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Paul
Bottom line...
If the float of a company is 10M shares is it easier to move the stock than when the float is 100M - Supply and Demand
Companies have share buybacks to reduce the outstanding so they have better EPS #'s. If a company makes $10M and there is 100M outstanding it is $.10/share EPS if the same company has 50M shares outstanding the EPS is $.20
Cheers
Greg
The # of outstanding share is getting closer between the 2 companies - lol
As of February 9, 2005, there were 70,694,173 shares - from FATS SEC filing plus their revenue is $80M/yr with some large recent contract awards
Take care
Paul
Obviously it is not dilutive if they don't utilize the line but there must be a need or they would not have signed such a deal. Until they become cash flow positive the line will be used and shares printed...
The 2002 Dutchess Deal
The 2005 deal is more expensive - this one has 8% interest as well
In July 2002, the Company entered into an agreement for up to a maximum $5,000,000 sale of its common stock to Dutchess Private Equities Fund, LP (“Dutchess”). Under this investment agreement the Company has the right to issue a “put notice” to Dutchess to purchase the Company’s common stock. Put notices cannot be issued more frequently than every seven days. The required purchase price is equal to 92% of the average of the four lowest closing bid prices of the common stock during the five-day period immediately following the issuance of the put notice. Each individual put notice is subject to a maximum amount equal to 175% of the daily average volume of the common stock for the 40 trading days before the issuance of the put notice multiplied by the average of the closing bid prices of the common stock for the three trading days immediately preceding the put notice date. Regardless of the amount stated in a put notice, the maximum amount that Dutchess is required to purchase is the lesser of the amount stated in the put notice or an amount equal to 20% of the aggregate trading volume of the common stock during the five days immediately following the date of the put notice times 92% of the average of the four lowest closing bid prices of the common stock during this five-day period.
In connection with this investment agreement the Company issued $450,000 in convertible debentures. The debentures bear interest at 5% per year payable in cash or registered common stock at the Company’s option. The debentures mature in September 2005 and are convertible, at the option of the holder, to shares of the Company’s common stock at a conversion price per share equal to the lower of (i) 85% of the average of any four or five closing bid prices for the common stock for the five days prior to the conversion date; or (ii) 125% of the volume weighted average price on the closing date.
In addition, the Company issued to the holders of the convertible debentures warrants to purchase 500,000 shares of the Company’s common stock with a strike price of $0.71 per share and a conversion period of three years. Using the Black-Scholes option pricing model with the following assumptions: (i) volatility of 100%, and (ii) interest rate of 5%, the value of the warrants were estimated to be $89,400, which was recorded as interest expense in the accompanying statement of operations. Accordingly, the actual weighted average interest rate on these debentures, including the effect of the cost of the beneficial conversion feature of $67,500, is approximately 15%.
Dutchess
Is not in the business to lose $ - they play both sides and the middle...IMHO
Bill - No Chance
The money is needed for working capital and orders when they come
Dilution Dilution Dilution
6M added shares from the debt reduction in Dec plus more here - comments in CAPS
This Agreement provides that from time to time, following notice to the Investor, we may put to the Investor up to $6,000,000 of our common stock for a purchase price equal to 94% of the lowest closing bid price of our common stock on the Over-the-Counter Bulletin Board during the five day period following that notice. DUTCHESS PRICE POINT IS THE BID NOT THE ASK THEN 6% DISCOUNT OR .94 OF SAY .30 BID - $6,000,000 DIVIDED BY .28 =21.5M SHARES NOT 18M The number of shares that we are permitted to put under the Agreement is either: (A) 200% of the average daily volume of the common stock for the ten trading days prior to the applicable put notice date, multiplied by the average of the three daily closing bid prices immediately preceding the put date; or (B) $50,000; provided however, that the put amount can never exceed $1,000,000 with respect to any single put.
CONVERTIBLE DEBENTURES!!!!
