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RBCC rumored to be a new topic on Anderson Cooper's RidicuList for the silliest claims by a company pretending to be a bioscience company.....
The Company cannot possibly compete alongside companies such as Bristol Myers Squibb Co., Biogen Idec Inc., Abbott Laboratories, and Amgen Inc. - simply because the company has no products, no expertise, no experience, and no cash.
The company has a corporate headquarters in a strip mall at 495 Grand Blvd., Suite 206, Miramar Beach, Florida. This is a virtual office/phone bank shared with a number of other businesses, including sister companies ASCC and FTTN. The company is the creation of Kathleen Delaney, Robert Federowicz, and the late JT Cloud (ref. beneficial ownership is Glendive Investments - a Polish offshore entity created by Federowicz and Cloud). Delaney, Cloud, Cindy Morrissey (Kathleen's sister), Federowicz (his sister was married to JT) have a long a sordid history of running penny stock scams - several of which have been summarily shut down by the SEC - including: EHSI, EVSO, ONYX, GSLO, GAEC, and others:
http://www.sec.gov/news/press/2011/2011-120.htm
http://www.sec.gov/litigation/suspensions/2012/34-66262-o.pdf
http://www.sec.gov/litigation/suspensions/2009/34-60410.pdf
RBCC's financials show that it has a Fish Farm business which makes a modest return (net ~$30k per year) selling coral and other fish accessories. RBCC's bioscience division is pure fantasy at the moment - they have made announcements of buying up to a 5% equity stake in privately held n3D. Their press releases call this a "joint venture", but there is no revenue (or cost sharing) that has been made public. Despite having an agreement in place for almost a year, the alleged equity stake has yet to show up in the financials. RBCC further states that they have a pending JV with AMBS - this has been going on for months without any results. Patrick Brown, RBCC's successor to Cindy Morrissey, has no experience in the bioscience industry.
WHY WOULD ONE INVEST IN RAINBOW BIOSCIENCES (OTCBB: RBCC)?
-RBCC has CLAIMED to acquired a new equity interest in Nano3D Biosciences, Inc. (n3D) - yet the financials say otherwise.
-n3D's nanoparticle technology is claimed that it could completely revolutionize cell research - and RBCC falsely states in its press releases that it has a Joint Venture - which would imply sharing of revenues - none of which is true as there is no such JV indicated in the financials.
-RBCC is NOT spearheading ANY innovative scientific and medical breakthroughs. It has NO bioscience assets, NO R&D budget, NO employees with any bioscience experience and has NO revenues in the $84.6 billion global biotech industry.
-U.S. biotech companies raised $25 billion in 2010--a 15-percent jump over the previous year's investment total, according to Ernst & Young. RBCC has ZERO bioscience revenues and ZERO JV's or deals completed.
-RBCC is NOT joining the ranks of bioscience companies like Puma-a company that recently announced a private placement of 14.7 million shares of its common stock to investors, resulting in proceeds of $55 million because it simply does NOT have the MONEY, ASSETS, EXPERTISE, KNOWLEDGE, OR CAPABILITY TO EXECUTE.
Ole' Federowicz got himself a still for moonshine - ain't that grand?! He also got himself a new wholly owned subsidiary to distribute the hooch - wonder if he has a liquor or distributor license for this new subsidiary.......
Wow - $50,000 compensation - that is WAY better than your competitors (WallStreetSurfers) - congrats. Wonder how much dilution we are going to see with RBCC to pay that bill....
