The company's press release, abstracting from the quarterly SEC filing, really is fascinating:
1. It struck me as unusual that the bottom line, i.e. the loss, was totally left out of the report.
2. If the company's gross revenues were roughly $3.6 million for three fiscal quarters, that averages $1.2 million per quarter. And if management is projecting $6 million in sales for the fiscal year, that would mean that the fourth quarter would yield $2.4 million in sales, which is double the quarterly rate so far this fiscal year. I would find that easier to believe if quarterly sales had not been trending down since the first fiscal quarter.
3. Also omitted was the "going concern" commentary from the 10Q in which the company admits that the Typenex financing won't be sufficient (the recent letter from the company to potential equity investors or bondholders, which I posted earlier to this Board, tends to confirm this picture).
To me, this is a company which keeps on developing great products, keeps on innovating in marketing those products (e.g. its social media and storefront approaches), and is a leader in a booming industry...but which is a company that is living from month to month as regards its cash situation (even given the multiple tranches of the Typenex loan).
Given that the value of the stock in the marketplace is about $2 million and that the company per its own letter is seeking $1 million to $5 million, this is a company which surely looks like it is "in play." It would be interesting to see which other companies in this industry would like to acquire VHUB and at what price.
I also would suggest to the company that putting out press releases about quarterly performance that don't even mention the bottom line is not the best way to build trust within the investment community. While I disagree pretty strongly with Marchio's view about this company being "a scam" - RPH has debunked that idea with the facts on the ground - I can still respect Marchio's opinion, given how the quarterly reporting for press-release purposes omits the bottom line and contains a highly ambitious projection for Q4 sales.
