Decreasing an already tiny O/S, utterly unheard of in the OTC. Also proves my point since the rapid upscaling of volume is entirely organic. A run is inevitable, and likely right around the corner.

Yep, we saw volume go from 300k to well over 11m. We are finally getting the attention needed for a proper run. Currently in the share soaking phase: everyone is loading the boat steadily while supply can still roughly keep up with demand.

Eventually, enough shares get hoarded and locked down and enough new buyers continue to pour in that a rapid rise in PPS pops off. It will seem all of the sudden and out of nowhere given MASN's small share structure and total absence of dilution. It will be wild when it starts, and you can be assured of a FOMO-based tailwind as well once the ball is properly rolling.

We are definitely moving in the right direction in that sense. As long as volume continues to pick up, a large rise in price is inevitable.

I don't see how we can stay this undervalued for so long, yet here we are. Any real buying pressure sends us off, but we are in early.

Just need enough buzz to start moving the stock; the actual run is the easy part. These go 0 to 60 (percent gains) in no time flat once the light turns green.

Indeed. In my experience, these super low O/S stocks remain under the radar with limited board activity for a while. They trade sideways the whole time, then explode out of nowhere. The usual asinine claims like "dimes around the corner" actually do come true for these types specifically. It's just a function of waiting for the one catalyst that launches the rocket. MASN specifically has potential as a revenue growth story.

My thoughts exactly. We have a real company here, not some CEO's personal ATM. Just flying under the radar for the time being due to limited exposure/catalysts. The thing is, when the first one hits and we really get going, I don't want to miss out and have to chase. SS is just too low, it will be a tremendous move that starts a full run.

Nice, this is looking clean! Soon you guys will get to experience first hand just how swiftly these low float beauties fly.

Great, I love low O/S plays. The only issue now is getting a catalyst large enough to start the run. Once it kicks off, it will take the attention of the entire OTC based on how fast it will take off. The fact that there doesn't seem to be anything else moving right now will also be a boon for us, so I'm hoping we get a random volume spike in the near future to capitalize on that as well. Could get nutty fast. The fact that this is an actual business and not some PD scam to sell shares gives me a lot of hope too. The worst case scenario is merely holding until financials come in and institutional investors begin to jump aboard, so it's just a question of winning like this week or this year.

"Sell on good news" has been an OTC strat for as long as I've been around. IQ is a normal distribution, after all.

Debt Reduction:
"...by the end of the current reporting period, the company will have successfully retired or reduced, without any destructive pressure on the stock price, well over $800,000 in principle and over $600,000 in potential penalties, fees and interest accrued on many of the company's convertible notes totaling over $1.4 million of debt that will be off of the books."

Debt Restructuring:
"...we have also successfully negotiated an agreement with our largest institutional noteholder to completely restructure remaining notes' conversion rates from variable, discount to market terms into flat-rate terms that include a trailing feature. One of the most detrimental aspects of variable conversion rate notes is that the noteholder is always in a positive equity position no matter how aggressively they sell converted shares into the market. This unique trailing rate feature eliminates any incentive for the noteholder to dump shares onto the market thus causing depressed and easily manipulated share prices."

Just those two parts alone seem fantastic to me, let alone the rest of the news about upcoming catalysts this month.

Glad to see we are finally moving back in the right direction. A nice change of pace, to be sure.

Hope so, because my string of bad luck needs to end.

A good rule to follow usually when dealing with OTC stocks...but this is a partnership. They don't call it the "dip and rip" for no reason. This should only last long enough for some of the MMs to cover before another wave of fresh buyers comes pouring in, at the same time the people who sold the news buy back in as well.

I'll just wait out the 15 minutes or so of red because I don't like chasing.

Yep, I've seen this before. Just a matter of time as more people trickle in to take positions; these walls will not hold. At this point, even just maintaining the progress that's already been made in the 50 minutes the market has been open will be enough to draw in more buyers on Monday. Power hour could be real fun too.

Let's rock.

Yep, we're going to run.

I can see a run starting here based on technicals alone, but with the fundamentals in the background providing a good sense of direction, as it were. We are definitely in early on the ground floor of the next big move.

Just feels nice to get in early for once instead of chasing the big ones after they have already left the station. Another day like yesterday will give us that momentum by itself, but the company is clearly on its way up anyway based on the financials.

Looks good, especially with the financial situation overall at the bottom of your post. Profitability achieved and now accelerating higher, with liabilities dramatically reduced to boot. It's clear that dilution has destroyed the PPS, but the share structure is not the worst I've ever seen compared to other big runners. It looks like conversions have tapered off, so hopefully that remains a non-issue going forward. Exposure is just now beginning to spread as PSRU begins rising on the Most Read list. If tomorrow sees another large move up, this could be the next winner.