We also entered into a debenture subscription agreement with Dutchess Private Equities Fund, L.P. and Dutchess Private Equities Fund II, LP, under which those entities agreed to purchase $750,000 in principal amount of our three year convertible debentures bearing interest at 8% per annum (payable in cash or stock at our option) and convertible at the lesser of (i) 80% of the lowest closing bid price during the 15 days of full trading prior to the conversion date; or (ii) $0.33.[/B] $500,000 TAKEN ALREADY AT 80% OF THE BID OR .33 IF STOCK IS HIGHER AT 8%. SAY THE BID IS .30 X .8 = .24 OR 2.1M SHARES THEN THERE IS 8% INTEREST - $500,000 X .08 SO COST IS $40K FOR 1 YEAR NO $ SO MORE STOCK OR 167,000 SHARES. The initial $500,000 in principal amount was purchased when we signed the Agreement referred to above. The remaining $250,000 in principal amount is to be purchased only when we have filed a registration statement covering sale of the shares issuable upon conversion of the debentures.
AND WARRANTS TO BOOT...
Upon issuance of the initial $500,000 in principal amount of debentures, we issued the purchasers five year warrants to purchase 500,000 shares of our common stock at $0.33 per share. Upon purchase of the remaining $250,000 in principal amount, we are obligated to issue the purchasers warrants to purchase an additional 250,000 shares at the lesser of $0.33 per share or the lowest closing bid price of our common stock during the five trading days prior to the funding the additional $250,000.
IT IS A DEAL WITH THE DEVIL IMO AND I SAID IT FOR QUITE SOME TIME
Mistake prior to close
"Clearly, I am mortified by my mistake and apologize for any inconvenience. Fortunately, the market was closed during the brief minutes this error was in place."
The erroneous PR hit 16 minutes prior to the close at 3:44 EST
Press Release Source: VirTra Systems, Inc.
VirTra Systems Secures $8.75 Million in Financing
Wednesday March 2, 3:44 pm ET
ARLINGTON, Texas, March 2 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (OTC Bulletin Board: VTSI - News) today announced finalization of financing agreements totaling $8.75 million, in the form of $750,000 in convertible debentures and an $8 million equity line.
Amazing!!!
I can't believe he would go into and disclose details of the negotiations as an explanation - do you think Jack Welch would have done this as someone recently compared Mr Jones to...
"I have attached a photocopy of a corrected press release indicating our total financing with Dutchess being $6.75 million, rather than the $8.75 million mentioned within the original release, and as discussed in my letter to you earlier this afternoon.
Clearly, I am mortified by my mistake and apologize for any inconvenience. Fortunately, the market was closed during the brief minutes this error was in place.
By way of explanation, and not of excuse, the original Dutchess term sheet called for an equity line of $10 million. However, when Andy Wells and I, coupled with our consultants at The Dorato Group, projected our needs for capital over the next 18 months, we felt such a large equity line, and the corresponding underlying registration, was unnecessary, and negotiated with Dutchess to reduce the equity line to $6 million.
When we put together this afternoon's press release, and my accompanying letter to you, my memory of the revised figure failed me, leading me to the incorrect number in the release."
The revised figure failed him - I am surprised the PR did not have to be approved or at least run by Dutchess prior to release to ensure accuracy
The Dutchess full filing
http://yahoo.brand.edgar-online.com/doctrans/finSys_main.asp?formfilename=0001162327-05-000019&n...
Print it and read it to be fully informed
The sale of stock to run the business - more dilution...
Back to Dutchess for $
http://biz.yahoo.com/e/050302/vtsi.ob8-k.html
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On February 25, 2005, we entered into an investment agreement (the Agreement) with Dutchess Private Equities Fund II, LP (the Investor). This Agreement provides that from time to time, following notice to the Investor, we may put to the Investor up to $6,000,000 of our common stock for a purchase price equal to 94% of the lowest closing bid price of our common stock on the Over-the-Counter Bulletin Board during the five day period following that notice. The number of shares that we are permitted to put under the Agreement is either: (A) 200% of the average daily volume of the common stock for the ten trading days prior to the applicable put notice date, multiplied by the average of the three daily closing bid prices immediately preceding the put date; or (B) $50,000; provided however, that the put amount can never exceed $1,000,000 with respect to any single put.
