Of course, no brainer. How could it not be?
Having said that, I found this comment on another board. While not the author and I do not agree with his scam comment, it would appear he may not have gotten the same memo you did from "Nate" as you call him. Any thoughts on his DD? For that matter, besides you talking to the Ceo, what other DD are you suggesting you did that you could share with all of us?
"Just finished looking at the PR for the quarterly results, and based on the headline, it seemed like everything was going great for the company. Then I started to do some digging. What I found was disturbing: #1) Cash flow from ops negative despite "net income" for 9 months ended 09/30/14: "From Q3 2014 10Q: In view of our working capital position, continuing operating losses and limited cash, we will be required to raise additional capital through the sale of equity or debt securities or borrowings from financial institutions or third parties or a combination of the foregoing to continue to fund operations. " They're not even close to cash-flow positive at this point. So IMO the statement re: net income is very misleading. #2) In the past 12 months, the outstanding basic shares have increased 38% and the diluted share count has increased by 59%, but the actual cash balance has only increased by about $300,000. #3) Revenues: of the $4,837,411 in Q3 revenues, $4,275,000 were "non-monetary" from license swapping. For the 9 months ending Sept 30th, 2014, of the $8,883,330 in revenues, $8,100,000 were "non-monetary" revenues, "Non-monetary" means license swapping and prepaid services. Not sure if prepaid services are lap dances at the local strip club or what, but the reality is that at best, only 10% of the company's revenues are "cash" (i.e. "real") revenues. This is how companies not generating revenues or profits finesse the earnings to make it appear they're growing when they're not. #4) Management team: past is littered with failed companies and questionable (some would call them "pump and dump" tactics) (see Augme Technoloies, now HipCricket or GEOS) The bottom line to me is that this appears to be a struggling, cash-burning scam company run by a CEO and a Chairman with unsuccessful (at best) or shady (at worst) pasts. The phrase "a fool and his money are soon parted" seems particularly appropriate in this case. Stay far away from this one..."
