Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Remember, POTN is also wholesaling product. They could be selling to Walgreen and re-labeling, couldn't they?
It doesn't mean anything when the company actively dilutes the hell out of your shares.
Yes, POTN made more in revenue and net income. Yes, their COGS stayed about flat at 65%.
Their S+M expenses, DOUBLED, because they need to continue to run these 50% off deals.
Their NET PROFIT FELL $60K YoY.
Their largest horrible toxic convertible note continues to dilute shareholder value.
It's absolutely abhorrent. He'll get hundreds of millions of shares at next to nothing and flood them in the market for 10s and/or hundreds of millions in profit.
Do you happen to have a link or a document that details this?
It is the single most toxic convertible debt I've seen. This one is going to hold POTN back for years to come.
In a month's time, POTN will have diluted another 10M shares.
I'm not clear of the note holder, hoonestly the further back you go with this company the more confusing it gets as to where that loan even originated from.
Back in 2014/2015 they were "United Treatment Centers of America" and you cant even find the toxic convertible debt until you get to 2016 or so.
Even more so, that note is supposed to have an 8% interest, which at some point just fell off into a fixed convertible, but you can't find any information on that either.
This company dilutes more and more each month.
THE DILUTION HERE IS CRAZY.
The two current pending court cases are meaningless. The total amount of debt per their filing is less than $35K combined.
What EVERYONE HERE should be poking questions at and asking is, what the hell is going on with the $1.85M convertible debt, that is converting to shares at a price of $.003? Specifically pay attention to Note 10 on the 2018 annual filing. That's incredible toxic debt.
Let me take you back to the 2017 Annual Statement, section NOTE 12:
It all starts with the Promissory Note dated June 2, 2014, which was for the amount of $1,850,000. The actual TOTAL amount due on this note (including interest) on 12/31/2016 was $2,018,624.
Now throughout 2017, POTN converted a total of 121,000,000 shares for a total of $363,000. That is a horrible conversion rate of .003 per share.. By 12/31/2017, the balance owed on this loan was $2,018,624 - $363,000 = $1,655,624
^ that is right out of the 2017 Annual statement
Now throughout 2018, POTN again converted another 69,883,334 shares at the same horrible .003 conversion price. This knocked a total of $209,650 from the loan.
So as of 12/31/2018, POTN still owes $1,445,974 on the original loan of $1,850,000, that dates all the way back to June 2, 2014.
It is a total amount less than $1.5M and instead of just paying it via check, they are diluting stock and selling shares at an absolutely crazy rate of .003.
Since the start of 2019, they've already thrown another 57.2M shares on the float. The dilution here is absolutely out of control.
Those are good questions and I don't know how to answer them. I'd have to think that Illiad Research and Trading, valued POTN at some multiple and agreed to a .45 conversion price. They must have seen information that led them to believe it was worth the investment.
I did a bit of digging and found this website. Oddly enough, no information on their investments within POTN. That being said, it looks as though this company runs a small book of making convertible debt loans to penny stock companies.
https://fintel.io/i/iliad-research-trading
But the shares are not 569.3M, that was AS OF 12/31/0218. Go take a look on otcmarkets.com right now, on their company profile page you will see it’s already up past 620M shares. That’s about a 10% dilution rate into the first 4 months of 2019.
Yes that’s fair, but look at share structure. Look at their end of year share structure compared to where it’s at already in 2019. I’ll eat the sales and marketing expenses for the sake of top line growth, brand awareness, and market share, but the dilution is rampant.
TLRY also only has 80M shares outstanding. That market value comparison is junk.
Don’t get me wrong, the audited numbers are encouraging. Sales up about 80%. That said, COGS stayed at about 65%. And net profit actually fell by 60K. Largely driven by the over 100% increase in sales and marketing. POTN needs to get their act together with the constant 50% sales. It’s crushing their top line and burning expenses. Their sales are recognized net promotions. If they weren’t running deals all the time they’d be crushing it even further.
Seems like they got most of their toxic convertibles out of the way as well. That’s good at least.
I’m looking forward to POTN resubmitting their Form 10 and finally completing the uplist process
Again, one could assume that those go hand in hand. An annual report typically contains a description of business, ongoing concerns, control procedures, management concerns, etc. As a part of an annual report, financial statements are included- balance sheet, income statement, cash flow statement.
So it's fair to think that come next Monday, we receive the annual report along with full year audited statements.