Indeed, and the way it is being done leads me to believe that management is deliberately setting themselves up to be acquired or merged into. The most "in your face" choice would be Ostendo, but this is by no means exclusive as far as options go. First, let's break down the amended terms of the deal.

Any part of the deal not expressly amended still remains in effect per the terms of the original arrangement. They didn't tear up the old contract and build a new one from scratch, they just adjusted a few parameters. This means that Sysorex's non-refundable deposit of $1.6 million to purchase 166,667 additional preferred shares of Ostendo stock is still fully in effect.

1. The date getting pushed back to June 30th instead of July 22nd is indicative of both parties basically being in full accord at this point. The remaining time is just to allow the bureaucracy to get around to finalizing everything. I very much doubt the potential for last-minute changes or cancellations. If they needed more time for negotiations they would have given it to themselves.

2. The amount Sysorex is selling to Ostendo has increased to include all crypto mining assets in both the New York and North Carolina facilities, as well as the New York real estate itself. This means that Sysorex is fully divesting itself from the crypto mining business, leaving only the government services and product sales divisions. These are profitable, but not exactly herculean in scale, which ties into my personal buyout theory. More on that later.

3. The amount Ostendo is paying to Sysorex has decreased. Not surprising given that the entire crypto market has caved in over the past month, but still not my first choice in what I wish could have happened. The valuation of the Ostendo preferred shares remains the same as before ($68,400,000/7,125,000 = 9.6 $45,100,000/4,697,917 = 9.6), but Sysorex is receiving fewer total shares per the new terms. A shame, but this is still more than enough to offset all of SYSX's debt.

So how does any of this fit into a potential buyout/merger scenario? By fully divesting itself of anything crypto, Sysorex has dramatically reduced its risk profile. One of the criteria analysts look at when scoping out companies to potentially acquire is how risky the business they are involved in is. We've all seen first hand just how volatile cryptocurrencies can be, so SYSX moving away from that undeniably opens up a lot of doors for themselves regarding who would even be willing to look at them as a potential acquisition candidate. Consider that threshold fully cleared; government services are long contracts with entities that can effectively never default, and as long as the products division is at least somewhat profitable then they are all good.

Yeah, it's not like the profit margins are eye-wateringly impressive, but a very common strategy in the financial world is to acquire what is effectively a large portfolio of slightly profitable businesses. This amalgamation of consistently small returns pooled together keeps risk low and returns high enough to outweigh the inherent risk that remains. A post-transaction SYSX would fit that mold perfectly. This is why I believe that even though Ostendo is the obvious choice for a merger, there are plenty of other entities that would love to acquire SYSX too.

The other major factor would be the outstanding debts and how the influx of Ostendo equity would serve to counterbalance them. It's effectively just that simple: any entity merging into or acquiring SYSX would take on all assets, all debts, and all equity that the company owns/owes. As long as these all add up to a net positive, then an acquisition of such a company would have an accretionary effect on your own business entity. Management's goal was clearly to get as much Ostendo equity as possible, which is why the deposit was itself a purchase of an additional 166,667 shares, because you want as good a ratio as possible in this regard. Cash will never increase in value by itself barring deflation, but Ostendo's equity will likely go up in value once they begin trading publicly. In a way, Sysorex is investing in itself by investing in Ostendo.

Once the transaction goes through, I expect management will shift attention to getting bought out or merged with. This is the only way I can realistically see them reaching their goal of trading on the NASDAQ by the end of this year. We know that they already hired a specialist in OTC M&A for legal counsel, and that they have been in contact with some New York investment bankers for a while as well. It's difficult to paint this picture in any other light; as I see it, we are on the path of a merger or getting bought out.

It's alright Doog, they can help us hit the volume scanners again. I guess I'll start de-rusting my brain for more analysis again since we have news events occurring.

Yep, sticking around through the downturn too. I'll accept a temporary unrealized loss and everyone thinking I'm a moron in the short term if it means making a substantial profit later. I just stopped visiting the board when it became clear to me that it's just a bunch of people making fun of us for being down. Interesting hobby, but whatever.

Yep, still just waiting. Not much to say when everyone would rather have fun with the drama.

Well said. Business synergies are there between Ostendo and Sysorex. SYSX management wants to uplist by the end of this year; Ostendo is likely seriously considering going public in order to expedite their expansion. Being the big winner in cutting edge technology means being "first in, best dressed." I see no reason that Ostendo wouldn't be trying to go public right now, and sooner rather than later, even in a hypothetical world where Sysorex doesn't even exist.

