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Days until de-listing unless price is over $1 or an extension is approved.
Also looks like the license was updated (but still not approved), Wasson is no longer on the license (finally).
Their contractors license. Without it getting renewed they cannot do any work in the state of California, where about 90% of their business is done. This isn't the first time the has had an issue. Abe Emard, a former top executive of the company, lied to the state of Nevada about his criminal history, which got Sunworks fined a few years ago.
https://www.scribd.com/document/396785796/Abe-Emard-Lies-about-criminal-past
What we know is that they applied for renewal, but that it has not been processed as of yet. Unless they applied for and received an exception, then it is illegal for the company to do any work right now if we assume the state database is up to date. There were all kinds of inaccuracies on the previous license, like a guy named Edward Wasson certifying that he owned over 10% of the company, despite this not (hopefully) being the case.
This might be useful to you: http://www.cslb.ca.gov/Resources/GuidesAndPublications/BuildingYourCareerSpanish.pdf
Just more SBC at a .30 stock price. Now they can get around to getting their permit filled out!
Abe Emard's new company, which has an active contractors license, now appears to be providing solar services in Rocklin.
https://www2.cslb.ca.gov/onlineservices/checklicenseII/LicenseDetail.aspx?LicNum=1033599
https://servicecityusa.com/
He even uses the companyname+usa.com naming convention in his website.
I was indirectly called out for bringing this to the attention of shareholders by the CEO of Sunworks during a conference call early last year. This is what was said then:
Sunworks CA contractor's license is currently listed as expired.
https://www2.cslb.ca.gov/onlineservices/checklicenseII/LicenseDetail.aspx?LicNum=441690
Someone needs to update something because this is the license number listed on the company website, and this is what the California government is saying about that licence.
Keep in mind when Cargile came on, most of these problems were unknown to him, unless he was lying to shareholders. The only reason he wasn't making bogus statements about the cell was that it doesn't seem like anybody actually told him what that was. Just look at the first few conference calls after he took over, he clearly underestimated how big the issues were. I don't think he even knew that Nelson and all the original venture capital firms that founded SLTD work out of the same office in Santa Barbara. Which is:
1933 Cliff Drive
Santa Barbara, CA 93109
United States
Nelson and friends are massive fraudsters, in reality they also scammed Cargile (if we assume he is honest, and personally I do) by not letting him in on what happened until they were long gone.
Unless you do 100's of hours of due diligence, 99% of people looking at this company would think that Cargile took a successful company and ran it into the ground. Because if you just look at the financials, that is what happened. The real story is of course a lot more complicated. Cargile likely knows that unless he turns the company around, he will have a difficult time having a career after this for those reasons, not enough people know the truth to explain otherwise.
But here is the thing, and a lot of what you said is true.
They put him in a bind, they made it in his best interest to look the other way and let them get away with stealing your money. And you are right, if Cargile were to actually go after them it would be incredibly risky, the most likely result would be that the company would get sued by angry investors and go bankrupt, putting him out of a job and sending the stock to 0.
Basically the old management has the shareholders in a hostage situation. Either let them get away with their fraud and theft, or lose what little you have left. This is what I mean about them winning.
They won completely. It's in their own victims best interest to let them get away with it. This was a very well run scam, perfect in almost every way.
That's what I mean when I say they are not perpetuating it. Keep it mind they didn't stop the fraud. The fraudsters (including convicted felon Jonathan Lei of Pearl Innovations) finished looting the company and handed it over. The only thing the new management gets credit for is not starting up a new fraud.
However, they still use the same law firm, which is itself enmeshed in lawsuits regarding work they did on other frauds.
https://www.barrons.com/articles/the-lawyer-at-the-center-of-sec-pump-and-dump-case-1538675403
They still use the same accounting firm from Boca Raton (major red flag just there), which LIED about a failed PCAOB inspection. This was only removed from their website after I told the company about it. If the only thing keeping their auditors half-way honest is ME PERSONALLY (a guy with no qualifications who rants about a company on the internet for no reason) keeping an eye on them, then you have a big problem. The only reason not to address this is if having even a semblance of credibility in the market is not on your list of priorities.
Long story short the new management was given a pile of garbage, and while they may be making best efforts to improve it, they don't care about how it got that way.
They cannot care by the way, because if management were to make statements acknowledging the massive fraud perpetuated against their shareholders they would be out of work quickly when the lawsuits come pouring it. Even if they are not personally liable for what happened, the company is, and I doubt they have the courage to lose their jobs and jump on that grenade for the sake of a few angry investors.
That bonus for retirement was one of the last things JN did. Had the board (which was controlled by his friends and relatives) approve a change to his compensation to pay him all of his bonus shares upon retirement.
As we all know now, the entire time this company was run by him the only thing they were doing was talking a big game to shareholders while stealing as much money from them as possible in as sneaky a way as possible.
They would modify tiny footnotes and change a few words in already completed agreements that would end up netting people like Greg Boden of the fake venture capital firm Bountiful Capital millions of extra dollars.