QS - welcome back for another round with RBCC - please update your disclaimer showing your compensation.
lorena - the company has a corporate headquarters in a strip mall at 495 Grand Blvd., Suite 206, Miramar Beach, Florida. This is a virtual office/phone bank shared with a number of other businesses, including sister companies ASCC and FTTN. The company is the creation of Kathleen Delaney, Robert Federowicz, and the late JT Cloud (ref. beneficial ownership is Glendive Investments - a Polish offshore entity created by Federowicz and Cloud). Delaney, Cloud, Cindy Morrissey (Kathleen's sister), Federowicz (his sister was married to JT) have a long a sordid history of running penny stock scams - several of which have been summarily shut down by the SEC - including: EHSI, EVSO, ONYX, GSLO, GAEC, and others:
http://www.sec.gov/news/press/2011/2011-120.htm
http://www.sec.gov/litigation/suspensions/2012/34-66262-o.pdf
http://www.sec.gov/litigation/suspensions/2009/34-60410.pdf
RBCC's financials show that it has a Fish Farm business which makes a modest return (net ~$30k per year) selling coral and other fish accessories. RBCC's bioscience division is pure fantasy at the moment - they have made announcements of buying up to a 5% equity stake in privately held n3D. Their press releases call this a "joint venture", but there is no revenue (or cost sharing) that has been made public. Despite having an agreement in place for almost a year, the alleged equity stake has yet to show up in the financials. RBCC further states that they have a pending JV with AMBS - this has been going on for months without any results. Patrick Brown, RBCC's successor to Cindy Morrissey, has no experience in the bioscience industry.
Comments on the "news" release:
1. RBCC announces yet another "soon to be" joint venture with a yet to be named unknown privately held drug delivery company. The fact of the matter is that RBCC has yet to deliver on its first "joint venture" with AMBS announced months ago. Furthermore, it claims to have a joint venture with n3D when in fact it does not. This is just "more of the same" from Patrick Brown using a timed press release to coincide with the paid pump ongoing this week.
2. RBCC claims in the release to "help develop and market a revolutionary, sustained-release drug delivery platform". "Help develop and market"? How? RBCC has little to no cash and has absolutely no experience in the bioscience field. Once this unknown privately held drug delivery company scratches the surface on RBCC, it will be interesting to see what sort of "joint venture" evolves - if at all.
3. RBCC claims to hope to "sign a joint venture agreement to begin getting the new technology into doctors’ hands in the next few weeks" - really? That would be a change to actually execute an agreement!
4. How does RBCC intend to pay for the costs associated with this proposed Joint Venture? It is already obligated to purchase an equity stake in n3D with $5000 per week until the $250k is paid off. The Fish Farm division is only bringing in about $8000 per quarter in net revenues and the piggy bank is nearly empty with only $17k in cash. With a G&A burn rate of $813k and an interest expense burn rate of $206k over 9 months - the only option is to create some serious dilution to pay the bills.
That's it? No response to the facts posted? Or does this post get deleted for asking for the truth?
What happened today? How come the increased chatter resulted in lower trading volume and lower price?
Other questions remaining:
1. Why does RBCC call the proposed equity investment in n3D a "Joint Venture" when it is not?
2. Why has the AMBS LOI dragged on for several months with no action?
3. Why does RBCC continue to tout that it is working on new innovations and research in the bioscience field when it has no such plans or budget?
4. Why does RBCC state that it has an equity position in n3D when in fact the financials show otherwise?
5. Why do the Board moderators not delete the excessive spam being flooded on this board?
DD on OBJE from Hotstocked:
http://www.hotstocked.com/article/45802/damn-good-penny-picks-engaged-to-pump-obj.html
In a recent letter to shareholders, Paul Watson, CEO of OBJ Enterprises, Inc. (OTC:OBJE, OBJE message board), f/k/a Obscene Jeans Corp., rendered 2012 ‘the best year ever', while expecting 2013 to be even more successful. Frankly, these bold claims do not exactly resonate with reality. So, if you hold a stake thus unattractive, you have no other option but to initiate a paid promotional campaign hoping to artificially ramp up the value of the stake. This is exactly the case with OBJE right now.
As it seems, the stock of OBJ Enterprises is ‘the new top-secret gem' of promoters Damn Good Penny Picks. Of course, the latter aren't flattering the stock for free. Rather, they have been compensated $35 thousand by third party EAG Group to paint a rosy picture of OBJE. In reality, however, there is more to it than meets the eye.