Looks like more dotting I's and crossing T's. Another 10K/A for the same 2021 year end, even though we just had one on May 23. For reference, most of the trash companies on the OTC stop caring so much about maintaining good filings. If you were to believe some of the other posters on here, we should have already fallen out of the OTCQB because management just wouldn't care about filing anything at all, yet they do. The real question is why there is such a sudden impetus for going back and fixing all the old filings.
"They are lazy, so they are just now getting around to it," doesn't make as much sense as some of the other theories I have forming in my head.

Looking forward to seeing what the "among other things" will turn out to be. A lot has been going on behind the scenes that the DD hounds have been picking up on. I'm just saying that it would be weird to have witnessed all of the events that point towards a potential merger, such as Sysorex's hiring of an OTC mergers specialist for legal counsel, only for everyone to just stop all discussions entirely. A lot of moving parts in the background, so it isn't terribly surprising that an extension was necessary.

The next step is to see how much additional time they give themselves and analyze accordingly. All we know for now is that the deal is still officially on until stated otherwise, they filed the 8-k within the 4 business day window, and there is the potential for something even more tantalizing than a mere asset sale brewing in the works. The day to day price action doesn't interest me until a catalyst is fully in play, but it is amusing watching the negative nellies work triple overtime to complain, yet the stock remains slightly green. Personally, I'm expecting a stop-loss raid tomorrow morning, so the question is how quickly we rebound. That will give us an indication as to how tight the float is.

It's real easy for them to talk big about how cool they are for "knowing" a stock is bad because it was red for one day during an uptrend going into a three day weekend. Seems like that whole choir has been silent since the market actually opened.

That's good quality stuff. I look generic compared to you and DeepBlueEquity, but it gives me a target I can progress towards. Thank you for your kind words, and I'm glad to see the bigger picture getting unveiled.

This post should be proliferated more often, as the board should be about sharing details, information, and speculation on future events rather than drama.

Notice how all the longs are steadfast in their convictions, having done the DD and actually looked into everything. In contrast, there is an entire chorus of people who seem desperate to convince us that what we have is somehow worthless. Looking at which group is actually nervous gives insight. Just like you posted, technicals are bullish. Catalyst is still in play until we are directly informed otherwise; pretending it's late even though the 4th business day is Tuesday doesn't help their case. As a businessman, why wouldn't you take the extra three day weekend to fully make sure all I's were dotted and all T's were crossed? SGS still has active contracts with the U.S. government, so anyone claiming P&D scam clearly hasn't done any research.

Wow, a low-float, volatile stock had a pretty red day after a week of green going into a three day weekend. I guess this is the first time in the OTC for a lot of people, but everyone starts at the beginning so it's alright. I just wish the new guys would talk less and listen more unless they had some meaningful insight to offer.

No, conversions are impossible at this time due to the A/S being maxed out.
From the May 5th business update:

It will probably get released at the same time as the 8-k, since they can't exactly have an update that references a material event that hasn't been officially announced via 8-k yet.

"In light of the successful transaction with Ostendo, oh yeah that happened by the way, we have a new plan for dealing with the remaining debt."

It's just the logical chain of events.

https://www.investopedia.com/terms/1/8-k.asp

Tuesday the 24th of May is day of the event. Four business days after that would actually be next Tuesday, the 31st of May. Weekends are not business days and Monday is a public holiday.

1. Do you think this other LLC is another commodity trader or some other type of institution?

2. Imagine selling below $0.08 the day after this comes out.

I had a huge post about it yesterday, but it got deleted, I guess. The short answer is that there was 1 partial sell, 2 full sells, 3 positions maintained, and 1 transfer of ownership, so not exactly "sky is falling" material. My biggest takeaway was that another institution would specifically prefer getting shares of SYSX instead of cash from Stephen Jamison, who used the shares as a buy-in for membership in another LLC.

The last time we had a 13D/A it was Michael Bigger reducing his position to below 5%, and that was all we heard about for a week because that's all there was to potentially bash about. Now I think they are hoping for a repeat because there has been a distinct lack of actual bad news lately.

Went back to the May 5th update to see more hints. Here's what I found:

1. The first sentence, or half sentence, was our first clue as to a potential merger with Ostendo. I got so caught up in the first half regarding the equity boosting book value that I missed the second half's potentially even more important implications.

2. I mentioned this a long time ago, but investment bankers are also the people you go to for mergers and acquisitions, not just for uplisting exchanges. Very convenient.