We also entered into a debenture subscription agreement with Dutchess Private Equities Fund, L.P. and Dutchess Private Equities Fund II, LP, under which those entities agreed to purchase $750,000 in principal amount of our three year convertible debentures bearing interest at 8% per annum (payable in cash or stock at our option) and convertible at the lesser of (i) 80% of the lowest closing bid price during the 15 days of full trading prior to the conversion date; or (ii) $0.33. The initial $500,000 in principal amount was purchased when we signed the Agreement referred to above. The remaining $250,000 in principal amount is to be purchased only when we have filed a registration statement covering sale of the shares issuable upon conversion of the debentures.
Upon issuance of the initial $500,000 in principal amount of debentures, we issued the purchasers five year warrants to purchase 500,000 shares of our common stock at $0.33 per share. Upon purchase of the remaining $250,000 in principal amount, we are obligated to issue the purchasers warrants to purchase an additional 250,000 shares at the lesser of $0.33 per share or the lowest closing bid price of our common stock during the five trading days prior to the funding the additional $250,000.
In connection with the Agreement and the debenture subscription agreement, we agreed to register the shares issuable under the Agreement, upon conversion of the debentures and upon exercise of the warrants.
Copies of the Agreement, the debenture subscription agreement, the form of the debentures, the form of the warrants, and the form of the registration rights agreements are filed as exhibits to this Form 8-K.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits:
10.1 Investment Agreement with Dutchess Private Equities Fund, II LP
10.2 Debenture Subscription Agreement
10.3 Form of Convertible Debenture
10.4 Form of Warrant
10.5 Form of Registration Rights Agreement
Married to a stock
One of the big issues people experience IMO when investing is they get "Married to a Stock" and as they say it is very easy to buy but people are more reluctant to sell especially small companies. They take the word of the CEO - who in most cases has the most invested or the most to lose. The facts tell the story as the CEO will ALWAYS say things "have never been brighter"...
It does seem the long time brethren, supporters and Kelly is God contingent are very quiet but they sure do attack when someone gets antsy and asks a few tough questions. I guess the cause is the promised news has not appeared....
Bill
Agreed - they all seem to wait until the last minute. The issue is the CEO said a few weeks ago it would be 30 days early.
Time will tell...
Paul
I'll let Bill answer your query but my opinion is he does not understand the fact that it seems all of the company's revenue/sales eggs are tied to the Bush $80B defense budget which was posted earlier today is not expected to be approved until July at the earliest.
Bill
Releasing the information early? Releasing the information and filing quarterly and annual reports is an obligation which must be complied with in order for the company and all public companies to stay on their exchange in this case the OTC.BB to avoid being delisted to the pink sheets. You make it seem like he's doing everyone a favor...all companies must file whether their information is good or bad to remain in compliance.
Today is 3/1 anyone know when the report will be filed and released?
http://www.secfile.net/SEC_calendar.htm
EDGAR Filing Deadlines for Quarterly and Annual Repoort
Non-Accelerated Filers
Filing Due Date Period Ending
Friday, January 14, 2005 11-30 Quarter End (2004)
Monday, January 31, 2005 10-31 Fiscal Year End (2004)
Monday, February 14, 2005 12-31 Quarter End (2004)
Thursday, March 03, 2005 11-30 Fiscal Year End (2004)
Thursday, March 17, 2005 01-31 Quarter End (2005)
Thursday, March 31, 2005 12-31 Fiscal Year End (2004)
Thursday, April 14, 2005 02-28 Quarter End
Monday, May 02, 2005 01-31 Fiscal Year End
Monday, May 16, 2005 03-31 Quarter End
Monday, May 30, 2005 02-28 Fiscal Year End
Tuesday, June 14, 2005 04-30 Quarter End
Wednesday, June 29, 2005 03-31 Fiscal Year End
Friday, July 15, 2005 05-31 Quarter End
Friday, July 29, 2005 04-30 Fiscal Year End
Monday, August 15, 2005 06-30 Quarter End
Monday, August 29, 2005 05-31 Fiscal Year End
Wednesday, September 14, 2005 07-31 Quarter End
Wednesday, September 28, 2005 06-30 Fiscal Year End
Monday, October 17, 2005 08-31 Quarter End
Monday, October 31, 2005 07-31 Fiscal Year End
Monday, November 14, 2005 09-30 Quarter End
Tuesday, November 29, 2005 08-31 Fiscal Year End
Thursday, December 15, 2005 10-31 Quarter End
Thursday, December 29, 2005 09-30 Fiscal Year End
Monday, January 16, 2006 11-30 Quarter End
Tuesday, February 14, 2006 12-31 Quarter End
Tuesday, February 28, 2006 11-30 Fiscal Year End
Friday, March 31, 2006 12-31 Fiscal Year End
General Filing Deadline
Non-Accelerated Filers
Form 10-Q /10-QSB 45 days after end of fiscal quarter
Form 10-K /10-KSB 90 days after end of fiscal quarter
Ron - Evansup
I assume this is the week you are in Arlington from your messageand visiting Virtra - Kelly - we look forward to your report.
