NovAccess Global Inc (XSNX)

[stumphole]

I live in the UK. I sold out yesterday for 650% profit. Luckily I saw www.stocklemon.com Friday!
Here is the full article. Draw your own conclusions.
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March 17, 2006
Stocklemon reports on XsunX Inc. (OTCBB:XSNX)
Stocklemon reports on XsunX Inc. (OTCBB:XSNX)
Is this glass half full or half empty?
Stocklemon notes the remarkable rise in a tiny Bulletin Board stock XsunX (OTC:XSNX), up over 800% from 26c just 3 months ago. It presents all the ingredients that should make even the most risk-tolerant speculator very cautious indeed. With a market cap of over $400 million, XsunX needs a serious review.
The Company
Salaried Employees as of September 2005 - 1
Total Spent on R&D since inception (over 9 years)- $905,519 ... that amounts to appx. half a penny per share.
Cash in the bank- $1,278,163 (2/21/06 10-Q from 12/31)
Notes payable- $2,850,000. (2/21/06 10-Q from 12/31)
Offices- Executive Suite in Alison Viejo California
http://www.abcn.com/executive-suites-US/CA/Aliso%20Viejo/executive-suites.htm
XsunX claims to have a technology for glass manufacture that can create solar photovoltaic collectors from ordinary window glass. Sounds fantastic all right, but the company has been making these claims for years, with no tangible independent evidence that it has a product even remotely close to production.
Here are links to some of the 50 different PR’s this company has produced over more than 2 ½ years without a single shred of tangible, independently verifiable evidence that there is a viable commercial product at hand.
http://www.xsunx.com/comp-news.htm
Here are some of the more colorful headlines:
“Solar Electric Architecture Initiative” PR: Oct. 14, 2003
http://www.xsunx.com/news6.htm
“Working Model” PR: April 27, 2004
http://www.xsunx.com/news11.htm
“Hits Milestones” PR: August 4, 2004 :
http://www.xsunx.com/news13.htm
“Promising Commercial Future” PR: Jan 10, 2005
http://www.xsunx.com/news24.htm
“Improved Production Efficiencies” PR: June 13, 2005
http://www.xsunx.com/news35.htm

Yet, their revenues since inception = $0
http://www.sec.gov/Archives/edgar/data/1039466/000107258806000012/0001072588-06-000012.txt

Management
The chairman of XsunX is Brian Altounian. Mr. Altounian is also a director of OTCBB company Cereplast, Inc., (CERP.ob) which trades at 78c and has never been worth more than $1 per share. Furthermore, he is a director of Machinetalker, Inc, (OTCBB:MKTN) which trades at 22c.
The President and CEO is Tom Djokovich. His credentials include serving on the board and former CEO of Accesspoint Corp (OTCBB:ASAP) which trades for 2c, and as a director of Roaming Messenger (OTCBB:RMSG) which trades at 6c. Being a director of Roaming Messenger is not something to hang your hat on as they just reported last week.
“Jonathan Lei [CEO and President] and Bryan Crane [VP] have been indicted by a federal grand jury in February 2006, alleging that they conspired to commit securities, mail and wire fraud in connection with an offer for private funding made to Roaming Messenger Inc. over a year ago, in February 2005, by a fake investment fund formed by the Government.”
http://www.sec.gov/Archives/edgar/data/743758/000106594906000027/0001065949-06-000027.txt
We are not saying that Mr. Djokovich did anything illegal or had anything to do with the alleged misdoings of management of Roaming Messenger. We are simply pointed out current doings with Roaming Messenger.
Capital Structure
XsunX has been extremely liberal giving away their stock at cheap prices for years. Below is a table of stock given for services or cash over the past few years. Notice most of the stock was issued in the 10 to 30 cent range.
Shares Amount
Issuance of stock for Assets 7/03 70,000,000 3
Issuance of stock for Cash 8/03 9,000,000 225,450
Issuance of stock for Debt 9/03 115,000 121,828
Issuance of stock for Accruals 9/03 115,000 89,939
Issuance of stock for Services 9/03 31,300,000 125,200
Issuance of stock for cash 3/04 181,750 21,071
Issuance of stock for cash 4/04 217,450 22,598
Issuance of stock for cash 5/04 254,956 34,669
Issuance of stock for cash 6/04 694,649 96,306
Issuance of stock for cash 7/04 157,649 21,421
Issuance of stock for cash 8/04 57,000 5,133
Issuance of stock for cash 9/04 1,174,500 81,472
Issuance of Common Stock Warrants 1,200,000 1,200,000

Issuance of stock for cash 5,919,537 471,068
Issuance of stock for cash 300,500 20,067
Issuance of stock for services 10,000 3,000
Issuance of stock for services 300,000 24,000
Issuance of stock for cash 527,000 40,260
Issuance of stock for services 125,000 10,000
Issuance of stock for services 114,469 13,827
Issuance of stock for collateral (treasury) 26,798,418
Issuance of stock for loan inducement 2,544,031 310,117
Issuance of stock for services 40,441 7,500
Issuance of Common Stock Warrants 951,250 951,250

Meanwhile, the company reports its outstanding shares to be 127,417.080, giving it an astounding market capitalization of $350 million, not bad for a company with one salaried employee and a going concern. In addition, a recent financing gave the financier 50 million shares plus 5.2m warrants in a convertible deal, which raises the fully diluted outstanding share count to over 175 million shares according to our calculations.
The Promotion
Stocklemon notes the repeated email blasts for the “Green Chip Stocks Newsletter” which is published by Angel Publishing. We believe much of these email and mails are occurring in Europe. Here is an example of the hype that is being distributed.
http://www.aktiencheck.de/forum/all/239764/thread
Angel Publishing is run by 3 “creative” guys who freely boast they learned their trade working for Agora publications.
http://www.angel-publishing.com/
Agora has been involved in numerous notorious stocks of dubious value profiled previously by Stocklemon, including (LENF, GMXX and GDVE ) and has been sanctioned by the SEC for failing to disclose positions in stocks it touted.
http://www.sec.gov/litigation/litreleases/lr18090.htm
In its email blasts, the authors paint a “rose coated glasses” view of the potential of “solar glass” without disclosing the volumes of cheap stock this company has issued, nor explaining how this tiny company can actually deliver more than a dream.
Conclusion
Stocklemon believes that XsunX has a long way to go before being a bonafide $400 million company. It is about time the company stop producing press releases and start producing revenues. The recent rise in the stock has been the doings of many crafty stock promoters that we will discuss in future reports. XsunX has become the poster child for the Stocklemon motto “Cautious Investing to All