For a start, OBJE is a failed distributor of women's apparel, which is why the company shifted its focus on the digital gaming industry through a JV agreement last May. Unfortunately, OBJE never took off. By Nov. 30, 2012, the company still had not generated any revenue and its sole assets were comprised of the $4,000 on its bank account. As for the relatively high current price of $1.05, it is a direct result of a 1-for-40 reverse split executed last November.
Fundamentally speaking, OBJE's activities for the last four quarters on record do not appear to have borne any fruit. What we have got here is zero expenses for R & D, an average quarterly payroll of $70 thousand, as well as a net loss of $160 thousand per quarter. What is more, the company's total number of issued and outstanding shares currently amounts to some 7 million, which barely covers 7% of the total authorized stock. Combined with the lack of fresh capital, this exposes shareholders to a huge risk of dilution every time OBJE has to pay off a portion of its debt.
In a nutshell, this is what you would get if you invest your money into OBJE. Sure, the company might eventually beat the odds and make a breakthrough with a killer mobile app, yet such a scenario is heavily dependent upon too many variables for the time being.
DD on RBCC from Hotstocked:
http://www.hotstocked.com/article/46402/wallstreetsurfers-have-the-cure-for-rainbow-coral.html
If the news and the paid promoters are to be trusted, things are really heating up in Rainbow Coral Corp (OTC:RBCC, RBCC message board)'s headquarters. Not more than a couple of weeks ago they were pumped by Quality Stocks. That didn't really help boost the prices and so they are now featured in another promotion. This time the pumpers that have taken on RBCC are represented by WallStreetSurfers through their newsletter and a host of other people roaming and flooding the investors' forums all over the Internet. Should you trust them, though?
Let's start with the basics: RBCC are a biomedical company and, as such, they are developing a technology that sounds really exciting but, in fact, only people with abnormally large brains can understand. During the last couple of weeks, RBCC have been quite desperate to tell us that there are a lot of developments around their company. The headlines are plenty and they all sound so optimistic that they could make even the grumpiest of investors think about it.
It's not all about the press-releases, though. The previous pump for RBCC started on February 10 and Quality Stocks' disclaimer states that RBCC are going to pay them $50 thousand for the promotional effort, which we find extremely weird. Why? Well, just nine days after we received Quality Stocks' email, RBCC decided to publish their latest 10-Q which covers the period before December 31, 2012. Looking through the report we find that the $50 thousand compensation exceeds their bank account balance by exactly $32,925. The rest of the figures don't inspire any confidence, either:
•current assets: $46 thousand
•current liabilities: $133 thousand
•revenue: $24 thousand
•net loss: $182 thousand
This makes us wonder: "Shouldn't they be more interested in getting the company back on its feet rather than spending money for paid pumps?". Apparently they don't think so. A few days after the first promotion, they issued a press-release in which they informed us that they have hired a new investor relations group that is supposed to help them maintain a closer connection with shareholders and potential investors. The thing that strikes us is that they don't want to tell is which is the IR firm in question. Another thing that raised our eyebrows is the fact that the third party that paid WallStreetSurfers for today's pump is an investor relations group called Mission IR. Whether this is a coincidence or not, we can't be sure.
Of course, improving communication with investors and shareholders is a good idea, although, we're struggling to see why, of all the ways to do it, they have gone for the paid pumpers. What disturbs us more, however, is the fact that the more urgent issues are not addressed.
The press-releases keep telling us about joint ventures and acquiring interests in companies that develop some magical serum that will treat cancer one day, but the financial report, as recent as it is, states absolutely nothing about contracts being signed, money being paid or any sort of partnerships being formed. At the same time, shares are being issued as compensation for all sorts of services. During the second half of 2012, for example nearly 3.5 million shares saw the light of day and the number of currently outstanding convertible notes is big enough to make shareholders tremble with fear.
