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Make no mistake, Tom Wilkinson is to blame!
I mean, seriously. Doesn't Wilkinson have a CPA? He can't be that dumb, right? So that means it must be intentional. Why? Incompetence? Self-destructive behavior? Does Wilkinson have a beef with Besser?
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If we are all out of money with no options, one really has to ask why the board would spend the last of its cash to buy back shares from MDLG.
We have bylaws?? Lol...
Wilkinson met with de la Garza. Does that count??
SMH...
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Isn't there something about an annual meeting in the corporate bylaws...
Sad, but true. That's spot on.
As a shareholder, I propose a change of leadership and then do a proper money raise. That would make the most sense. With respect to dilution, at least we got millions of shares back from de la Garza and the Carmel Trust!
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Since CipherLoc just reported the Q, we can see they are broke. They have 2 options: First, try to raise money. This will massively dilute all of us shareholders since the stock is in the toilet. The other problem is this: Who in their right mind would invest more money into a company with such a terrible track record of performance? The $17.20 million dollars from 30 months ago is gone and the Covid money is too based on their burn rate vs. cash as reported in Q. Why would investors give this worthless Board of Directors any more money to lose? It makes no sense.
The other option will result from the lack of success in raising new money (highly likely) and that is bankruptcy. The company right now is bankrupt, make no mistake about that. The liabilities are too great and the cash is all gone (bankrupt). Even if they had a big deal to announce, they have no cash to execute and mass dilution becomes the only possible option for survival. If this company had anything good to say, the CEO would have said it in his first 30 days as the new CEO. What can he say now? "Sorry but the 4 CEO's have all done their part mismanaging CipherLoc and we are finally out of money. We did our best but we will be filing bankruptcy today." And then the BOD will point fingers at MDLG but remember, there was almost $10 million in the bank account when Tom Wilkinson took over as Interim CEO and as COB. The BOD actually lost more of our money than MDLG. I'm sorry to tell you but this sad tale is finally coming to its end thanks mostly to MDLG, Carl Ranno, Joe Gangi, Dr. Carlson, Andrew Borene, and Tom Wilkinson.
In NewYork, we'd call this fuGazi, capital G!
FuGGedaboutit!
In response to: Microcap Woman
Does anyone think the Board of Directors followed their fiduciary responsibilities to us shareholders by paying off CEO's for CYA? Is paying $600k to these two crummy CEO's and leaving CipherLoc broke being a good board member looking out for us shareholders? Was approving a $18,000 per month lease for several years in DC for Borene and his team while the company had no revenues and was burning cash fast being a good fiduciary? Was spending millions in legal fee's just to pay a CEO $400k who was caught stealing millions from the company being an intelligent board member looking out for shareholders best interests? Was appointing a Hollywood actor as CEO a good Board decision? Was appointing a new CEO with no CEO experience and not communicating with us owners a good decision for the shareholders? Was leaving CipherLoc with zero cash now the result of a BOD we should be thankful to God ("with a capital G") for because they did such a heroic job for shareholders as the company is now left on the doorsteps to bankruptcy?
"The Chasteen abides..."
David Chasteen is obviously at the mercy of Tom Wilkinson. Chasteen appears to be the appointed captain to go down with the CLOK ship. Wilkinson probably jumped in the first life raft. This may be part of a future narrative, where Wilkinson "saves the day, and shareholders."
Message in reply to: Microcap Woman
Based on this most recent quarterly report, maybe we can now understand why David Chasteen didn't do a shareholder conference call when he became the new CEO of a public corporation which is unheard of and very confusing for all of us. What would he have said?: Hello, my name is David Chasteen. I'm the one who put Andrew Borene in as CEO. He was a crummy CEO and I should have known better than to suggest a Hollywood actor as the CEO of a cyber security company. I also approved putting $220,000.00 into Andrew's pocket for doing a crummy job. As your new CEO, I will do much better than the lousy job I've done as a board member contributing nothing to the success of CipherLoc and instead did destructive actions like approving a huge monthly lease payment for the next several years for a big office space in Washington DC which could force CipherLoc into bankruptcy. In summary, I know this might be hard to believe, but CipherLoc is still burning $800,000.00 and by March 2021 we will be completely out of money and filing for bankruptcy but as your new CEO I will do my best to guide CipherLoc to bankruptcy as painless as possible for shareholders.