You said: "ByloCellhi - I've just been back in the water for another load. My net is wearing out.(LOL) I looked at my Medved Quote Tracker screen and its almost all VTSI. It's out of balance for sure. I'm waiting on some news as we all are.
The first few days in March I plan on visiting Virtra in Arlington, TX. to see things for myself. Will report to the board when I get back to Florida.
Best, Ron"
http://www.investorshub.com/boards/post_reply.asp?message_id=5415581
David OT
Now that you think of it that "getting snowed" can be when Kelly has talked of "things have never looked brighter" over the last few years.....
David - Correct OT
We are expecting another 8-12 inches of snow starting this afternoon in New England....enough already.
Bill - Guaranteed!
The PR will read as follows: VirTra POSTS PROFIT!!!! Mention the debt reduction and not mention the disapointing revenue trend. The problem is you cannot fool - THE STREET...
We'll see
Paper Profit not Operational
The company as Kelly stated in the recent con call will announce a paper profit this week (he stated a few weeks ago the SEC filing would be filed by 2/28).
The paper profit IMO is purely from the debt reduction and the converstion of the leaseholder debt to stock. The company has been accruing interest from the debt each quarter on the income statement. So with that debt now converted that interest will not be paid and a one time non-cash reversal from previous expenses can be taken.
Here are some details:
Revenue:
12/01 Full Year $2.5M or $2,463K
12/02 Full Year $2.3M or $2,280K
12/03 Full Year $1M or $984K
9 Mos as of 9/04 $974K
Interest Expense:
12/01 $1,457K
12/02 $1,549K
12/03 $857K
9 Mos 9/04 $765K
Total $4,628K plus prior years not paid.
This interest expense from prior qtrs/years will be a one time assist to the income statement and will make the company "profitable" but not operationally. In addition, the interest expense line should be reduced with the leaseholder conversion going forward.
This is my interpretation of what will happen. The key is to become cash flow positive from operations. The other issue is what will the outstanding # of shares grow to as of 12/31 as dilution continues.
This is the week Kelly stated we will see the audited filing. Time will tell...
5 Years Waiting
From one year ago...Gitman you going to attack everyone?
http://www.investorshub.com/boards/read_msg.asp?message_id=2497810
I'm a new poster to the board, but I have been a share holder running back to the GAMZ eara in 2000.
I do the appreciate the hard work that Greg and others post. I have become frustrated about the lack of meat to the meal. I've farmed in my past, Retired from the service and now have my own small buis.
If I only feed cows hay I only produce enough milk to feed the cats, if I feed the cows Oats and Corn with Hay; I can feed this whole board and VTSI's company. We've been led by the nose for a good amount of time with many (justs missed deals).
Jan. Feb. exciting things to come. Again just missed. Yes the Company is moving forward, but where is the Meat we've been told over and over, It's in the very near Future or around the corner.
I'm in this and have been for the long haul along with many of my friends and Relatives. We cannot grow on maybe and it's coming, and this Company is to far along, to keep delivering an empty glass. Put somthing in our glasses that we can drink. I do'nt care to hear the gallon is still at the store, enough of that. Still long but frustrated. Ndakota
Weeble
The Bush budget plan didn't stop this announce - it was outside "the plan" - Singapore with the Dutch. It's called more irons in the fire than just one and thinking "outside the box"....
Take care
Relationships?
