NeoMedia Technologies, Inc (NEOM)

[RisknReturn]

Vero, it is not true that there will be less dilution if PPS increases. YA's convertible debt is death spiral on steroids.

If PPS increases YA's conversion price is set at the lowest single days weighted average trading price which is currently about $0.00018. That conversion price can go lower but not higher. The "anti-dilution adjusted prices" are listed in the table on page 37 of the 10-K.

My estimate is that if all debt and preferred stock were to immediately convert that it would take 240 billion new common shares to accommodate a full conversion; that would mean that current owners only have about 2% of the total equity value. But whether it is 2% or 4% (as you computed) doesn't really matter when the only logical conclusion is that the equity is worthless.