TNI, I think that the ongoing concern is there for any startup company. While I could say it doesn't bother me, it does only slightly because I look at this as a startup. Any startup will continue to have 'ongoing concerns'.
It's all just part of being a startup.
As for the debt, I don't see it as an issue. While it would be great to have no debt, seeing the large picture around the products, including the patent, makes me comfortable that STTK is headed in the right direction.
Having been involved, as CTO, in a startup before that was $25M in debt after the first 12 months and knowing what it takes to do product development before income starts coming in, I think that the debt is actually very reasonable.
I look at as positive that their debt is actually this low, knowing that they are trying to upgrade the plane while it's in flight.
If they were $15M in debt I wouldn't have ever invested, that's why I checked them out as thoroughly as I did in the beginning.
Personally, liquidating the company now would be an issue, however, once they have the patent approved, they should be able to sell that for $15-25M easily. Tack on the additional products set to release soon and it easily becomes an acquisition target for some of the other streaming companies that really want the user base, the advertising patent, the radio stations and all the rest of the technology and the sky's the limit.
Just my opinion, but where my head is at after reading the 10Q.
Take care,
BI
