a marked improvement and tightening of the spigot in comparison to the 20M shares that were issued during Q4’13 and the 32M shares that were issued during Q1’14. Is 10.8M shares still a lot? Yes. Is there still room to trim fat in this area? A hundred times yes. BUT, every trend starts with the first month of moving in the right direction, and this is a start – now let’s hope we see a continued movement in this direction toward ZERO new dilution for Q3.
We see in the Subsequent Events disclosure that SCRC already issued 3.1M additional new shares from 7/1/14 thru 8/15/14, which represents half of Q3. Assuming this run rate holds for the second half of Q3, we are projecting Q3 dilution to be to the tune of 6.2M additional new shares. Still room for improvement, but if it holds, then it would at least be an even further improvement from the 10.8M we experienced during the just-concluded Q2.
Overall Thoughts: Neutral. Again, the trend is improving, but it still sucks. What is disturbing is that Bob is increasingly protecting the consultants by no longer disclosing the identities the way he used to. Common sense will tell you why he is doing this.
PIPE FINANCING
3.45M more shares given away at .05 a pop during Q2. And in the Subsequent Events disclosure, we see that Bob has already sold over a million more shares of PIPE stock during the 7/1/14 thru 8/4/14 period. So we are now more or less around 25M shares of .05 PIPE shares out there. This represents almost 20% of the entire O/S count and an even more obscene percentage of the float.
Overall Thoughts: VERY VERY BAD. What is a continuing bad trend is that Bob continues to protect JOSEPH ZAMPETTI and his illiterate cohorts by refusing to disclose the identities of the “private investors” even though he continues to disclose the identities of all other financiers.
And as I stated above with the Term Notes, there is ZERO reason to enter in this type of financing. Convert notes are much more affordable and have the very real opportunity to PREVENT dilution by paying down the notes prior to conversion now that SCRC is generating all this cash.
There is without a doubt some unholy quid pro quo that has been arranged under the table between “BS” Schneiderman and JOSEPH ZAMPETTI.
LIQUIDITY CONCERNS
SCRC continues to forecast that even after taking into consideration its 2014 interim results to date and current projections for the remainder of 2014, it believes that the Company’s cash flow from operations, even after adding in with recent financings, may NOT be sufficient to support the working capital requirements necessary to cover its operating and debt service expenses thru 6/30/15.
Keep in mind as well the disclosure that $1.5M in additional funding will still be required to launch RapiMeds in the US – and the Q discloses that SCRC plans on launching it in 2014.
Overall Thoughts: Neutral. This has been the case since SCRC’s inception, but it serves as a baseline (not to mention a good reminder) for folks to weigh against the merits of any kool-aid that gets served up. Folks need to keep in mind that SCRC is still trying to turn the corner from being a development stage enterprise to being a full operating company.
CASH BURN
SCRC continues to be deceptive in how it reports cash burn. It is now stating it only needs $135k/mo. Without even considering the cash needed to pay commissions and selling costs, and without considering Other Expenses, even if we just look at G&A expenses (and we even back out the $440k in options expenses that Bob awarded himself and Jeff), SCRC ran a $817k rate for Q2. Divide by 3 and we get $272k/mo worth of true cash-based expenses. As I’ve stated previously, just because a vendor was willing to take discounted stock as payment, this does not decrease the cash needs of the company.
Overall Thoughts: Bad.
PIMD
PIMD supposedly launched in JUN, but apparently did not and brought in ZERO revenues. Per the Q, the launch has been pushed back again, with the latest proclamation being that it will launch during Q3’14.
Overall Thoughts: Neutral. But only because I wasn’t expecting PIMD to contribute anything anyways. But going forward, it needs to start bringing home the bacon.
WRx
Commissions revenues continue to slide, $75k vs $83k in Q2, a drop of 10%.
Overall Thoughts: Neutral. But only because WRx is so immaterial now that I don’t even consider it in any of my SCRC forecasts and view anything over $0 as a bonus.
MAIN AVE
Interesting disclosure: The “Business Management Agreement” has been amended effective 4/1/14, and so now SCRC will receive 100% of the profits and losses of Main Ave. Wonder if the VIE interpretation and accounting application was on shaky ground?
Overall Thoughts: Good development. This now renders the VIE issue moot for Main Ave and paves the way for a much cleaner way to survive an audit on the way SCRC is reporting and consolidating 100% of Main Ave revenues.
NEW EMPLOYEE
Hmmm… …let’s see here:
In late-APR, SEAN FITZGIBBONS “graciously” returned 250k shares that he had previously received as compensation for providing “investor relations-related consulting services”. Who gives up something substantial like this to a company for no reason???
In late-JUN, SCRC hires an unnamed employee who is going to be paid 6-figures but somehow has no title and awards this new employee 250k stock options.
In early-JUL, SEAN FITZGIBBONS seemingly drops off the face of the earth, as if he fell into a cave or something, as, by and large, radio silence becomes his new MO of choice.
Coincidence?
Overall Thoughts: Neutral. Although if it is indeed SEAN FITZGIBBONS, I sure hope his employment contract w/his present employer does not prohibit him from taking a second full-time job. Most senior level positions at large companies require their employees to devote “full-time efforts” to the company and explicitly prohibit the taking of second jobs. SEAN is a heck of a promoter, but he’s just gotta work on his schtick so as to not come across as a slimy insincere used car salesman all the time. Now get to work Sean and promote SCRC! Your shareholders need it badly!!!
I am simply asking for a link. I know how to read a financial statement as well as a quarterly report. My simple question was to someone on this board to provide me the actual link for me to look at it myself. That's all. Thanks in advance.
CHP, you repeatedly (try to) dodge the question.