FATS other award was teaming with Lockheed Martin - this $17M contract is with Force Technology
About Force Technology
Force Technology is a Danish company with over 1,000 employees worldwide. The Division for Maritime Industries (DMI), which evolved from the Danish Maritime Institute, has extensive research, ship modeling and ship handling simulator experience.
Ya think VTSI needs to establish some relationships?
Weeble
By chance if I recall in early Jan you said VTSI was going to get a contract like this by 3/1? If not even you would be disappointed?
Where are the sales?
Gitman
"If it were not for Kelly, VirTra wouldn't exist today. We would have been bankrupt long ago. Kelly knows exactly what he is doing and is doing an excellent job."
These words make alot of sense.
As Greg replied - yeah what he said...
I didn't start the discussion - others did and the information posted were facts from the company SEC filings and other resources.
Be well and take care
Bull
The Scott may know doughnuts but last time I checked Krispy Kreme was cooking the books...bad business plan vs Dunkin Doughnuts which sells coffee, doughnuts, and many other products and great marketing.
Krispy Kreme is a fad IMO and the bubble has burst. Once you've had one the glitter is gone - won't have another - the fattiest thing ever...
Bull - John Chambers
The rest of the story - Look at his experience prior to CISCO. Here is the rest of his education:
Chambers holds an M.B.A. degree in finance and management from Indiana University. He received a J.D. degree and a B.S./B.A. degree in business from West Virginia University
John Chambers
EXECUTIVE PROFILES
John T. Chambers
Cisco
Age: 48
John Chambers is President and Chief Executive Officer (CEO) of Cisco Systems, the worldwide leader in networking for the Internet. He joined the company as the second in command when Cisco had $70 million in annual sales and a market cap of $600 million. During the past four plus years as President and CEO*, Chambers has grown the company from $1.2 billion in annual revenues to its current run-rate of $14 billion by establishing leadership in key technology sectors of the networking industry and aggressively pursuing new market opportunities.
Silicon Valley's hometown publication, Upside Magazine, recently ranked John Chambers as "the top titan of the digital world." Worth Magazine named John Chambers the #2 CEO in America in April 1999. For the second time in three years, Business Week has named Chambers one of the top 25 executives worldwide. Chambers was also designated "CEO of the Year" for 1997 in a poll of industry executives conducted by Electronic Business magazine. Widely recognized as one of the most innovative and dynamic leaders in global business today, Mr. Chambers is a member of President Clinton's Committee for Trade Policy.
At a recent White House event, President Clinton and Vice President Gore referred to Cisco as "one of the most respected companies, not only in [the networking] field, but in any field" and described Chambers as "a true leader in this industry, in America's economy and in the global economy."
Just fifteen years ago, Cisco Systems did not exist. Today, Cisco is the fastest growing company in the history of the computer industry. With a market cap of more than $200 billion after only fifteen years in business, Cisco is among the ten highest valued companies in the world.
Cisco is also the best example of a company that has made the most of the Internet's vast opportunities to gain a sustainable, competitive advantage. In 1997, Cisco did one-third of the world's electronic commerce. Today, over 80% of the company's orders are transacted over the Internet. In 1998, Forbes ASAP designated Cisco as the country's most dynamic company and Fortune calls Cisco one of the 25 best companies to work for in the U.S. Network World rated Cisco 'thee most powerful company' and John Chambers 'thee most powerful CEO in the industry.' And, this year, Cisco was ranked #1 and described as the "most intelligently Net-savvy company going" by Business 2.0 in its report on the "Top 100 Hottest Companies on the Net".
Prior to joining Cisco, Mr. Chambers spent eight years at Wang Laboratories and six years with IBM. Mr. Chambers holds an M.B.A. degree in finance and management from Indiana University. He later received a J.D. degree and B.S./B.A. degree in business from West Virginia University.
Through vision and innovation, Cisco and its leaders have built the Internet, and by doing so, have empowered an Internet Generation.
* Chambers was named President and CEO on November 15, 1994. His position became official in January 1995.
Chambers holds an M.B.A. degree in finance and management from Indiana University. He received a J.D. degree and a B.S./B.A. degree in business from West Virginia University.
