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We only had three problems, ladys and gents.
Debt
~80% of this is already being restructured as we speak, leaving us with ~20% left in contention. This is a matter of time, and the patience will be rewarded.
14-C
Wost case is R/S. Best case is P/S structuring via A/S. We could possibly see some dilution here, but the upside will still be large for patient holders.
Litigation
This is our only major pitfall, IMO. With that said, David was very confident on the phone regarding the subsidiary litigation and to quote him: "We'll be just fine; and why is that [name]? Because we don't lose. We're experts at playing defense." we'll know more when we receive the audit PR.
Fuselier discussed that they would aim for one unless his schedule got too cramped. Worst case is next week regarding to audit status.
Or any upcoming biotech ever. They typically lease laboratories and research platforms to host all of their studies. The actual companies typically have no formalized offices.
Sir, I run a lot of my businesses out of PO boxes as well if they become to much of a hassle to drive. I can only assume a formalized address is even less necessary for a parent company.
No, I wager it'll be a while later than that. The subsidiary lawsuit is putting a massive thorn in progress from what Fuselier told me. He said they plan to update us on the audits Thursday assuming no setbacks.
I've made the email "iHub159@outlook.com" should anyone like to see proof. Just contact me and I'll get back with you when I can. I'm driving a bit today.
I'd be more than happy to email you email/call receipt screenshots.
I spoke to Fuselier earlier today after a several day round of phone tag, and he consented that I share with you everything we discussed (as best my chicken scratch sparks my memory).
I first asked about a R/S in which he talked about preferred shares deriving from the common share pool. In order to restructure his debts, he mentioned that clearly they will want something in return and preferred shares serve that purpose nicely. The 14C is geared to have those shares available should they be needed. I assume he was alluding to an A/S increase.
The CFO resignation was on good terms, and was explained to me as "Jace is a very high price individual." Simply, he was not within current budget parameters to keep as CFO, but he is still working closely with IFCR. They expect to see a replacement by July 15th.
I then inquired about the litigation asking if it was a significant issue. He responded that it was a significant issue, but they will not lose the case. He mentioned that of the ~28 lawsuits they had received (he couldn't remember the exact number) only one had made it through to affect them.
As for the audits, he mentioned at the parent level, they were about 90% done, and two of the three subsidiaries were 90% and 100% done respectively. I assume the third was the subsidiary regarding the litigation as he mentioned it was the main wrench in the engine for the audits.
He insisted bankruptcy was not a likely thing when I asked about it and concluded by saying when the numbers are this low, you can only go up. "We've seen the bottom. It's at trip 1's..."
He mentioned both him and Hank considered expiring their shares to aid, but they can only release 1% per quarter as an officer and that they were in this for the long haul. In addition, it would not paint a confident message.
All in all, he sounded very confident and experienced. I know he was traveling the past few days for acquisitions via our email contact. Overall sentiments seemed enduring -- he mentioned they were aiming for a PR today regarding the debt, and another Thursday regarding the audits.
Agreed. Look at where the company was before Fuselier came along and compare it to their current standing. They're clearly heading in a positive direction. The turnaround numbers are there.
What was your takeaway?
I would be too. With that many shares simply balancing on those financial audits. I'd be eager to see those through.
Interesting. So Fuselier has one more year to show the board he can handle the reins or they'll be in authority to institute some different parameters. Definitely motivation to dredge through the issues and come out on top.
Not sure if you specifically used the email you posted, but you're missing an e in Fuselier.
For real, it's such an awkward problem. That's like if Taco Bell sued Yum! -- that's not how this stuff works. I'm very eager to know what the lawsuit is about, because at the moment, I view this as a "toddler put dad in timeout" scenario.
I sent one as well yesterday. It wouldn't surprise me if he's occupied by his hedge fund. They've no doubt too a hit from the market conditions this week.
In our current state, the financials will no doubt reinforce the PPS dramatically. However we now have some new cards being played and as such, we have some new milestones added. Any positive news on the litigations will support us tremendously as will leveraging on our debts. We'll also see a strong bolstering in the price down the road when another acquisition is added, but I wager we're a distance from that until we see some of our recent issues cleared.
Would someone mind hooking me up with Fuselier's email? I thought I screenshot a message with it in, but I can't seem to find it.
Agreed. Hopefully the elaboration PR's will start to land and clear up some murky waters. All in all we're dealing with bad news, but the honesty earns some serious merit points.
I will say this would be done for if not for Fuselier holding a sizable position himself. You have to respect CEO's with skin in the game.
There will be much panic selling today. 1's will inevitably be seen, in my opinion. We'll see how the PR's play out in the coming days.
