Regarding the loan, I wonder if you might have another question for Investor Relations of the Company. Let me copy into this posting the relevant part of the 8K:
Pursuant to the agreement, the Company borrowed $200,000 USD from the Bank and received net proceeds of $195,000 USD after deducting an origination fee of $5,000 USD. The loan is payable in 147 payments of $1,727.89 due each business day beginning on and after January 5, 2015, with the total repayment amount (subject to certain exceptions) being equal to $253,999.83 USD (the “Total Repayment Amount”).
I'm going to do an approximation here rather than a precise calculation, so please bear with me. The total interest on the loan is roughly 59K (the excess of 254K over 200K, plus the 5K origination fee). The average amount being borrowed is roughly 98K, which is half of the 195K remaining after the origination fee, because the loan is being amortized over these 147 days rather than being repaid in full at the end of the term. So if we create a fraction of 59K divided by 98K, that's a 60% interest rate for 147 days. Since 147 days is roughly only 40% of a year, then we need to annualize the 60% interest rate for the partial year by multiplying it by 2 1/2, which means that the Annual Percentage Rate would be something like 150%.
I may very well have made an error in the calculations and a fool of myself, but if not, you might ask Investor Relations why the Company would prefer a large (usurious?) interest rate to dilution. None of this is meant as any disrespect to the bulls in VHUB or to the Company - it's just a reasonable question from someone who is out of the market, but enjoys keeping up with this Board.