3. Management promising a listing process update in their next communication is probably why we haven't heard anything from them yet, if I had to guess. Today is the 15th business day from the 5th, so they were planning on giving us more information on their plans going forward, but you know how communication is. The more moving parts, the more people involved, the likelier there are delays. I'm not sweating it too much personally, although I would love to read it as soon as possible.

4. Exploring mechanisms related to driving additional value for SYSX through the Ostendo preferred shares, which can't be traded or disbursed through dividend until Ostendo goes public. Well, other than using those shares as collateral for a loan, it looks like Ostendo is going public and Sysorex wants to be involved in that.

5. Exploring mechanisms related to driving value for SYSX through their GPU assets is up to you to think more about. Another sale? Reallocation for more focus in SGS? Guess we can only wait for more information.

Every penny stock filing has that going concern unless they are massively flush with cash or generating huge amounts of net profit...but then they aren't penny stocks for longer than a few days at that point.

No, they already did the reclassification. That's why the 10-K/A is what it is, an amended 10-K.

They had to change the classification because they entered Heads of Terms with intention to sell enough of their assets to qualify as discontinuing operations. That these assets are still on Sysorex's balance sheet as assets held for sale means that at the time of the 10-K/A coming out, May 23rd, the deal had not yet completed. 75% of their mining capacity comes out of the upstate New York facility, so selling that off hits the threshold for needing to reclassify, even if the company will still be engaging in Ethereum mining through the North Carolina facility afterwards.

Since we have time, might as well go fully in depth into the deal we are waiting on confirmation of. If any new guys have come around, this could be useful. I'll just break down each paragraph of the Heads of Terms Agreement pulled from the most recent 10-Q, as that's the most convenient to access.

Simply put, Sysorex is trading assets for Ostendo equity. Based on everything else I have read, these assets are the upstate New York Ethereum mining facility and equipment, both the real estate and the rigs. Sysorex will keep all Ethereum coins mined before and up to the date of closing, as well as all assets in the North Carolina facility. Sysorex originally got the upstate New York assets from completion of a reverse triangular merger with TTM Digital Assets and Technologies in 2021.

I moved some parts around to make it easier to read. This paragraph is just detailing the specific number of preferred shares Sysorex will get, as well as the stipulations surrounding when these shares become available to trade or disburse through dividend. Essentially, Sysorex cannot trade these preferred shares until Ostendo goes public by any means. The question is, do we interpret this as Ostendo planning on going public soon (possible through a reverse merger with a certain currently publicly trading company they are already in talks with), or just an obvious outgrowth of the fact that you can't trade shares in a non-public company, both common and preferred?

Also worth noting is at the bottom, the associated parties Bespoke Growth Partners, Inc. and Omniverse LLC are also receiving a portion of the shares that Sysorex is set to get from Ostendo. Hard to find good info on these two, but Bespoke looks like a boutique investment banking firm specializing in small and microcap stocks. Them getting some of the preferred shares for helping to facilitate the deal is not out of the ordinary; recapitalization is how they get paid for being intermediaries.

Here's the fun part: I don't think they would be interested in getting stock instead of a cash fee if they didn't think Ostendo was going public soon. IB's make money through proprietary trading of their own assets, so cash instead of locked in preferred shares, and by providing underwriting and advisory services. If both Ostendo and Sysorex were so broke they couldn't pay cash for these services, why would the preferred shares be worth anything on their own, especially if they were going to be locked in for a while? No IB would get involved to begin with. The fact is, Bespoke and Omniverse must have voluntarily opted for getting a slice of the pie themselves instead of a cash fee, even with the stipulation that these shares would be untradeable until Ostendo goes public. Logic dictates that Ostendo will be going public soon, and the easiest way for them to do so just happens to be merging with the very company they are already in deep negotiations with, Sysorex. Do you see now why Sysorex needed to hire advisory legal counsel from an OTC mergers specialist?

I think that if the deadline was going to be extended, we would have already heard about it. Notifications of extensions are not very complicated and there is no real benefit to sitting on them instead of just getting it out there. In contrast, closing a huge deal is complicated and they may very well need the full 4 day limit to filing an 8-k for a material change like this. The second paragraph is as straightforward as it reads. Sysorex put an extra $1.6 million non-refundable deposit for good faith negotiations, and once the transaction goes through they get an extra 166,667 preferred shares with the rest.


So the key takeaway for me from this deep dive was the involvement of the investment bank firms and why they are getting paid in shares that can't be traded until Ostendo goes public rather than cash.