This is the problem when you have smart faders that don;t know how to read financial disclosures, so I will spell it out here.
You can lose $4.8M 2 ways - you can raise the money and spend it all - or you are FORCED to account for the stock you issue which gets booked to losses. Its that simple. The company only raised about $400K from convertible debt - it didn't even raise $500K in 2015. All the losses are attributable to the way the government requires the company to account for stock issuances. Thats all.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.