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This is what happens when you have innovative technology and a non-creative use for it. People want to hold their cards in their wallets and their hands. Not an all in one unit. Its psychological for the end user. You feel it, you can control it. Look at IWAL. It used a metal case to store your physical cards in and sold for $499.00. Priced itself way out of the market and now they don't even manufacture it anymore. ZWIPE and SMART-METRIC are both utilizing biometrics right on a plastic card. Yea, you will still have each card in your wallet, but each card has its own biometric authentication for use. Then go right to the fingerprint PDA's, Apples and Samsungs POS apps that use the phones built in biometrics to process transactions. Most people already carry their phones with them, and they already have their card info loaded. This is NOT going to work. And I have a LOT of experience doing this.
CEO put out a release that there will be a big announcement introducing the CARD to "journalists" at the end of the month. That really implies that they have a booth at the show, are exhibiting and have set up a "presser" to introduce the card to "journalists". Half truths my friends, just enough truth to skirt the law.
So to recap - RxDrugSAFE now available at CVS online and will be in stores before the end of the year.
The SafeDOSE product has been submitted to the FDA and the company is making an application to have the Rx FieldLOCK on the GSA schedule, and both the Rx DrugSAFE and Rx FieldLOCK are stocked and ready to be shipped to fulfill orders. ALL within 2 weeks. 2 Frick'n weeks!!!!
Oh and shot commercials too!
I am getting excited now, and I don't get excited very easily. New padlock, past relationship with Master Lock, and now Assa Abloy acknowledging biometrics is the future and buying up complimentary companies over the least 3 years?
HOW ABOUT THAT GSA SCHEDULE! It not only shows smarts to get the government to buy this product, but that there is NO DOUBT now she is focusing on SALES! Looking forward to Q1 2016!
WOW, first a "GOING CONCERN" qualification by the companies auditors, then SERIOUS CONVERTIBLE DILUTION COMING!
WOW - GOING CONCERN NOTICE in LAST Q
Going Concern
As shown in the accompanying financial statements, the Company has an accumulated deficit of $14,238,150 and negative working capital of $431,540 as of June 30, 2015. Because of the Company’s continuing losses, the working capital deficiency, the uncertainty of future revenue, the Company’s low stock price and the absence of a trading market in its common stock, and the ability of the Company to raise funds in equity market or from lenders is severely impaired. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. Although the Company may seek to raise funds and to obtain third party funding for litigation to enforce its intellectual property rights, the availability of such funds is uncertain. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
DEFINITION OF DEATH SPIRAL FUNDING
This is ON TOPIC as the 8K has announced the reason why this incompetent management increased the A/S
This type of loan is undertaken by companies that desperately need cash. It is called a death spiral because companies' stocks often plunge drastically after they take on these types of loans. It is important to note that death spirals often allow buyers to convert the bonds into shares at a fixed conversion ratio in which the buyer has a large premium.
For example, a bond with a face value of $1,000 may have a convertible value of $1,500, which means that a bondholder will receive $1,500 dollars worth of equity for giving up the $1,000 bond.
However, upon a conversion, more shares are created, which dilutes the share price. This drop in price may cause more bond holders to convert, because the lower share price means that they will be receiving more shares. Any further conversions will cause more price drops as the supply of shares increases, causing the process to repeat itself as the stock's price spirals downward.
Read more: Death Spiral Definition | Investopedia http://www.investopedia.com/terms/d/deathspiral.asp#ixzz3ptNMVJlm
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The 8K itself is a warning that management has SOLD OUT its shareholders. The only reason they increased the A/S is so they can give more to the note holders who will mercilessly slam down this stock to make back their money. Sheer incompetence
Thats just how convertible notes are written. It is couched as a loan, because there is a promissory note, but it is also a stock purchase so the note holder gets tack-back provisions and will have "AGED" stock at the time of conversion. That how it works on the OTC. So the company has reserve share requirements in their documents in order to have enough supply of stock available when those notes convert. Usually 5 - 7 times, depending on the greed of the note holder. And when they do convert, especially that much, even assuming they stay under the 4.99%, , it will be lights out for an underperforming company.
And just so you know - its called Death Spiral Funding. Picture a fighter jet that lost its only engine. In this case, the holder converts up to 4.99% of the outstanding FLOAT. Not A/S. This way they do not have to report sales. They convert at a discount to market, say 35%. So the stock is trading at a dollar, they get 4.99% of the outstanding shares at .65 cents then WHAM! Sell out those shares, slamming down the stock price to say .50 a share. Then they convert another amount equal to 4.99% of the NEW FLOAT, which includes the shares they just sold - actually giving them even MORE shares than before at a 35% discount to .50 cents. Say now .30. Then Wham!!!! Slam down the market by selling even more. Now down to .30 a share, and they repeat until they are out. Its just how it works so BEWARE.
Yes, the filings explained the serious dilution the reverse split has caused. It all stems from the 8K disclosure of the company not being able to meet the loan doc terms requirement of reserve shares. Management is at fault for not putting stop-gap measures in place, including considering the falling stock price affecting those ratchet provisions. This may affect shareholders negatively short and long term. Incompetence. Will be back in a week or two depending how things go.