Though you know what they say about people who assume.
You'll note the reason stated on the extension filing was for completion of 2018 audit. Therefore, the logical assumption would be the 2018 annual financial statement posted will indeed by audited.
While I certainly would like this to be true, by posting something as unfounded as this, you're really just doing the board a disservice.
Trust me, I've posted here all the time on my support and confidence in VATE, so I'm hoping you are on to something.
That said, hypothetical conjecture doesn't do anybody any good.
Sorry - that first point is incorrect.
The 2018 Annual Statement is due 4/15. The Q1 2019 statement will not come due until May 16th (45 days from end of Q1).
Exactly. Any company that I have ever seen file an extension for late filing, takes every single day at their leisure and posts the financials when they have to.
POTN will not post until their due date of 4/15, nor do they have to.
Good find. The FDA has been notoriously slow to take action or provide guidance on any new compound. You'll notice the article states its a "high-level" working group to evaluate CBD.
Congress already passed the Farm Bill, which legalized hemp-derived CBD. Now the market gets to sit in this grey area where technically company's can't enhance their products with CBD per FDA guidelines.
45 days from quarter end unless an extension is filed.
Ha, same here. It's been a long wait, but I'm still approaching this with the glass half full mindset.
Tesla is a great use case for your examples. I just don't your points all specifically apply to that of VATE.
Tesla has needed to pre-order all of their models of vehicles, starting from their very first / initial Model S production almost 5 years ago. Why? Exactly to your 2nd point - they desperately needed the upfront cash as they were (and continue) to burn through hundreds of millions a dollars a quarter in their quest for scalability.
Conversely, VATE already has already had success in their initial revenue generating products as shown in their hemp based teas and coffees, as well as whatever they bring in from the CBD tincture / lotion side. Now, they are looking to launch a secondary line of beverages with the CBD Iced Teas / Coffee. Again, it comes down to scale.
VATE is very close to being cash flow positive, which is maybe something we see for the first time when the 2018 annual and/or Q1 2019 financials are posted. So I don't believe their pre-order process was performed due to a lack of cash or brand awareness. I think, again, they decided to do a pre-order to be mindful of inventory and go-forward cost.
I would disagree with you on the premise that "the entire concept of pre-ordering is a joke".
Highly anticipated product launches, even from established companies, often do pre-orders. In the consumables/beverage/food industry it's a great way to establish demand and get a feel on required go-forward volume.
My best guess is that these two new products launched that way for exactly that reason, volume. Rather than over or under produce an initial rollout for the new beverages, you run a pre-order sale to determine a defined number of units of product to be shipped. That in turn, establishes a baseline for future production.
By doing so the company can A) ensure that they don't have the dreaded "out of stock" sign on their website and conversely if the product is a flop they can B) ensure they don't have a expensive inventory of unsaleable product.
Additionally, there are manufacturing advantages to pre-ordering, think along the concept of "economies of scale". Let's say the pre-order number determines 10,000 units of product need to be made. Perhaps the company's co-packer offers a better cost per unit at 12,000 units. It would be in the company's best interest to order that extra 2,000 units for the cost advantage. A pre-order process can help reaffirm that decision.
Looks like the boards you post on are Sleek's picks - simply to put them down. Then your largest activity was on TRTC, which was a proven scam.
I'll take your opinion with a grain of salt. Good luck to you.
That couldn't be farther from the truth.
The shareholder update yesterday is nothing but good news. I'm very appreciative of the transparency provided by VATE's CEO. With that said, some of my thoughts on the letter below:
- I'm still not concerned that the CBD Iced Tea and as of today, the CBD RTD Cofee, are in pre-order status. I've stated dozens of times here already, execution of these products is key. Clearly from the CBD Iced Tea pre-orders, the demand is there. Now careful execution is required. Take the time needed to get it done.
- The filing of the S-1 Registration statement is big. For those unaware, this is a statement that is required by the SEC prior to any company being able to be listed on a national exchange. Yes, VATE is already publicly traded, but they currently report on the alternative reporting standard. Getting on to the SEC standard is far more mainstream and to the letter's point, does provide greater transparency and confidence in the investment community. The S-1 statement will require VATE to publish more on their business plan, capital spend, future endeavors, etc. Big news here.