MDLG was great at storytelling. Wilkinson? Not really.
de la Garza fooled a lot of people, while Wilkinson made fools of a lot of people.
de la Garza was full of bs, and so is Wilkinson
de la Garza was really good at raising money, while Wilkinson has been REALLY good at wasting money
de la Garza has over a million shares of CLOK, and Wilkinson owns 15k
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I agree with Hemaygoalltheway and it is the Board of Directors (BOD) who are mostly responsible for sinking the CipherLoc ship. The real question for all of us is this: Has the BOD done this intentionally? Giving MDLG $400,000.00 and one million shares after stealing millions from us shareholders seems reckless. Giving Mr. Borene $225,000.00 on his way out the door for doing a poor job as CEO is reckless as he made about $400,000.00 for three months of work. The BOD approving a nearly $20,0000.00 DC office building lease per month under Borene for several years was reckless, destructive and just plain dumb. Spending millions of dollars in legal fees for millions of nearly worthless MDLG shares is stupid and short-sided. There was nearly $10 million dollars in the bank when Tom Wilkinson replaced MDLG as CEO and he became the Chairman of the Board. Tom Wilkinson and the BOD destroyed more cash than MDLG after the Paulson 17.20 million raise. For full confirmation of a sunken ship we all just need to look at the reported balance sheet. The $399k of reported cash from several weeks ago is all gone given the reported burn rate of $800k last quarter. It sure looks like the BOD has done a superb job of sinking our ship. Congratulations to Tom W and the BOD on doing such a great job sinking us shareholders and any shareholder value to the bottom of the sea.
...Surprisingly, it wasn’t. Wilkinson’s tenure burned about 50%
Borene hire was bad
Engaging expensive law firms was bad
Paying rando consultants was bad
Signing DC office lease was bad
Paying MDLG $400k was really bad and suspicious
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I'm pretty sure 95% was burnt by mdlg....Wilkinson isn't the dog in this show. Just my opinion.
I'd love to know Besser's opinion of Wilkinson!
Michael de la Garza and Tom Wilkinson burned through Cipherloc's (CLOK) money in less than 3 years!
AUSTIN, TX / ACCESSWIRE / July 31, 2018 / CipherLoc Corporation (OTCQB: CLOK), a leading provider of highly-secure data protection technology, today announced that it has completed a private placement of $17,250,000 million in gross proceeds before deducting offering expenses, pursuant to which Cipherloc issued a total of 17,250,000 shares. Paulson Investment Company served as the sole placement agent for the offering.
“This oversubscribed placement was supported by a wide range of retail and institutional investors who understand the unique and critical nature of CipherLoc’s polymorphic encryption platform to securing data in an increasinglydata driven world,” said Michael DeLaGarza, Chief Executive Officer of CipherLoc. “In addition to early wins confirming the capabilities of our encryption platform, we have a rapidly expanding pipeline of government, enterprise and reseller customers proactively seeking our unique solutions to secure their mission critical data. Demand for our solutions continues to increase rapidly due to our unique capabilities and solution designs for software, hardwareand combination implementations.”
Net proceeds from the private placement will be used to support expansion of CipherLoc’s sales and marketing team to meet market demand for its platform, strategic actions, and further development of its platform to address an ever broader demand for security solutions.
Each unit sold in the fundraising includes one common share and one warrant exercisable at a price of $1.20 per share.
But is it intentional?
Seems like Wilkinson may be driving this tumble, don’t ya think?
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It's obvious that if we don't hear from Chasteen soon this is gonna tumble
Man, something just doesn't add up!