Apology accepted, martin...
there is no link and there is no such documentation that I can find, anyone I know can find, that exists
What kind of retail investor either has no clue how to read a basic set of financial statements or has no clue how to even identify basic information within standard SEC filings? Especially disclosures that are standard disclosures that EVERY company makes and which SCRC itself has made each and every quarter?
Like I said, only those who hold the 0.00 shares and the 0.05 PIPE shares would go thru life not caring about SCRC's filings because they know that their entire strategy is bsaed upon P&D's in conjunction with fluff PR's immaculately timed and issued by "BS" Scheiderman. They have no use for fundamental metrics and it shows.
So how many more shares will they have to shell out to Ironridge? I don't think I want to know.
On February 10, 2014, Ironridge made a request for, and we issued, an additional 1,615,550 shares of the Registrant’s common stock as a result of the adjustment provisions under the Stipulation in the court order issued by the California State Court.
On April 4, 2014, Ironridge requested even more shares pursuant to the adjustment provision under the Stipulation in the court order issued by the California State Court. This time their request was for an additional 1,646,550 shares of the Company’s common stock. We declined to issue these additional shares because Ironridge had already received, to that date, approximately 10,305,550 shares of free trading stock with a market value of approximately $1.2 million (based on the closing stock price on May 6, 2012), in settlement of a Final Amount of $766,238.29. The shares issued to Ironridge represent a premium of 48% to the Final Amount.
On May 6, 2014, Ironridge submitted an ex parte application to the California State Court to compel the issuance of the 1,646,550 shares requested from the Company on April 4, 2014, and the California State Court without a hearing entered an order to compel the Company to issue the additional shares. On the same day, we filed a notice of appeal with the California State Court’s order. The appeal automatically stays enforcement of the California State Court’s May 6 order.
We believes that Ironridge is not entitled to additional shares as it has received a significant premium on the Final Amount which Ironridge itself had declared to the California State Court served as the basis of the adjustment mechanism for the number of shares issued based on the Company’s stock price. We will vigorously pursue the appeal, and reversal, of the California State Court order.
The Company accrued the potential issuance of these shares and have expensed $164,655 to financing cost in the financial statement as of March 31, 2014.
Several others who own shares and I cannot find anywhere, in any filings, what CHP posted either.
A common tactic by BS and con artists is to accuse the accuser or try to change the focus. Psychiatrists call it deflecting. Others call it ridiculous.
So are you saying you can't copy and paste the info Rocky requested?
So are we playing 20 Questions now?
CHP, is it possible that you obtained the #s you got for July thru Sept from a transfer agent?
All I see is the total # of shares issued and there is no breakdown of the exact #s you reference and post.
It seems to me you have access to other information that I do not.
Again, please provide how you obtained these specific #s given what is in the Qs do not provide such an exact breakdown.
Where exactly? Please copy/paste for everyone to see.
CHP, I rarely read what you post.
I am of the opinion the p/s will improve over time
and my family and I can afford to wait while adding more shares at these bargain basement prices.
However, I did see you posted:
coolerheadsprevail Tuesday, 08/12/14 02:35:33 PM
Re: None
Post #19037
Here is a detailed schedule of PIPE shares:
4.8M unlocked in JUL
5.2M have/will unlock in AUG
6.8M will unlock in SEP
2.8M will unlock between OCT 1 and NOV 20
Please provide everyone here a link and an explanation where you accessed such detailed information.
If these pipe shares are as bad as everyone says they are and are currently factored into the o/s #,
why not do a 4-1 reverse split then? 10-1?
Not true. Hedge funds will buy penny stocks.
I wish you would grow up. What are your plans after grade school?
Everyone who supports SCRC is a parasite, criminal, or nitwit. I wish you would grow up.
Someday I hope I can be as knowledgeable about the stock market as you and CHP are.
I would say hedge funds, and the street.
Cooler, if the rumor "is true" that SCRC will announce they are CFP in August, where do you see the PPS going? Thanks.
Per the 10Q:
$ 117k Royalty Exp
$ 96k HR Exp
$ 81k Professional Fees Exp
$ 10k Consulting Fees Exp
$ 227k IR & Marketing Exp
$ 81k General Exp
$ 214k Share-Based Compensation for Additional G&A Exp
$ 83k Interest Exp
--------
$ 909k TOTAL CASH-BASED EXPENSES FOR Q1
=====
Divided by 3 yields a TRUE cash need of $303k/mo.
And this doesn't even include the $813k in Financing Costs that SCRC incurred during Q1. We have no visibility on how much of this $813k represented costs that would normally have been payable in cash but ended up being paid for via additional shares. Adding this $813k brings the $909k up to potentially $1.722M for Q1, which computes to $574k/mo in cash needs.
The $160k that was disclosed as "monthly cash burn" and is heavily touted as being the low threshhold that SCRC needs to reach in order to be cash flow positive is severely misleading as Bob "BS" Schneiderman knows full well that this amount ONLY represents those payables for which the vendor refused to accept dilutive stock as payment, but instead demanded cash. SCRC incurred much more expenses for which it was able to convince vendors to accept deeply discounted dilutive stock (that is immediately free-trading BTW, so shareholders have NO advance warning when these hit the float) in lieu of cash -- BUT this should NOT be deducted from SCRC's cash burn the way Bob/Jeff are doing since "cash burn" is intended to represent a company's cash needs. The way Bob/Jeff is presenting cash burn is simply a variation of the cash flow statement where they simply pick out those cash flow items related to G&A expenses -- which is by no acceptable measure an appropriate method for computing cash burn.
SCRC has increased the compound business over the last five months TENFOLD.