And they got away with it. They lied blatantly, stole your money blatantly, and now they are rich and happy and apparently nobody will do anything about it. Current management, though not continuing the scheme, seems to be uninterested in this. They seem to feel it's irrelevant that nearly their entire investor base was defrauded by the company.
The warrants are not cheap.
They are worthless.
The only hope for the warrants involves a scenario where the company destroys it's common equity holders, even more, by raising capital. This reduces the conversion price of the warrants. The only reason to buy warrants is that you want to make a bet the company will raise equity in a highly desperate situation.
Long story short, if you own warrants, you are short the company.
CC first day after election... probably the best day the entire year to have a CC if you want the least amount of people possible tuned in. That said speculating results based on ER date is usually a waste of time.
All of those were blatant pump and dumps, you are saying same thing happening here? Being organized on Discord I imagine?
Possible reasons for recent decline:
http://courtindex.sdcourt.ca.gov/CISPublic/casedetail?casenum=201800045609&casesite=SD&applcode=C
Related:
There isn't much left to sell. Nelson et al looted the company by intentionally (in my view) burning cash to show massive revenue growth by undercutting the competition and booking unprofitable projects. Old timers will remember Fresno, in which the City Council tanked the deal, which was an example of this.
Company insiders had been leaking that kind of stuff for a while as well.
Through accounting tricks they made this growth look profitable, which made the stock price go way higher. They used this opportunity to sell a ton of shares, give themselves bonuses, and bank millions and millions for themselves.
The kind of tricks they used involve recognizing revenue early, and expenses late. So it was only a matter of time before it caught up with them and they would have to unwind it all by booking big losses on "legacy" products. But as you can see, the lifetime of a single project can be years.
Chuck was basically hired in order to take the blame for all of this, and fortunately for Jim Nelson, he is dutifully fulfilling his role.
He was scammed by them just like the rest of shareholders, in my opinion of course.
I wonder if Chuck knows that by saying things like "he appreciates Nelson" and not revealing what happened prior to his arrival in more detail (it wasn't just innocent mistakes), he is just making himself unemployable in the future as it will appear that he destroyed a successful company. After all the numbers and share price was doing OKish (income statement much better than share price) before he took over, and took a plunge right after he did. Of course shady accounting and business practices from the prior team does take most of the blame, but nobody outside a few people know this.
For shareholders though this is probably a good thing, if he doesn't turn around Sunworks his career is going to nosedive, so he probably really wants to turn it around. But like they are finally figuring out, things were a lot worse than expected.
Also Greg Boden's accounting firm of choice probably isn't the best group of people to look over the books. I trust management more than the auditors at this point, who had a blatant lie on their website which was only removed when I personally pointed it out (they didn't remove it when I asked them about it, but when I asked someone else about it).
Well now we are seeing what numbers would have looked like in previous years if they hadn't been cooking the books. The excuses being made for why revenue is low now (low margins on previous projects) were explicitly denied at the time by management who said very plainly they were taking high margin projects.
See here for example of previous claimed margins (over 30%!): http://www.marketwired.com/press-release/sunworks-reports-over-100-organic-revenue-growth-in-first-quarter-2016-nasdaq-sunw-2123666.htm
And the earnings did indeed show high margins.... until they had to "adjust" them later when expenses were suddenly too high. And now margins are terrible on these very same projects when accounted for (hopefully) properly.
I wonder what the strategy is behind PRing a gas station install?
You got defrauded and lied to by Nelson and his buddies, who are now rich thanks to their actions (mainly his buddies). There wasn't much left over for anybody to save.
I see the are bring back Liggett + Webb as accountants.
They had some lies on their website about how they passed accounting inspection (they didn't). When I asked around to certain people about it they removed them from their website (I archived them though!). Oops! Surely trustworthy people to conduct audits of public companies.
Pretty much Greg Boden's personal accountants, again, surely no conflict of interest there especially considering Boden's oh so fortuitous timing of stock sales.
BSRC... bad company.
Same group of Santa Barbara scammers involved in that one. The sticky by TJS should explain most of it.
End of month... low volume. Probably not a "somebody knows something" situation.
More like the people who never knew anything and still don't just had their social security checks cashed.
This doesnt seem to be a scam perpetuated by a felon and his friends. So probably not.
It's safe to say at this point almost all press releases any more than a year old was just forward looking lies. Nelsons ship never left safe harbor.
That mandate won't go into effect until 2020, which given the financial situation of SUNW, doesn't really effect them in the short term (I think they said this on the CC). By 2020 the turnaround will have either been successful, or SUNW will be gone.
It will be interesting to see if this mandate has some negative effects as well in the short term. I've seen estimates showing that the solar mandate will add about 10-20K to the cost of a new home. This is hardly a consideration in SF where the median price is +$1M in most zip codes, but SUNW mostly operates in the Central Valley.
See here:
https://www.trulia.com/home_prices/California/
The price of a home in the Central Valley will be increased significantly more proportionally as a result of the solar mandate when compared against the price of a home in the wealthier parts of the state. I think it's likely developers will rush to build an excess inventory of unencumbered homes before the 2020 deadline, which will probably muddy the waters a bit while this new mandate comes into effect.