So let me get this straight. Michael de la Garza raises $20-25 million, takes several millions for himself, his brother, his mechanic, some family, et al, then gets ousted by a suggested "coup" and our beloved Tom Wilkinson (brought in by de la Garza, I believe) takes over the helm. Wilkinson pretends to be large and in charge, but quickly shows his incompetence and decides that it's better for him to be Chairman of the Board. Tom takes a job at Sonim Technologies as CEO, and, as of today, drives stock price from $3 to $1.38. Wilkinson brings in the actor, Andrew Borene, who comes to CLOK with Symantec toilet paper on his shoe and a whole lotta smoke about closing "the big deal". Well, no "Big Deal" closes, and he quickly exits stage left with a nice 6 figure going away party gift.
Somewhere during all this time, the CLOK Board of Directors approves office leases left and right and also must have made consulting deals with "Sales" guys who crawled out from beneath every rock imaginable, pretending to have a clear path to this big company and that big company. None of those deals even made it to a second date! Meanwhile, more millions of dollars are flying out the door, all approved by Tom Wilkinson, the Chairman of the Board, and the rest of the Board of Directors! And they continue to sit on CLOK's balance sheet as liabilities. Thank you, Tom Wilkinson and CLOK Board!
So Borene is gone, and now we have David Chasteen. Who is David Chasteen? Why hasn't Mr. Chasteen introduced himself to us, the shareholders?? Didn't Chasteen bring in actress Borene? Well, after doing some light digging in the garden, we find that Chasteen is a consultant for SideChannel, https://www.sidechannel.com/about
Hold on! Is that the same guy, Nick Hnatiw, CLOK's CTO, on SideChannel's website, who is also SideChannel's CTO and partner, and Chasteen's boss?? Is this the "shadow CEO" mentioned in the past?? WTF??? This is like one of those binge shows on Netflix!
And all we get is radio silence. And a timely 10-Q that paints another picture of a company that has been on a crash course of self-destruction for many quarters. All led by Thomas Wilkinson, approving CLOK to spend millions of dollars on legal fees to pay de la Garza $400k and LaGanke $50k for what appears to be worthless stock. Are Wilkinson and de la Garza "dating" again? This is the same de la Garza who got caught with his pudgy hands in CLOK's cookie jars, yet Wilkinson and the Board refused to perform and accept the results of a legitimate forensic audit. Are Wilkinson and de la Garza planning to work together to turn this company around? Or are they planning to buy this company out of b/k, and do another money raise?
I don't know about you, but if I purchased CLOK shares thru a private placement, I'd be furious.
...much more to follow. Stay tuned!
Lots of big news on the way!
Wilkinson needs to be heard.
Chasteen needs to speak to the shareholders.
Hnatiw should provide some incite.
Polk must be ready to release the 10-Q; who or what is holding them up?
Lots more to follow...
10-Q due on Monday
How much cash remains?
Any new/old legal proceedings to disclose?
2nd PPP loan being sought??
What else will CLOK investors learn from 12/31/2021 10-Q??
Dunno. Ask Wilkinson.
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Sooo..no more “quantum” protection??
Someone should contact Wilkinson. He's the captain.
Tom Wilkinson has been at the helm for awhile now. Shouldn't he take responsibility?
Seems to be me that he is most responsible for blowing millions of CLOK dollars on MDLG, Borene and others who didn't "close the big deal". It seems obvious that CLOK desperately needs accountable leadership.
A counterpoint would be greatly appreciated.
CLOK Intro updated today
Overspend on legal + pay MDLG $400k +
Let MDLG keep 1 million+ common shares = CLOK got swindled again by MDLG
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Simple cost/benefit calc. Litigation is expensive in several ways.
Why did CLOK give MDLG $400+k?
Yes, CLOK needs more PPP money!!
Questions:
1) Is Michael de la Garza in an elite group of public company CEO’s without a college degree?
2) Why is de la garza still on the CLOK Board?
3) Since it’s been confirmed that MDLG lied to investors, shareholders, investing public, employees, and many more people, why is he of any value to Cipherloc?? Is he going to be the VP of lies, innuendoes and misinformation??
If MDLG was stripped of his common shares and was no longer associated with CLOK, his existence on this forum would be somewhat irrelevant. But, unfortunately, that’s not the case.
