Since you mentioned the annual report, I decided to take a look. The licence requires a 2 million dollar fee. With no significant revenue, the only way I see that being paid on time is through dilution. Then I read some more. Did my "own dd" the company tells you over and again that they can't wait to reissue their freshly printed billion shares. All of the following was copied directly from the annual report.
On March 31, 2014, the Company and NTI entered into a fifth licensing agreement agreeing to modify the definition of Licensor Products to include synthetic leather, sealants and adhesives (“Added Applications”). In consideration for the Added Applications, the Company shall pay the Licensor an amount equal to US $2,000,000, to be paid within 36 (thirty-six) months of the execution of this Fifth Amendment Agreement. Should the Company not pay the Consideration within the deadline, the Company shall lose all rights to the Added Applications, and the Added Applications shall be removed from the Licensor Product definition.
The intellectual property used by the Company has limited protection.
The Company has incurred net losses of approximately $29,354,000 since inception, and has a working capital deficit of $6,462,971 as of December 31, 2015. These conditions raise substantial doubt about the Company’s ability to continue as a going concern
there can be no assurance that it will ever be profitable as it expects operating expenses to increase as its client base and distribution channels are expanded
The Company is delinquent in its payroll tax remittances
The Company may conduct further offerings in the future, in which case your shareholdings will be diluted.
The Company may exercise its American-European Option and additionally it’s Asia Option in the Licensing Agreement which will result in your shareholdings being significantly diluted.
AI