All in all, apart from the overly optimistic emails and headlines, RBCC have very little to show in terms of actual operations. The way the last pump ended further increases the risk and puts additional question marks around their credibility.
"Rainbow BioSciences will develop new medical and research technology innovations" - without cash, assets, or any experience in the bioscience field - please do explain EXACTLY how they intend to accomplish this lofty goal?
In what form is that deficit? - answer: working capital = Current assets - current liabilities. If a company's current assets do not exceed its current liabilities, then it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy
Current assets are the most liquid of a company's assets, meaning they are cash or can be quickly converted to cash. In this case, QUAN's cash is extremely low - $1588. It does not include longer term assets like the biodiesel refinery that is not quickly convertable to cash.
Current liabilities are any obligations due within one year. In QUAN's case these liabilities include:
$43k to accounts payable and expenses
$232k in convertible debt
$1153k in short term loans
It does not include other longer term notes,convertables which tally up to another $3.3 million.
Clearly, in QUAN's case, this working capital deficit is a significant issue since it has no meaningful readily available assets to pay off its short term liabilities - this will result in either: a) bankruptcy or b) more (massive) dilution to pay off the loans and convertible debt.
"Cash at hand ~ At least it's positive unlike other companies I have seen" - let me explain it to you s l o w l y... the company has a working capital deficit of $1,426,370 . Having $1588 in cash on hand and perhaps some Happy Meal Vouchers, does not make them a viable entity in the Robotics field.
Nilbud - instead of attacking the messenger, how about responding to the content of the message which are these facts:
The company share price has dropped from a whopping post reverse split adjusted high of $63.00/share about a year ago to today's price of about $0.36 - a drop of 99.4%. Touting a little over 1% increase in one day is nothing to get excited about.
During the same period it issued 10.5 million more shares - an increase of 1974%.
Of these shares issued, the company only received additional paid in capital of $175k (or about $0.017/share) - shelling out shares at such a steep discount to current market value is financially irresponsible in my opinion.
The company has not made good on its publically stated promise of taking an equity stake in n3D. In fact they have continued to mischaracterize the equity stake as a "joint venture" - which would imply they will receive a share of the revenues in n3D.
Furthermore, the company continues to hype it's LOI with AMBS - an alleged deal that has dragged on for months without any results.
More troubling than the disasterous share price and exploding amount of outstanding shares, is the $542k paid for compensation during the first 9 months of fiscal 2012 - the company has 2 employees - does anyone think paying this kind of money for a complete lack of results as being reasonable??
"Green once again very strong day for this one!!!" - congratulations on your paltry 1.27% gain for the day - this gain is against a backdrop of a company that has dropped from a whopping post split adjusted high of $63.00/share about a year ago to today's price of $0.36 - a drop of close to lose virtually 100% of its value (99.4%), while simultaneously issuing 10.5 million more shares over the same time period - an increase of 1974% to pollute/dilute any remaining bag holders. Once could argue that a growing company needs to issue shares to raise cash, but a quick look at the financials show that there were 10.3 million+ shares issued for just $175k (or about $0.017/share) - clearly this is management not showing any reasonable degree of fidicuary responsibility.
Meanwhile, it pays for one day pumps like what we saw today with what little remaining cash they have instead of trying to finalize the deal that has still yet to happen with AMBS as well as getting that equity stake in n3D. I suppose being just a 2 man operation one should give the company a little slack - but after looking at the $542k paid for compensation during the first 9 months of fiscal 2012 does not instill much confidence in their pay for performance.
Perhaps the best advice comes from the company which states: "These (negative cash flow) matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern"....enuf said for sure....
DD on RBCC and answers to other questions posted by the IRP's on this board:
Correction - RBCC is a Coral Farm not a Fish Farm
With respect to AMBS - RBCC has certainly milked the press releases alleging to be a partner with AMBS - none of which has come true. AMBS is incredibly naive to think RBCC could provide them with any funding.