As a shareholder, I’m very concerned that de la Garza is still being used as a “reliable source” by CLOK management. I mean, seriously, how dumb do you have to be to keep de la Garza within your inner circle?
...But MDLG fooled the biggest fish...
Carlson gets the assist, for sure.
...and CLOK officers and directors...
Quote:
MDLG fooled investors
Not all of them...
Sad but true. MDLG fooled investors...
But a conference call would be the most prudent thing for CLOK management to do. CLOK has value, just not the value suggested by MDLG.
“It's easier to fool people than it is to convince them that they have been fooled.” - Mark Twain
CLOK Conference Call would be great!
Q&A Session?
Will 10-K answer the big questions?!?
10-K is due end of December (90 days after fiscal year-end of Sept 30th), and can be extended another 15 days
What white paper did Carlson write for CLOK?
He did next to nothing of value for CLOK.
CLOK is publicly_traded and must abide rules
Since CLOK is a public company, information must be released publicly, not privately and not selectively.
So, as stated many times before, if someone “heard” something from de la Garza, or Mattox, or anyone else from CLOK in a private or selective manner, they probably received BAD information.
Why do people insist that just because they didn't hear something it is not true?
I didn't say anything about any employees or children working for the company, it was a statement that came out of Milton Mattox, this was even prior to the MDLG removal.
When, where and how was this Mattox "Statement"?
As a CLOK investor, I have never heard about Milton Mattox making this statement regarding the status of "technology" or about Hufnagel.
With respect to previous analysis:
1. Hufnagel made improvements to increase speed faster than AES
2. Michael Packes and other kids hired by MDLG were in over their heads and thought that the "technology" had problems, when, in fact, it didn't.
Here's what investors were told by Milton Mattox shortly after hiring about the "technology" that Michael Hufnagel was in charge of developing.
1. Faster than AES because of the usage of computer channels called threads (non some miraculous idea by Mr. Hufnagel)
2. The technology was riddled with usability issues and essentially had to be rewritten from scratch.
That was extremely worrisome to hear, but I had faith in the company to rectify all known issues.
So apology not accepted on behalf of all shareholders.
Some heroes, many losers
The successful people are either employed or are still employable. They will always be in demand.
The unsuccessful ones may never be employed again.
CLOK has technology that is valuable.
CLOK has fans on the sidelines, and also many wanna be armchair quarterbacks.
CLOK can be successful.
MDLG legacy lives on with false narratives
False narrative in italics below:
I don't think Milton is the right guy for this job/company, but even I agree with him when he said that Michael Hufnagel didn't know how to develop software properly.
Mike Hufnagel worked under de la Garza et Al
Huf had to deal with de la Garza and Carlson taking him on daily wild goose chases and watched them both destroy deals by continuous misrepresentations.
Not to mention all the whack jobs that de la Garza brought on as “sales reps” who tried to open doors to companies and demanded pay upfront, which de la Garza almost always agreed to (the bigger the lie, the more attracted MDLG was to the sales rep).
In response to:
Please don't tell me you're talking about Michael Hufnagel, the guy who did nothing for years when he was responsible for the entire technical direct of the company.
I don't think Milton is the right guy for this job/company, but even I agree with him when he said that Michael Hufnagel didn't know how to develop software properly.
Please tell me more about raising money with ongoing lawsuits and turmoil in the company. Or anyone who wants to throw more money at a company that has burned through $20 million without producing large revenue.
Or who would invest with the lack of transparency from management/board.
There is a path to success for CLOK
There is still a need to provide data security
There is still money in the bank
More money can be raised, if needed
Engineers, salespeople, and management can be replaced and/or hired
CLOK accomplished more with less than $2 million in the bank than it did with close to $20 million in the bank.
What does that tell us? It tells us that CLOK needs to be led by a CTO more than a CEO, supported by a strong engineering department.
Where’s Huf?
The main glaring fact; MDLG wasted $$millions$$
Legal fees incurred by MDLG’s stupidity cover years. Years!! He was so stupid. Everyone knows that.
