Industry Source Consulting Inc (INSO)

[Taemujin]

RL,

What I'm having trouble is that even if these "preferred stocks" are out there, it does not makes sense to convert them now. Not at these prices. Why now is my question. Why would you convert your preferred stocks to break even or for little money?

And you are right, we need to ask these questions to Molen. How many A/S, O/S, and all of Preferred stocks issued. For all of you who have participated in PPM, it is my understanding that under regulation D - company must provide full financial disclouser.

Reg D is composed of various rules prescribing the qualifications needed to meet exemptions from registration requirements for the issuance of securities. Rule 501 of Reg D contains definitions that apply to the rest of Reg D. Rule 502 contains the general conditions that must be met to take advantage of the exemptions under Regulation D. Generally speaking, these conditions are (1) that all sales within a certain time period that are part of the same Reg D offering must be "integrated", meaning they must be treated as one offering, (2) information and disclosures must be provided, (3) there must be no "general solicitation", and (4) that the securities being sold contain restrictions on their resale. Rule 503 requires issuers to file a Form D with the SEC when they make an offering under Regulation D. In Rules 504 and 505, Regulation D implements §3(b) of the Securities Act of 1933 (also referred to as the '33 Act), which allows the SEC to exempt issuances of under $5,000,000 from registration. It also provides (in Rule 506) a "safe harbor" under §4(2) of the '33 Act (which says that non-public offerings are exempt from the registration requirement). In other words, if an issuer complies with the requirements of Rule 506, it can be assured that its offering is "non-public," and thus that it is exempt from registration. Rule 507 penalizes issuers who do not file the Form D, as required by Rule 503. Rule 508 provides the guidelines under which the SEC enforces Regulation D against issuers. On April 5, 2012 President Obama signed into law the Jumpstart Our Business Startups Act, also known as the JOBS Act, which for the first time in over 80 years relaxes investment securities offering rules first enacted during the Great Depression.

Looking for your input here and anyone else who can chime in please do so.

Thanks and GL to all of us longs,

T.