We all got the email and agree that this POS will tank faster than the Titanic based on income tent management and doing bad deals - diluting shareholders. Will be back in a week or two depending how things go.
Its all about headroom here and dumping stock after the conversion. Typical OTC pump and dump. This is the most BORING company and fundamentally weak company I have ever seen on the OTC. Management are a bunch of idiots to think that such a dilution will save this POS. Hope it was worth the $250K.....and where did THAT go? Salaries? Car payments?
Really? NO WAY! They have NO HEADROOM on the reserve shares they are required to keep, so they are diluting the company to make sure enough stock is available on this POS so the notes can convert and dump this sorry POS down the drain. Yea, REAL COMPETENT management. ROFLMAO.
What a POS this company is. Incompetent management diluting ALL shareholders with monster split. No legitimate investment banker IR firm would touch this with a 10ft pole. Can't wait to start digging into this POS.
This announcement says NOTHING and I believe Trader_Rik is 150% correct. They paid to attend a TRADE SHOW - thats it.
Not sure what "releasing the card" actually means. Most of you have given this CEO WAY TOO much credit. I also have to believe that anyone involved in this company, including its IR firms is part of this cloak and dagger mystery. Its not a mystery to me, I looked at all of the filings, Press Releases and researched its "patents" - NOT biometric patents because they don't have any at ANY level.
This company had raised enough money to execute its plan, had they actually known what they were doing. IN theory, it sounds great, but things stand out to me - no contracts for manufacturing or investment in tooling, and basically, power management of the card to handle the processing and matching on the card itself in the form factor they claim to have "designed". using a swipe sensor is just plan wrong, they needed to use a capacitive sensor for static placement on the card. Swiping creates a whole bunch of other problems for consumers.
But there are so many ethical questions that need to be answered before this even gets out of the gate. Guess everyone here is willing to give CHAYA a free pass. Lets see how you feel in 3 days.
So now the company wants to go from a "luxury" product manufacturer to licensing its IP. I actually think thats the ONLY way this can go because this CEO, who has a track record in retail, but not consumer electronics retail, lost Mr. NG who is high up in Next Biometrics, but realizes now, not every good idea works. I wonder if the loss of Mr. NG also means that the NEXT agreement to purchase its sensors is also done. I actually liked the product and it does have an application, and Jack should just eat humble pie and contact Lorraine. As far as licensing its technology, that poses substantially new hurdles. If its truly unique, this is probably the right path for this company. Call Lorraine, Jack. She is the ONLY person who has sold 10's thousands of consumer biometrics products with $20M in sales and orders. I am sure you don't want to hear that but she is one of 3 people with this track record that could help you.
RXSF analysis based on Free_Nebula's IHUB page
1. The Stock has to trade reasonable volume daily - relative to its average
Stock has respectable trading volume.
2. Increasing revenue stream or better yet profitability.
Just started sales program so its ONLY an increasing revenue stream at this point
3. A strong product base with expansion potential - consumables a big plus
This goes without saying, serving billion dollar multiple sub markets.
4. Under 200m O/S - The Revenues/Earnings generated should be taken into account.
After the split, will only be 1.3M shares outstanding. 1st sale to government $50K
5. Insiders have to own shares
Already own 70% of outstanding
6. No dilution to line pockets - must be accretive)
Nope, none anymore
7. Previous history of success is important
Created the consumer biometric market, attracted and contracted big brand names like Master Lock, Honeywell, Genie, 10's of thousands of products sold through Home Depot, SEARS, Lowes, over $14M in sales in first year of sales, etc....
8. A Prime mover behind it or strong potential for buyout
only company applying this technology (protect by IP) in broad spectrum in multi billion dollar industry to resolve multi billion dollar problem.
9. Any Bloated float Stocks (In General) and those with share structures in the Billions are immediately disqualified
Yup - QUALIFIED!!!!
Now if only people believed in their own metrics!
They are called "partners" because McKesson and Cardinal Health STOCK products in their distribution warehouses to fulfill orders. They also engage directly in marketing the product to their customers - CVS, Walgreens, Rite Aid, etc..... Because they take an active role in the sales and marketing chain, and derive an additional financial benefit for that, they are for all intents and purposes "partners" in the sale of the product. The SafeDOSE and MyDOSE products are engineering, marketing, manufacturing and sales partnerships in the same sense as any company that improves another companies products with new technology under contract to do so. And in the medical profession, any relationship that is put together to further secure and preventing drug abuse and diversion are all considered "partnerships" for a common good.
Who do you think is providing product to CVS? Its obviously through McKesson, because thats how it works at the pharmacy level, and this product is being sold through CVS's pharmacy division. Thats how it works.
This is not even a worthy post to sticky. It should just provide the fact the company is doing a reverse split at 1 for 200 on or about November 9th and let investors due their own DD.
Thats an extremely short sighted analysis. I guess I wasn't very clear. I doubt they are uplifting any time soon after the split. So the price at the split is basically irrelevant to meeting that listing criteria right now. As long as its $2.00 for a 30 day period before the application, they are good. Its really going to be a function of a RACE to ACQUIRE stock post split, than whats happening now. Whats happening for the next 10 days can ONLY benefit short term holders. If there were 3 million shares in the public float after the R/S, I would be concerned. With about 100K in the actual float after the R/S, I'm already laughing.
