Malvern, there is much for me to agree with on your post, and some for me to expand upon:
1. Yes, it is a true family business, and they themselves have indicated in management discussion and analysis that they're aware that adding outside directors would be beneficial (which is not yet feasible presumably due to the costs of the insurance coverage that would be needed).
2. Paul Knopick has indeed written/edited some well-crafted material for the company, and I found that the CEO's remarks from earlier today were particularly well-written.
3. I think you're absolutely right that it would be better for the company to have a capital structure that would less reliant on debt and somewhat more reliant upon equity. I'd be less tempted to wait than you are to get there, and in the end the forbearance of the vendors and debt-holders, if necessary, would dictate the timing of the partial dilution.
4. As regards the product-mix improvement towards higher-margin products, I would have felt even more positive on that score had the company not instituted their 10% sale to inaugurate their improved website. Higher-margin products also tend to invite competition.
5. As regards the amplification to be coming from the CEO as to his responses to the poor bottom-line of the second fiscal quarter, I think the shareholders will need to hone in on whether Kyle is speaking about processes or results (with two thirds of the third fiscal quarter having been completed, the shareholders probably can be told how sales are actually trending, even more than what's being done to boost sales).
Overall, I respect your confidence and optimism regarding the stock, especially as you have "read between the lines of the press release." Nonetheless, the company has two mountains to climb - 1) overcoming the shock of having increased the authorized shares first and explaining later (it is poor practice to surprise shareholders); and 2) demonstrating that sales did not have a "going back to college" bump in the first fiscal quarter that cannot be sustained.
If the bulls and the bears on this Board will listen to each other's points of view when stated calmly and respectfully, I think that the bulls will understand why the stock price hasn't sustained its raise further from the recent intra-day low of .012 and the bears will understand why they haven't been given the option to again purchase the stock at the tax-loss selling season low of .006. Malvern, you've stated the case for bulls about as well as it can be presented, for whatever my opinion may be worth.