RBCC is NOT a bio-tech company - no management experience, no bio-tech assets, nothing - nada - zilch...
This is nothing more than a one man sham to pump the stock price for unsuspecting dupes.
The claim that as a young OTC company that they are actually producing revenue is true - the company earned a gross profit of $23k during the 9 months ending Dec. 31, 2012. However, this was offset by $813k of G&A - which begs the question, what has shareholders gained in spending $813k on a division which has 2 employees, no biotech assets, and nothing to show for an alleged equity interest in n3D??
also one needs to dig into Glendive Investments - beneficial ownership - a Polish offshore account to hide Robert Federowicz involvement with this gem...
"In partnering with n3D,$RBCC is poised for explosive growth in the biotech market" - there is no such partnering established - read the latest financials.
RBCC has acquired a new equity interest in Nano3D Biosciences, Inc. (n3D). - not according to their financials. At best they have invested a couple hundred dollars equating to a 0.0018% equity stake.
n3D's nanoparticle technology could completely revolutionize cell research - RBCC has no agreement to profit in the unlikely event n3D's technology ever comes to fruition.
RBCC is spearheading the most innovative scientific and medical breakthroughs - RBCC is doing NOTHING to spearhead ANYTHING - name ONE?!
U.S. biotech companies raised $25 billion in 2010 - RBCC is a fish farm company - it has NO biotech assets, NO management experience, nada, zilch...
RBCC is joining the ranks of bioscience companies like... - RBCC is NOT a bioscience company, QUIT spamming the board!
Regarding your DD, here is some more information to consider when evaluating their chances of success this time around:
Cash on hand - $1,588
Assets - $1.44 million tied up in a mothballed biodiesel plant that has no salvage value and is the subject of questionable ownership (reference SEC suspended company GAEC claim to same)
Operating expenses (G&A and depreciation) - about $178k per quarter
Cumulative losses since re-entering the development stage of $27,555,822 and a working capital deficit of $1,426,370
Pending litigation with Emtel
A ton of toxic convertible debt waiting to be exercised.
Employees = 1 (Robert Federowicz - a man with ZERO robotics experience)
Robotic assets = $0
yes - like the SEC.... http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84262065
955 - thanks for the heads up. Clearly you will not get any other response from the paid IRP's spamming this board with useless information. This pump is brought to you by Eddie and Carolyn Austin: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84262065
Fair enough - thanks.
What did your DD show on Federowicz' past involvement with other SEC suspended companies?
The latest 10Q has been released which shows yet again no equity investment in N3D. Meanwhile the share count continues to grow to 11.4 million outstanding - an increase of 2.3 million - a 24+% increase since the last quarterly statement.
"I'm looking to see how this gaming initiative plays out." - really? What we are really watching is yet another Kathleen Delaney/Cindy Morrissey/Robert Federowicz train wreck...
Based on their past failed history of plugging other "apps" for medical innovations, Gulf Oil spills, etc, I would not put much hope in this latest "free for play" game app to generate much (if any) revenues - not exactly a brilliant plan for shareholders, but on the other hand, if you own convertible toxic shares, who cares, right?
200+ posts in 3 hours - time to take a break from the professional spamming ang go back to post #10 for real DD
QS - "RBCC’s biotech division, has acquired a high interest in the Bio-Assembler" - does 0.008% (or even the eventual 5% if they pay for it) count as a "high interest"?
Today's press release states: "The company owns a working interest in a production well in Alabama, with plans to drill a second in Louisiana before the end of the year" - Huh?!? - I thought the Louisiana prospect was supposed to have been planned to begin drilling at the end of LAST year (2012) and was ready to rig up within "a couple weeks" back in mid-December?: http://finance.yahoo.com/news/fttn-louisiana-well-clears-faa-100000472.html
QS - are you the unknown and yet to be named new Investor Relations company? If so, will you be receiving more than the $50,000 over 90 days of promotion mentioned in your disclaimer?
