Blue Biofuels Inc (BIOF)

[LTE]

wiseone01, very good research.

I will add to my comments about the cash.

Unless there is an explanation as to how
much money is going into raw materials (cost of goods to
run the pilot equipment) this could turn into a sad
situation. We know what it cost to buy the equipment = $217,084
as exampled below.

Why is there no guidance from management as to what's going
on with the pilot plant = Ek Labs? Is it fruad?? I can't
prove anything because I don't have enough information. BUT
it's the lack of information that's disturbing.

Giving them the benefit of the doubt (because you're innocent
until proven otherwise) this company might put a token
amount into equipment for their science projects. They put only
$217,084 into property and equipment since the beginning of
the year according to today's 10-Q.

But on the other side of the cake, they put $2,338,663
into general and administrative expenses in the last three
months alone. That is one reason why debt went up so much
but cash did knot. Most of general and administrative expenses
go into rent and salaries check here:

<<General and administrative expenses include rent, utilities, insurance and managerial salaries.>>

http://www.investopedia.com/terms/g/general-and-administrative-expenses.asp

So these fat cats are apparently issuing "death spiral financing" to pay themselves whereas the shareholders will get screwed because the financiers will probably get repaid in heavily discounted stock that the sharholder's own!