Valid points. I forgot about the bullet/elaboration precursor he gave us. All we can really do is sell or hold in lieu of the ground the CEO has made. We'll obviously see some aggressive selling when the markets open. Time will tell if there's anything here marketable for shareholders in the coming month or two.
Rationale?
I agree. The 10-K is what I'm more interested in. Beyond the "we're moving forward" scope of things, I don't really care about the audits of 2013 and 2014.
My milestones are the 10-K, any quarterlies, debt reduction, and any bonuses along the way (acquisition? Buyback? Unexpected profits?).
I'd have to vote yes, myself. I have strong faith in the June 30th announcement, but I believe the focus on activity prior to that point coupled with being one of the most read boards is painting a rough picture for outsiders not interested enough to read deeply.
911 at 3's like 20 minutes ago; always a good sign if legitimate!
Too many shareholders are getting caught up on the email news. The 10-K is all shareholders should be targeting in terms of making strong profits.
If you bought three days ago and are frustrated news didn't land, I would highly suggest revisiting your trading philosophy.
We know the company is turning some strong profits compared to their PPS, and they're making strong ground on all their weak points. Does that really sound like a strong sell to you?
I've seen mention of the idea on here, but from what I understand it's never been pitched or discussed by anyone at the head of the company.
Personally I'm eager to hear what financial shape they're in soon. We can extrapolate a lot more feasibility for different shareholder options (I.e. Buybacks, acquisitions, debt clearance, litigation aggression). Pending how much net liquidity they have in their coffers, we can better gauge what would be a more appropriate direction.
It's due June 30th unless they post an NT.
By the end of this year $0.015-$0.05 are the best realistic guesses I have. Five is pushing some limits, but can realistically be hit if the executives play their cards right. $0.10+ is a pipedream in my opinion. Share structure would have to be positively augmented, and with finances being where they are, I don't see that occurring by the close of this year.
We'll know more after we see the market reactions on the 10-K release.
No problem. Honestly, I feel like the board should consider focusing on more of the long-term goals of the company (of which there are many). It will be difficult to facilitate a climb up to one cent or beyond without having ready information and incentive to traders who discover/buy in at those prices. Without such, not only will unloading be that much more of a hassle at those prices, but we'll also not see stabilization in those regions.
We have several triggers here: the '13 and '14 audits, the 10-K showing the corporate milestones and growth, an eventual acquisition, the $50m projection for '16 FY, and the clearance of their debt are just a few exciting points to look forward to. This is an extremely undervalued company with solid management and transparency.
Oh, no doubt double (or more) that from what I'm seeing on different readings.
My point was it'd be bold to expect this company to touch $0.80 when factoring in the heavy dilution.
Still very fair projections for the company. I'm hoping the best for us all!
Agreed. If they're operating on 716,000,000 OS now, dividing that by th OS of 2011 (like 31,000,000) gives us a balance ratio of 23.
So $0.81/23 would equal around $0.035. Which would be today's equivalent to the ~$0.80 share price after dilution.
Close of this year could still touch $0.05-$0.10 if cards were played right. The withdrawal from the acquisition means only that they have the money to make another.
Assuming the accuracy of the Linkedin posted on here, the CEO projects $50m in revenues for 2016 FY.
Long-term your focus will be future revenues (projected $50m 2016FY), future acquisitions, and the announcement of all debt being relieved.
A/S I have no idea, but for the O/S just divide the market cap by the share price. It comes out to something like: ~716,332,500.
If so, it would show up in the market cap unless there's some unique OTC rule I'm unaware of.
Your market cap is simply your OS times your current PPS, so you can reverse that "formula" to extract your OS, yes sir.
My OS count comes out to:
$286,533.00 (market value at 4's)
/$0.0004
= 716,332,500 outstanding shares
This number directly correlates with numbers from previous SEC filings.
Enterprise value straight into market cap would yield a PPS of:
$10,000,000.00 (enterprise value)
/$286,533.00 (market value at 4's)
= 34.89 times the current PPS
$0.0004
x 34.89
= $0.0139 PPS equated to to enterprise valuation
This could act as a stabilized correction target looking forward.
Enterprise value from my understanding is a little more abstract as it factors in intangible assets and goodwill.
My OS count comes out to:
$286,533.00 (market value)
/$0.0004 (PPS)
= 716,332,500 outstanding shares
A nice round number, and much lower than many projections on here. AND in tandem with previous SEC reports.
Enterprise value straight into market cap would yield us a PPS of:
$10,000,000.00 (enterprise value)
/286,533 (market value)
= 34.89 times current PPS
$0.0004
x 34.89
= $0.0139 PPS equated to enterprise valuation
Indeed. I leveraged out on the $0.16 speculation climb. Assets are starting to vanish to other companies. A very dangerous sign.