An ABSOLUTELY INCORRECT claim here IS:
"There is no more dilutive debt and an 13G proves it"
It is nonsense to write such a claim and it is even deeper nonsense to believe it when there is proof in their 10K that dilutive debt remains.
Allow me to "take you to church" and explain:
Of course there is dilution. SFOR has $13 million dollars in convertible debt. Do you know how many shares $13 million bucks in debt turns into at $0.0008?
I've done the math for you;
FOURTEEN BILLION FOUR HUNDRED MILLION, FOUR HUNDRED ANF FORTY FOUR THOUSAND SHARES!
YUP! That's right folks...
Those of you who wrongly believe that the latest 13G means there is no more dilution, need to seriously be quiet, and take a lesson here.
A 13G is a divestment statement. It basically says that someone, using some feature, had invested (usually through the purchase of debt features) in SFOR and they no longer hold that investment.
DIVESTMENT STATEMENT!
Now... Open up the 10K.
Start on page 30 of the latest 10K.
Every single convertible debt agreement listed there was a balance as of 12/31/2015.
Now we know that SFOR DID PAY OFF SOME VERY TERRIBLY DILUTIVE DEBT FREQUENTLY REFERRED TO AS "Toxic Debt". They used their MSFT settlement to pay that toxic debt off. We all know this and kudos to management for doing so.
We also know that their proceeds, net of fees and costs was $4.9 million. Simple math tells us that even if they allotted 100% of the proceeds to paying off warrants or convertible debt features, they would only have paid off about 30% and would still have a CVN balance of over $9 million in CVN debt or Warrants or Units.
WE ALL KNOW THAT SFOR DID NOT ALLOCATE 100% of the proceeds to debt so we all SHOULD KNOW that SFOR still has dilutive debt.
Any debt that can convert to shares is dilutive. NO DEBATE! IT IS DILUTIVE DEBT!
You can choose to keep believing there is no more dilution. At this point, if that is what you choose to continue to believe, that belief flies in the face of proof that dilutive debt remains, and via that debt, dilution still remains.
Or
You can choose to now believe that there is still dilution and further risk of dilution. You can also choose to not be so bloody afraid of it. Convertible debt isn't that big of a deal. It all depends on how well management handles it and here's the good news, I mean really good news: management has already proven that they'll pay off debt with cash when they can BECAUSE THEY'VE ALREADY DONE SO!
After all this, if you still choose to believe there is no dilutive debt...if you've gone to the 10K and seen the list of convertible balances for yourself. If you've seen there is NO WAY SFOR paid all of those balances off. If you still want to argue with me... Then please just don't. Just go hit your punching bag, go throw your laptop, go for a run... Do something else that is smarter than debating a fact with someone who clearly knows more than you and is simply trying to explain it.
I'm long SFOR. I'm bullish the stock. I've been buying the stock all morning and I'll buy at $0.0007 and even at $0.0006. I'll sell the whole bit if $0.0006 support fails and try again at a lower price. I don't think that'll happen though. I believe my $0.0006's won't fill and think I'll be lucky if the $0.0007's fill before a run that I'm anticipating.
Why am I buying if the first part of this post sounds so "basher"?
Because I'm not afraid of debt. Not afraid of dilution. Just because you're afraid of it, doesn't mean you should ignore its existence. And just because you're afraid of it, doesn't give you the right to propagate a known lie any further .
Insert smiley face
AI
