Monster Arts Inc (APPZ)

[Raggedy Man]

Monster Arts farce enters final act

I haven’t been keeping up with Monster Arts (APPZ) much lately. It’s a crappy OTC stock with weak internal controls — most likely a total fraud. I did skim APPZ’s most recent 10-Q, however. Same miniscule revenues. Same bloated SG&A expense. Same toxic financing mix (APPZ has issued even more shady convertible debt in 2014 — not that it came as any surprise).

One thing I did find interesting was this gem from the MD&A section:

Management is concerned that the Company may not have sufficient funds to meet its financial obligations for the next twelve months. Management believes the Company can generate sufficient cash reserves to keep the Company operational through the fourth quarter. Management will need to obtain outside funding to keep the Company operational beyond the third quarter. There are no assurances that management will be able to secure outside funding. Management anticipates that the Company will need to spend a minimum of $30,000 over the next twelve months to pay for audit and legal fees to keep the company fully reporting. Failure to secure additional funding can result in the company being fully reporting, but not operational. The Company will require additional funds to build its business infrastructure. In the event the Company requires additional funds, the Company will have to seek loans or equity placements to cover such cash needs. There are no assurances additional capital will be available to the Company on acceptable terms.

If the Company falls short of capital to keep the Company fully reporting, our officers/directors have agreed to donate funds to the operations of the Company, in order to keep it fully reporting for the next twelve (12) months. No agreement exists that our officers/directors will continue to donate funds to the operations of the Company for the next twelve months; therefore, there is no guarantee that they will continue to do so in the future.

Seems this farce may be entering its final act.


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