My lack of public forum participation really has nothing to do with my comment. I own shares of this...although i sold most today, but im not here to bash it around, im just trying to figure out what actually occurred that caused the spike. I see they've started working with Nudge on their in-game marketing around this new free-play business model they are working towards, but other than that I don't see anything beyond announcing they are going to make iwatch games.....like 10,000 other companies. I read this section out of their most recent 10-k (posted below) and i'm curious why this doesn't concern anyone. They are pretty much openly saying that without a miracle they will have to dilute. Am I wrong?
To date we have relied on cash flow from operations, funding from our founders, and debt financing to fund operations. We have extremely limited cash liquidity and capital resources. Our cash on hand as of December 31, 2014, was $14,688, and our monthly cash flow burn rate is approximately $56,000. For the year ended December 31, 2014, our revenue was $53,677.
Our future capital requirements will depend on many factors, including our ability to market our products successfully, cash flow from operations, and competing market developments. Based on our current financial situation we may have difficulty continuing our operations at their current level, or at all, if we do not receive additional financing in the near future. Consequently, although we currently have no specific plans or arrangements for financing, we intend to raise funds through private placements, public offerings or other financings. Any equity financings would result in dilution to our then-existing stockholders. Sources of debt financing may result in higher interest expense. Any financing, if available, may be on unfavorable terms. If adequate funds are not obtained, we may be required to reduce or curtail operations. We anticipate that our existing capital resources will not be adequate to satisfy our operating expenses and capital requirements for any length of time. However, this estimate of expenses and capital requirements may prove to be inaccurate