Did you have a hand in writing the newest press release? If so congratulations on deleting the n3D "joint venture" reference.
A wrap on shooting after just six days of filming? Seriously? Wow - talk about low budget! Wonder how the product placement is going for their non-existent product.....
DOMK = Don't Own More Krap....
That's it? Your source of perpetuating the falsehood of RBCC's alleged JV is using RBCC's own press release? For $50,000 you should have done a little more homework - try using RBCC's latest SEC filings to get the true story of this joint venture that isn't a joint venture:
Hint - page 10 Overview: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8926868
Here is the only mention of n3D in the filings - there is no Joint Venture:
On March 13, 2012, we entered into a stock purchase agreement (“N3D Stock Purchase Agreement”) with Nano3D Biosciences, Inc. (“N3D”), a Texas corporation that has developed a unique concept in three dimensional cell research tools. Under the terms of the N3D Stock Purchase Agreement, we have agreed to acquire 604 shares of common stock of N3D, representing approximately 5% of the outstanding shares on the date of the agreement, for a price of $413.62. The total purchase price of $249,826 will be paid by making weekly payments of $5,000 until fully paid. We may discontinue payment of the purchase price at any time by providing written notice to N3D. This would result in our owning fewer than 604 shares. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.
In fact - no where in the financials will you find any reference to any $5000 weekly subsequent payments that would have occurred after execution of the Stock Purchase Agreement (March 13, 2012) through the applicable filing period (September 30, 2012). One would have expected to have seen some progress being made towards this equity investment (i.e. about 26 weekly payments x $5000/week). The finanicials make no mention of them opting out of their purchase obligation.
Even if timely payments have been made to acquire an equity stake in N3D - this does not constitute a Joint Venture. By definition, a Joint Venture is an Agreement whereby each party shares in the revenue (and costs) for a specific deliverable (presumably the N3D technology). RBCC has no such stated arrangement.
This leads to one of two conclusions:
1. The Company has lied - putting out numerous false and misleading press releases about a Joint Venture which does not exist, or;
2. The Company has omitted material facts in its financial filings concerning the alleged Joint Venture - including omission of any funds used to support the JV.
Investment Highlights
-RBCC has acquired a new equity interest in Nano3D Biosciences, Inc. (n3D). - yes, as stated earlier, 0.0081% with no promise of ever getting a payout, nor the cash flow to purchase the remaining equity interest (up to 5%) in n3D.
-n3D's nanoparticle technology could completely revolutionize cell research. - sure, maybe decades from now....
-RBCC is spearheading the most innovative scientific and medical breakthroughs in the $84.6 billion global biotech industry. - prove it - how?
-U.S. biotech companies raised $25 billion in 2010--a 15-percent jump over the previous year's investment total, according to Ernst & Young. - none of which is even relevant to RBCC.
-RBCC is joining the ranks of bioscience companies like Puma - a company that recently announced a private placement of 14.7 million shares of its common stock to investors, resulting in proceeds of $55 million. - huh? how? with no bio-science assets, no cash, and no employees with relevant experience, please do explain?!
You forgot to include a reference to the 52 week high of $34.60 and the freefall to currect level of about $0.40!!
QS - more misstatements to correct:
"...and we couldn’t be more excited to help market it to elite laboratories and researchers around the globe.” - now that would actually be funny to see Patrick Brown try to market this - I wonder if he can even pronounce the words "magnetic levitation technology", let alone, know what it is....
"Rainbow BioSciences, RBCC’s biotech division, signed a joint venture agreement with n3D last year to help develop and market the Bio-Assembler." - no such JV exists - please read the 10K and latest 10Q
QS - please correct your misstatements:
"Rainbow BioSciences, is making some big moves in the sector by joint venturing with hot properties that have short-term marketability and commercialization potential" - RBCC has no such joint ventures.
"RBCC is a tip-of-the-spear company pioneering new medical territory in a global biotech market" - RBCC is not a pioneer. In fact the sole employee has no experience in this field. His only experience stated in the 10K is in renewable energy projects.