He and his wife, Elaine, reside in Los Altos Hills, California. His daughter, Lindsay, is a college sophomore and his son, John, is a high school senior.
Source: Cisco Web Site
Goose
"you're presuming that there is someone on the inside to whom kelly should offer the reins"
I didn't say that either - if the experience needed is not internal then get another one external like he did with Michael Kitchen - incentive based contract with a low base salary.
There are numerous experienced hired guns out there in the industry.
Goose
I did not suggest him Ratman did...just posting some info to share public information
Michael Kitchen
Was this his employment contract when hired in 9/03?
From the SEC filing - is he ready to be CEO?
Employment Contract
Effective September 1, 2003, the Company entered into a contract with an employee whereby the employee is to receive a base salary and a four percent cash commission on all sales originated by the employee. In addition, the employee is entitled to receive options to purchase 1,000,000 shares of the Company’s common stock with an exercise price of $0.10 per share, if certain sales targets are achieved for each of the next three years. If the sales targets are not achieved, the stock options will not be granted. As of December 31, 2003 the sales target has not been achieved and, therefore, no stock options have been granted.
Michael Kitchen
From the SEC filing:
Michael Kitchen, age 30, is currently our vice-president of training and simulation sales. Mr. Kitchen is a veteran in the sale of firearm training simulators, with over seven years’ experience in the industry. He is a graduate of The University of Colorado, earning a B.A. degree in economics, with an emphasis in international marketing. Mr. Kitchen is responsible for all aspects of our regional, national, and international sales campaigns within the training/simulation market. Before joining our company, Mr. Kitchen was vice-president of international sales for Interactive Training, Inc. (“IES”). At IES, he was responsible for developing and managing operational sales plans for the international market.
Bull
What are you talking about? - Carly Fiorina
Check out her experience and educaction post Stanford - a fine educational institution as well. Kelly is no Carly Fiorina.
Be careful what you ask for....
http://www.miami.com/mld/miamiherald/business/10855593.htm?1c
Carly Fiorina at a glance
Associated Press
NAME - Cara Carleton Sneed Fiorina.
BIRTHDATE - Sept. 6, 1954.
EDUCATION - Bachelor's degree in medieval history and philosophy, Stanford University, 1976; master's in business administration degree, University of Maryland, 1980; master's of science degree in management, Massachusetts Institute of Technology, 1989.
EXPERIENCE - Saleswoman, marketing posts and other executive positions, including head of North American network systems, at AT&T Corp., 1980-1996. Helped lead spinoff of equipment/research division into Lucent Technologies Inc. in 1996. President, Lucent's global service provider business, 1998-1999. Named chief executive and president of Hewlett-Packard Co. in 1999 and given the title of chairwoman in 2000. She resigned from the company Feb. 9, 2005, citing differences with the board over executing its strategy.
FAMILY - Husband, Frank Fiorina; two stepdaughters.
QUOTE: "Oh, I'm sure I've made my share of (mistakes). I don't think I've made more than my fair share of them, although I think more has been made of the ones that I've made," from an October 2001 interview with The Associated Press.
Bull
Jack Welch - the ex CEO of the largest conglomerates in the World?
Take a minute and read this - Kelly Jones is no Jack Welch
http://www.businessweek.com/1998/23/b3581001.htm
An excerpt - he started at GE in 1961:
John Francis Welch Jr. had worked for General Electric not much more than a year when in 1961 he abruptly quit his $10,500 job as a junior engineer in Pittsfield, Mass. He felt stifled by the company's bureaucracy, underappreciated by his boss, and offended by the civil service-style $1,000 raise he was given. Welch wanted out, and to get out he had accepted a job offer from International Minerals & Chemicals in Skokie, Ill.
But Reuben Gutoff, then a young executive a layer up from Welch, had other ideas. He had been mightily impressed by the young upstart and was shocked to hear of his impending departure and farewell party just two days away. Desperate to keep him, Gutoff coaxed Welch and his wife, Carolyn, out to dinner that night. For four straight hours at the Yellow Aster in Pittsfield, he made his pitch: Gutoff swore he would prevent Welch from being entangled in GE red tape and vowed to create for him a small-company environment with big-company resources. These were themes that would later dominate Welch's own thinking as CEO.
