Trey's prediction for 2016 was to "triple revenue" compared to last year - this would equate to sales of close to $2.7 million. With the year half way over, the sales mark has been only $60k, or roughly 2% of his target.
Gross (not net income) margin is a paltry $33k, with this most recent quarterly showing being in the red by a 50% margin after cost of sales. The $4.7 net income number you reported is a result of the derivative liability gain of $6.7 million. This derivative liability is going to fluctuate quarterly based on the share price and is not indicative of the performance of the company. Subtracting out this item, the company had a net loss of about $2 million for the 1st six months - most of which ($1.5 million) is attributable to interest expense on the loans that are outstanding.
As of June 30, 2016, $2,062,129 of the convertible debentures were delinquent. Accrued default interest and penalties, where applicable, totaled $1,982,955.
At June 30, 2016, the convertible debentures and related accrued interest payable were convertible into approximately 6,698,670,000 (yes Billion) shares of our common stock - over triple the amount shown from the last quarter (2,047,943,000).
As of June 30, 2016, we had several convertible debentures and related accrued interest payable that were convertible into approximately 6,698,670,000 shares of our common stock. We have 2,000,000,000 common shares authorized and we will be required to again increase the number of authorized shares of common stock in the event all convertible debt is converted into shares of our common stock.
Subsequent to June 30, 2016, we issued a total of 18,364,000 shares of our common stock for conversion of debt principal of $6,000 and accrued interest payable of $427 - translated: $0.00035 per share
We believe that our operating expenses may increase over the next 12 months and estimate that our capital requirements for the next 12 months may approximate $2.0 million