Pretty good call overall, management optimistic without setting unrealistic expectations. That was a major issue with Nelson where he went beyond normal optimism and would make or allude to things he knew would not happen in order to pump the stock for Greg Boden to sell on what I believe was material inside information.
Very detailed explanations of the issues they have and how they are adjusting to t hem. However, things will need to go near flawlessly for them to make it in the long run though since there probably won't be another lifeline like they got with this loan. I think it's worth giving them a chance, but there is still a very high risk of stockholders being wiped out unfortunately. If this team had been in back in 2015 or 2016 before lyin' Jim Nelson and his fraudster pals looted the company, chances would be much better.
I've been going through some older information / statements and this stuff they are saying about taking low margin contracts intentionally seems to directly contradict statements from the previous crew. In fact it seems the previous management made some pretty solid statements that margins would be in the upper 20s.
Balance sheet is obviously pretty bad, which is why the loan was absolutely necessary to give them a chance to fully implement the new program.
Whether or not the price goes down depends on how expectations for this ER differed from what happened. The company isn't at fault here, as they did say several times this quarter wasn't something to get excited about, but expectations might have been high anyways.
The promise not to dilute at these levels, or with the warrants, is essential to preserve any chance for long term shareholders to be rewarded as well. Too bad for those who invested in the warrants, since that promise likely just sealed the fate for those who bought those. Their only hope was a dilutive capital raise to reset the conversion price.
TLDR: Things are getting better, but it might (hopefully not) be too late to matter.
Warrants... comprehensive look at the value the warrants are and will always be:
The main issue with the loan is that it shows how deeply distressed the company is financially. It's something like 850-900bps above libor, which is pretty far into junk territory for debt these days.
However, the last loans (p-notes) had effective interest rates of like 100% - 1000% (which was basically management taking a loan out with itself and paying themselves lavishing with your $$$ because Nelson lied about not being linked to Greg Boden, who was on the other end of that P-note) so we have come a long way from that.
I am not counting the loan they took out at on Dec 31 and paid back on Jan 1 which was used to manipulate the balance sheet into looking stronger.
Doesn't make the loan the wrong move, it was needed for sure. But it's not a sign of strength either. Management being involved in it was probably not optional, but who knows.
I have a long position that I started at the day Nelson got sacked (and I said so publicly). Just to be clear the strategy behind this is a short term trade based on Nelson getting sacked, the company is still in pretty rough financial shape and pretty much the only thing that will save it is guidance being accurate for the first time in 5 years (not counting when accounting was manipulated by previous team).
I will probably sell it in a few days before Q1 since it's gone better than I expected, and then decide what to do from there.
Love the schadenfreude though.
He is getting his retirement package that he set up for himself right before putting Cargile on the board.
If you notice he actually had sold almost all of his shares long ago before getting that package.
Also the deal that ripped everybody off the most was with Greg Boden, who actually did start dumping shares right after Nasdaq up-listing and continued to do so every time there was a chance to unload many shares at high volume.
Keep in mind that Nelson and Boden are a team, they worked together to roll shareholders over. Do you have an alternate story as to how Boden turned $30,000 into at least $5,000,000 while most lost money?
Read the filings so you actually know what is going on, you can figure most of this out just from that
This story isn't over yet. This would take a while to explain, so I won't right now. But much of the money that people spent investing in the cell (the 90% that didn't go to R&D) is now being used to set up a company to provide data analytics services for Trump's 2020 campaign. These guys are now working with Brad Parscale, Trump's campaign manager for the upcoming election.
From my own observation, it looks like Trump's 2020 campaign donors may be the next source of $$$ for these guys.
50 trading days.
Based on the volume today is how long it will take Nelson to finish f#$*ing longs over one last time.
Well Nelson gets the last laugh.
https://www.sec.gov/Archives/edgar/data/1172631/000149315218006220/xslF345X03/form4.xml
Almost a million extra bucks courtesy the cronies he placed on the board of directors who are also gone now.
Truly nobody was more successful in this whole enterprise than him (except his buddy Greg Boden).
He is getting rewarded for scamming all shareholders and basically being an overall scumbag when it comes to business. I wonder if his family knows that all the money he provides for them is just money he stole from retail investors that he tricked with his lies?
Zero accountability!
This is not what is happening.
Not even close.
I found another Big Star Capital, an LLC defunct since 2000 in WA State that Nelson might also be referring to instead of the one in Florida.
https://businesswiki.info/company/wa/601964799/big-star-capital-l-l-c
Doesn't make sense why he would say from 2009- though.
Nelson just disclosed relationship with SEC sanctioned firm while CEO of Sunworks?
His Linkedin was recently updated to account for his ouster from the Board of Directors:
Notice the addition of Big Star Capital, which he said he was associated with from 2009 until today. As far as I know he has never disclosed his relationship with that firm.
Here is litigation brought by the SEC against that firm for conduct that occurred while Nelson claims to be a part of that firm.
https://www.sec.gov/litigation/admin/2015/34-74586.pdf
All of this is still relevant to shareholders who think that they were misled by Nelson until statute of limitations is up BTW.