I think bad MoJo is not planning all those things for AFTER the split. With just about 100K freely and actual trading shares after the split, I think the company's strategy is perfect. The way I see it, the company isn't filing an uplift application when the R/S happens, it will do it when it meets the requirements, which has a minimum of a $2.00 stock price. Even if this goes down to .0025, this will come out the next day with a .50 stock price and only 100K shares available in the market. I'm guessing this thing hits $10-$15 the first 2 weeks, maybe even higher after the split, but thats just my OPINION.
LOL, good one Hokie. I heard they turned down $1M buyout, and thats AFTER the stock was depressed with a market cap of less than $600K. So the 6 month plan of driving the stock down to our pressure on them to sell out didn't work. Did you see in the filings that they put their own money into this as well?
And don't forget putting up their own money as well.
This is going to be an interesting next 10 days. I'm expecting the bashing knob to be dialed up to 10 until the split is effective. I understand the company is ready for the split, but I am not sure what that actually means, but these are smart people and I believe them when they say they have a plan. We will be bidding goodbye to a certain few, and its been a challenge keeping certain "facts" in perspective. But the actual debate was fun....but alas...the game (jig) is over in a few days, so enjoy what you do best,....bash, flip, conceal the whole story, short, create selling panic, whatever.
4 similarly situated companies are sporting market caps over $25M with no revenues and only IP and they have been around much longer. 1 of them over 10 years and still no revenues. Its part of their game, and to them, its all a game. How to outsmart YOU. I have a feeling that the only new selling are the MM's playing the flip/short game. I think any real investor here understands that this isn't a short/flip play but are taking advantage of the "turbulence" anyway. Pretty soon they will close their eyes and go to sleep, and find another stock, such as PJET, MJMJ or others that they occasional visit to spread their paid wisdom.
Accumulating shares, turned down a $1M buy out offer, and THEY don't know something we do? LOL.
It's all good here. Once the r/s is official watch some of the real big boy MM appear on the bid. Then all of this negative background noise will disappear.
It's all good here. Once the r/s is official watch some of the real big boy MM appear on the bid. Then all of this negative background noise will disappear.
WOW, they really are coming out of the woodwork the last week before the split. "Driving my train.....high on cocaine........right MJMJ?"
They sold thousands when the company was private at $199.00. Now, at CVS - $129.00
Some people do not like to provide the whole picture. I think most people know that from not only the posts here, but on other boards as well. Wants to ignore HUGE brand name companies doing business with them, then and now. Doesn't seem to understand that these companies do not do business until the management, products, technology, everything checks out, especially a company like Fortune Bands that owns Master lock. Same goes for CVS, which by the way, carried its product in 2010 online when this company was private, and now, is obviously engaging in a much bigger program. Must have had same sell through results as Home Depot did with their last product. This team is putting the foundation in place, any smart business person would know that and actually see that. To think you can just go out and "sell" is a 1960's archaic way of thinking, especially these days.
I trust CVS, Master lock, Mckesson, etc..... to know whats best for them and their clients. Not some wannabe poster here on IHUB. You need the foundation in place in order to sell. We see management building the foundation. If you don't want to give them time, thats your choice. But stop skewing facts and details. Continue your personal vendetta somewhere else.
Hopefully we all will after the split.
Wonder what the news will look like AFTER the split. IMO, thats when it will really count. I don't think she is that reckless to put out news so close before the R/S to allow the day guys to flip, flop even more. Let's see who buys up the 250,000 float after the split.
I disagree. I think all that matters now is who has bought. If the company is right, and their plans work, the buyers who bought may be very happy afterwards.
No selling, means would-be sellers are holding. It will be a rough 2 weeks. Lots of continued game playing. More interested in seeing what happens after the battle.
Selling has stopped, for now. Maybe they are starting to get it.
WOW. All the public companies I know do not announce such silly things. Why is she trying to make it sound like a Secret Service meeting with the President? The "journalistic" path to contracts and sales is really throwing a lot of fodder at the wall and hope that something sticks. But, you you want, or need to believe that CHAYA is smarter than everyone (at least in playing shareholders she appears to be), then be my guest. A "journalist" presentation means less than nothing unless you are doing it with a BIG partner, such as VISA, MC or AE. Thats when you will get the media's attention. The ZWIPE card is already out there. They already grabbed the attention, and the did it with MC. Thats a real company with a real product that spent millions in engineering and developing a real program.
NONE - they just keep accumulating. All the 13D's and Form 4's filed in the last 30 days are ALL accumulations and purchases.
And for those screaming for sales.....jeez....give it a rest already. They JUST STARTED their marketing and sales programs, and that still takes time to develop, especially with an in-store program starting soon, filming the TV commercials, etc....... Don't expect to flip on sales this quarter. I recognize they have a long term growth plan they have put in place. Get off the swing if its moving to slow for you.
Yea, thats what I meant.