He bent over to the doctor group out of Mississippi for more than a $1mil to settle that case, Gangi squeezed him for $1.6mil and more, Roberta Kale sweet talked him into giving her $420k, Noun Energy ?, and don’t forget about all of the bad convertible debt “deals” he got the company into.
MDLG, Gangi, Ranno, Packes.....what a waste!
Peanuts, anyone??
Forgot that Gangi and MDLG burned $2million
What happened to that Gangi dude? Probably scamming someone else, no doubt.
MDLG Dumped $420k to Roberta Kale and Noun Energy
MDLG Dumped $$$,$$$ to immediate family
MDLG sold plane tickets, parachuted away...
MDLG burned $6mil in investor dollars, then sold another $20mil in airfare and burned thru half of that.
Then, thru MDLG’s actions, he caused the company to “dump” $4-5mil in legal fees.
When enough “passengers” had seen enough, they booted him out of the captains’ seat.
When new mgmt assessed the “cockpit”, they realized that the plane, engines, and “destinations” were not attainable.
Would anyone like more nuts??
MDLG single-handedly convinced CLOK_investors to "buy" into lies
MDLG is the one who created the lies that investors bought into. Albert Carlson and Carl Ranno helped MDLG to spin the web.
MDLG told investors that he was closing deals with the following (short list):
Air Force
Military
Port Authority
Bank of Santandar
Other banks in the US and outside of the US
GM
CenturyTel
Data Center in southern California
Insurance companies
GE
Jabil
What other MDLG "deals" were mentioned????
MDLG single-handedly convinced CLOK_investors to "buy" into lies
MDLG is the one who created the lies that investors bought into. Albert Carlson and Carl Ranno helped MDLG to spin the web.
MDLG told investors that he was closing deals with the following (short list):
Air Force
Military
Port Authority
Bank of Santandar
Other banks in the US and outside of the US
GM
CenturyTel
Data Center in southern California
Insurance companies
GE
Jabil
What other MDLG "deals" were mentioned????
I stand corrected. Shocked CLOK-Board is getting paid.
CLOK Board members are not being paid cash$$
CLOK Board is not being paid $$.
CLOK is busy tending to dirty laundry...
https://www.traviscountytx.gov/district-clerk/online-case-information
Cause Number D-1-GN-19-005253
Case Status PENDING
Style CIPHERLOC INC V DE LA GARZA
Filed Date 8/27/2019
Hearing Date
April 20, 2020 09:00 AM
Attorney Type Full/Business Name First Name Middle Name Last Name
BARNSTONE ANATOLE ROBERT DEFENDANT MICHAEL DE LA GARZA
KIRKLIN PAUL STEPHEN DEFENDANT MICHAEL DE LA GARZA
FRANCIS DWIGHT M. PLAINTIFF CIPHERLOC INC
MDLG left CLOK in financial disarray
Legal Fees were $500k last quarter
MDLG signed off on bad leases and stupid subcontractor agreements that needed to be terminated.
CLOK had to get rid of MDLG's family, friends and co-conspirators by paying severance/separation payments.
A real team of seasoned and experienced engineers needed to be found and hired.
I think it's still time for shareholders to be patient, even though it may seem that CLOK is approaching the end of the runway.
Fun Facts for clarity, truth, current CLOK status
CLOK spent $6 million from 9/30/18 to 9/30/19. MDLG was "acting as" CEO for most of the last fiscal year.
MDLG resigned from CLOK in July 2019 and then was terminated in August 2019.
9/30/19 10-K disclosed payments to MDLG's wife and daughters amounting to $170k
Under MDLG's direction, CLOK paid Ageos, LLC $1 million as of 9/30/19
Under MDLG's direction, CLOK paid Noun Energy $400k. This was recorded in G&A Expenses
Last quarter ending 12/31/19, legal fees paid were almost $500k
MDLG will lose all. Patience. Facts will prevail.
It has taken hundreds of hours to unravel de la Garza’s mess.
I believe that MDLG will lose most of his shares and money. I expect that he will be charged criminally and spend the rest of his life in prison.
I’d also like to see Ranno, Gangi, Kale, and other de la Garza’s do prison time for their involvement.
CLOK and NSCT shareholders deserve justice.