Market cap barely at $4 million now. WOW !
That's against debts of over $11 MILLION and from the last 10-K filing, immediate accounts payable of over $2 MILLION and only $36K cash left on hand.
The lower the price goes- the harder it's going to get to raise even pittances of cash using the toxic, convertible debt financing deals and/or Magna's dilutive credit line (the Magna line is based on a discount to market price, so it gets more and more dilutive the lower the share price goes- see the SEC filed registration statement about it)
From the most recent 10-K, PAGE 35:
"The extent to which we rely on Magna Equities II, LLC as a source of funding will depend on a number of factors, including the amount of working capital needed, the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from Magna Equities II, LLC were to prove unavailable or prohibitively dilutive, we would need to secure another source of funding. Even if we sell all $3,000,000 of common stock under the Purchase Agreement with Magna Equities II,
LLC, we will still need additional capital to fully implement our current business, operating plans and development plans."
PAGE 36:
"The sale or issuance of our common stock to Magna Equities II, LLC at a discount may cause substantial dilution and the resale of the shares of common stock by Magna Equities II, LLC into the public market, or the perception that such sales may occur, could cause the price of our common stock to fall."
Even if they tap ALL of the Magna line (not likely IMO that they will be able to access all $3 million with these dropping share prices, could be wrong, who knows?)- they still state they'd NEED MORE MONEY via financing to implement their "plans" and "current business". That would mean to me- more deals with the convertible, toxic debt hedge type house like they already used in Jan and Feb of 2015 (names they've used already like Asher, KBM Worldwide, Daniel James, Fourth Man, the new one Vis Vires group, etc)
Pretty amazing IMO.
See what next week holds- that was a pretty brutal Friday given the "big conference call" and all that. The .006's again already, holy cow.
10-Q is the next big deal I guess. See how much new dilution, how low their cash is, what their debt is and immediate debts they owe like accounts payable and stuff, etc Should be interesting IMO.
