FWIW, based on the 8K that just was issued and can be found right on this website, I did two "quick and dirty" annual percentage rate calculations. To save anyone the trouble of reading further, my estimate is 90(NINETY!)% for the annual interest rate of the BofI loan and 45% for the annual interest rate of the Typenex loan.
If anyone does want to read further, here are the details on the calculations should anyone want to check my work (but please have some mercy on me, as these are estimates and my CFO days have long since passed):
1. Regarding the BofI loan, the total interest is 40K, the average amount of money being borrowed is about $88,000 (i.e. half of the total being borrowed, since there is a principal component to each business-daily repayment), and the term of the loan is roughly half a year (126 business days multiplied by 7/5 to account for weekends comes out to about 175 calendar days). So the math works out to be roughly 40K/88K X 360 days/175 days, which gets us to about a 90% annual percentage rate.
2. Regarding the Typenex loan, the calculation is simpler - 45K interest on 200K principal borrowed for half a year, so 45K/200K X 2, which is about 45%.
If anyone wants to do the precise calculations, or if anyone finds errors in my calculations, I'll be appreciative (and apologetic as regards errors).
As to what this all means, I guess the question is whether you'd rather endure enormous interest rates for a short time or dilution forever. Whatever your preference, the key question remains what will be the terms of the new equity financing sought by the company's e-mail of roughly a couple of weeks ago. I think the pause in the climb of the stock probably has to do with a "wait and see" attitude as regards the issuance price of the new equity, and that curiosity/concern has trumped other fundamental factors - and even the positive technical charting factors - for now.