''Trust me,'' Gutoff remembers pleading. ''As long as I am here, you are going to get a shot to operate with the best of the big company and the worst part of it pushed aside.
Ratman
To answer your question - sounds like a good suggestion. Kelly can spend the majority of time doing what he does best working at Cannon, Jones etc with the more ceremonial position of COB.
They need someone with knowledge of the industry to be spokesman of the company. Most CEO's I know are experts in their field that the company is involved.
Ratman
It is obvious - Kelly has little or no experience running a public company. He is suited to review contracts and defend lawsuits - see below. He started this public company in an effort to make $ in a brewery and somehow it evolved into a defense training company. The main thing he brings to the party is he is a majority shareholder, writes press releases after someone else accomplishes something. In a startup the CEO needs to be more than that IMHO. He does also write nice upbeat letters as followup to the PR's
L. Kelly Jones, age 51, had been chief executive officer and a director of GameCom since March of 1997. He currently sits as VirTra System's chief executive officer and chairman of the board of directors. Mr. Jones graduated from the University of Texas in 1978 with a juris doctorate degree, and from Stephen F. Austin State University in 1975 with a bachelor of arts degree. Mr. Jones founded the law firm Jones & Cannon, which provides legal services for VirTra Systems. In July of 1980. Mr. Jones was certified in the area of commercial real estate law by the Texas Board of Legal Specialization in 1984, and was re-certified in 1989, 1994, and 1999. Mr. Jones' areas of practice include corporate, construction, real estate, municipal law, and commercial litigation. Mr. Jones, who is licensed to practice law in the states of Texas and Colorado, served from 1985 through 1989 on the Arlington City Council, and also served on the Stephen F. Austin State University Board of Regents from 1987 through 1993, where he was chairman from 1991 through 1993.
Charlie
If the products are state of the art then shareholder friendly venture capital would be available. In addition life is all about relationships and my point was the current mgmt does not appear to have the best funding relationships to obtain their working capital needs.
Analogy for the consmumer - using 20% credit card debt to finance a car vs getting 2.9% from Toyota...
Finance Experience Lacking
This goes back to my comment last week - see below - the previous Dutchess deal was a bad one IMO and unfortunately the money shylocks have small undercapitalized companies with few options in the best interest of shareholders.
http://www.investorshub.com/boards/read_msg.asp?message_id=5457329
"You would think the company would have more experience in the Finance area to better negotiate funding requirements/needs, and manage the balance sheet, costs, budgets, proforma income statements and daily operations
Take care
Paul
I didn't quite get that far after your belittling comment about magic dust or something...
You said: "Do you think there is some magic dust that gets sprinkled on a company just because it's on another exchange?"
Take care
Yo Paul
You said: "Do you think there is some magic dust that gets sprinkled on a company just because it's on another exchange?"
Magic dust - nah BUT if a company gets off the unrelegated OTC to the Full NASDAQ, AMEX (the easiest to get on) and then of course the prestigoous NYSE.
The point is if they move the next exchange it means they have attained some major hurdles - ie stock price appreciation, net worth, etc
Then issue is they haven done following you state which is needed "the sales roll in, earnings ramp up, capable management is hired, the stock climbs, the financial markets open up for proper funding, the market cap justifies a look from institutions, and so on."
Too bad about Teddy Bruschi - one of the good guys...
Fool
I never mentioned the word bankruptcy and the debt reduction was a good thing.
Plus the company continues to have a number of options to avoid it.
The question is how long will the employees agree to below market salaries with the carrot of the "big hit" from the company's stock. I am sure many have mortgages to pay and are struggling to make ends meet as they could go out and get twice their current salary in the marketplace from an established company.
The company has many more shares they can print to raise cash for working capital but IMO that is a going out of business strategy and eventually companies need to have an operational profit and the key is POSITIVE CASH FLOW.
As someoone states it is always good to sell products but not to sell stock.
Of course if the company gets real desparate they can do a reverse split.
They need to get off the OTCBB - Kelly has been attempting that for 3 years now and his line each January - paraphrasing here - we hope to have that accomplished by the end of the year.
Time will tell