"A similar JV framework was arrived at previously for AMBS’s Parkinson’s disease and traumatic brain/nervous system injury diagnostic offering, NuroPro..." - RBCC has no such JV.
"The AMBS relationship is a perfect example of the cunning strategic savvy already demonstrated by RBCC..." - no such relationship has been formed yet.
"San Francisco-based biotech player RBCC will be making the rounds at the upcoming Biotech Showcase™ 2013 and has an established track-record of mining such venues..." - RBCC is not San Francisco based, nor do they have ANY track record of mining such venues. RBCC operates out of a strip mall with virtual office space in Miramar, Florida.
"Another example of the relentless drive by RBCC to seek out new medical and research technology innovations is the extensive work with JV partner Nano3D Biosciences (n3D)..." - RBCC has not provided any technical work to n3D and is NOT a JV partner with them. RBCC has contributed a measley $413.62 (out of $249,826 total committed) towards eventually purchasing up to 5% of n3D's privately held company.
"...investors would be wise to follow the wider industry’s lead in anticipating explosive growth from RBCC, as the company has quickly put together a considerable tech footprint that stretches across entire sectors" - investors should take note that RBCC has no such footprint in any sector.
"RBCC’s equity interest gives shareholders a de-risked vector for short-term viable returns..." - ooooh, such fancy terms "de-risked vector"! Unfortunately, the equity interest in n3D only amounts to a 0.008% interest to date.
From Quality Stocks disclaimer website: QS is receiving $50,000 to promote and advertise RBCC for a period of 90 days.
QS correctly notes that the joint venture with AMBS is "pending". In fact this joint venture has been pending for months on end, yet RBCC continues to put out press releases as if it were already a done deal - just like it has done on N3D.
QS - can you please spare us the spamming campaign like you did on DOMK where you and your "investor awareness" team flooded the message board with several hundred posts over a period of just a few days?
Math correction:
So let's take the example that they produce 223 bbls per day constant over the next year (ignoring the most recent 44% decline rate) - at current oil prices, that would equate to about 81,000 bbls valued at about $7.3 million. However, since FTTN's interest in the well is only 1%, that would only be $73k. This would not even cover FTTN's most recent G&A costs ($945k) - this is before contributing their share of drilling and operating costs for the well! In fact, the company does not have cash to support any operations without having an obscene amount of dilution occurring - they currently have only $1,359 in cash in the piggy bank!
New financial filing by FTTN:
On February 1, 2013, we concluded that the Company's financial statements for the year ended September 30, 2012 should no longer be relied upon and will be restated.
The financial statements as originally filed did not include the report of independent registered public accounting firm and the unaudited supplemental oil and gas disclosures. The restated financial statements will include these items. In addition, due to a typographical error, long-term liabilities including convertible notes payable and accrued interest payable had been omitted from the balance sheet as originally filed. These items are included on the restated balance sheet. The financial statements as of and for the year ended September 30, 2012 are being restated to recognize imputed interest expense on non-interest bearing advances, to recognize asset retirement obligation related to a drilled oil well and to properly show proved versus unproved oil and gas property.
The effect of the restatement on the balance sheet as of September 30, 2012, is to increase proved oil and gas property by $128,000 and to decrease unproved oil and gas property by $127,500. In addition, it will increase convertible notes payable by $20,519; accrued interest payable by $10,120; and asset retirement obligation by $500.
The effect of the restatement on the statement of operations for the year ended September 30, 2012 will be to increase both interest expense and the net loss by $20,481.
The Company expects to file restated financial statements for the year ended September 30, 2012 as soon as practicable.
The Company discussed the decision to restate the Company's financial statements for the year ended September 30, 2012 with the Company's independent registered public accounting firm, M&K CPAS
************
Comment: combined proved and unproved net reserves = $253.5k....well short of the $80 million boasted in the latest press release!
Un-BERING-able.....