- Note that the letter states "annual filings on or before May 16th 2019". My guess is that we will receive both the 2018 audited annual statement as well as the Q1 2019 statement at that time. Quarterly filings must be made 45 days after quarter end. May 16th is 45 days from March 31st.
- The divestiture of 02 Breathe and One Utopia, in my opinion, is a no-brainer smart move. These business lines had very little if not nothing at all to do with VATE's core business model as a beverage company (hemp/CBD coffee, teas, and iced teas). With those companies exiting, VATE has freed up monetary capital and human capital to execute their strategy.
- The overall trajectory of this company continues to shine. QoQ revenues in 2018 continued to grow. 2018 total revenue will be about 142% higher than 2017. 2018 was a massive foundational year for VATE and I'm very optimistic for 2019.
You couldn't be more incorrect. Wish you luck.
Technically, from what I understand, every OTC stock has a commitment to post their annual statements 90 days from the end of the year. Perhaps there is some give there and VATE could post their annual today and have it not be considered "late".
My expectation is that at the very least, we should either get the 2018 annual statement posted today or a notification of late filing today, which would grant them an additional 15 calendar days to file.
If neither is done, they would run the risk of being considered non-current.
This is how I think the process should work, but not 100% positive.
Wrong again.
To date, they have not posted the 2018 annual statement nor have they filed for an extension. We will see what gets posted today.
Typically these postings are done before or after market hours, so time will tell.
https://www.otcmarkets.com/stock/RSHN/disclosure
2018 annual and disclosure.
While I agree it could come sooner - every pink sheet company I have ever followed that files for an extension, takes full advantage of the full 15 calendar day period. I'm working under the assumption they will be posted on 4/15.
Nothing is up. Pink Sheet companies file late all the time. I’m happy they actually filed for a legitimate extension rather than risk non-current. Hopefully when they file on 4/15, it’s audited.
Annual statement filed on otcmarkets.com
Still wrong.
Sorry - but not following. Did you even read your own headline before posting? The SEC charged COBI's noteholder's, not the company itself.
If it's financiers were operating a microcap scheme, one should not automatically assume COBI had a role.
I don't think that's negative, rather its thinking pretty level headed.
The company itself is thriving, now it needs to be made legitimate in the eyes of the wider investment community. That means, audited financials - timely quarterly and annual statements. Filing their Form 10 and registering with the SEC. Applying for uplisting to stronger exchanges.
My guess is that we will get either the annual filing today/tomorrow or a notification of late filing.
My other hope is that this 2018 annual filing contains audited financials. If so, that would mean they would also be ready to resubmit their Form 10 and again start the process for uplist.
90% of what is listed out in that post is incorrect.
-Uplisting delayed as 2 years audited financials required.
-Trucks are actively out within FL, they've been spotted and pictures have been posted here.
-Vending machines have been actively showcased, perhaps not deployed.
-Kiosks do exist, picture evidence provided at malls.
-Name change was cancelled.
The rest of what is claimed is simply outright bogus.
I've been trying to preach this for months... well said!
Such as?
Foodies is a well liked bespoke grocer in the Massachusetts area. There is one well positioned in South Boston - where there are a good deal of recent college grads and young working adults.
I'll have to swing through there and get the CBD Iced Tea!
Tell me - how could you possibly measure the release of the CBD Iced Tea a "fail"? Because the PPS didn't immediately sky rocket due to a new product launch?
You don't know how many units of product were pre-ordered, you don't know the total dollar amount of sales, and as such, you have no idea how it impacts their bottom line. There's no data to support your argument.
To play devil's advocate, there's also no data to prove it was a success. The proof will be in the financial results, most notably in Q2. Until that point, it's all conjecture.
This is the article that matters. It is dated after yours.
https://www.otcmarkets.com/stock/POTN/news/PotNetwork-Holdings-Inc-Withdraws-Form-10?id=213240
When POTN withdrew their Form 10, it was due to their automotive business from 2015 and 2016. While the article states that the previously audited financials in 2017 "presented fairly the financial condition of the company", it is of little consequence.
When the new auditor was hired, they had to re-audit 2017 as well as perform an audit on 2018. To say that they wouldn't have to re-audit 2017 would be silly, as they will not put their name on something they haven't reviewed.
Hopefully when the 2018 Annual Statement is published, it will already be audited. That way POTN will be able to quickly / efficiently re-submit their Form 10 form and continue to move forward on uplisting to the OTCQB.