InterCloud Systems Inc. (ICLD)

[Navin R. Johnson]

All are reasonable questions, and the main point is that new tech companies are notorious for going into the red as they grow the business. And with Dodd-Frank, conventional financing is no picnic anymore, so a company needs to be creative with borrowing by issuing convertibles and high interest loans to finance the start-ups of each business division.

Look at Coupa Software... they had a 60% increase in revs to $133M last year and still lost $34M. And they are a $1.3B company.

So diluting shares to pay off notes was the best alternative to ICLD in the immediate term to lower the debt, and it has been very successful over the past year.

I also would be pleased as an investor that the management made the related party loans and approved a R/S instead of increasing A/S to 5B-10B shares.