Viscount Systems (VSYS)

[nynewbie]

I hate to say it but I was being facetious about the new hire and know nothing about him. I'm sure he's a nice guy. I shouldn't post here since I'm a bit too real but from the get go I was concerned that Raefield would decide to build an empire for himself and not a company.

There is a standard formula for disaster that's been repeated hundreds/thousands of times. A small company does a financing and the offices fill up with administration and senior management based on the premise that they will hit their goals and a CEO who needs to fell important. These positions do little to help hit the goals and they are non revenue producing.

I've followed the news for the year and the thing that stands out is that the company seems to be living by the US Gov't contracts that were already coming into place. There have been no other real revenue based news releases. Yet, to execute nominally larger revenues Raefield has hired himself umpteen senior managers and VP's. From there financials it appears they've almost doubled their labor overhead but with maybe 1 or 2 sales hirings.

Based on their old cash burn the $2.5m should have given them room to grow to profitability with room to spare. Raefield's contention that they have $$ for a year runs contrary to their financials so unless they have huge US Gov't contracts in the bank that have not been released their cash burn rate indicates they are in trouble by the end of Q1.