Thoughts on the 10Q...
1) Parsi is a joke of a CEO. This has always been obvious, but the 10Q confirms it. The guy is a stock broker. He ain't no CEO. I'm sure 3/4 of this message board is better suited to run the company.
2) Parsi is, it appears, a bit dishonest at best and a complete huckster at worst. He's on the record claiming that all of these people are trying to franchise, how they want to do business with him, and yet he's run the company so far into the ground that he's had to issue 100M+ shares with only two locations to show for it.
3) I think we can finally put to rest the notion that Jillian (and Tia) invested their own money into the company. It was an absurd thought to begin with, but some here seemed to cling to it. The 10Q clearly states that 5M shares were issued by the company for their promotional services. What it does not show by any means is the injection of capital into the company that would be indicative of a significant celebrity investment.
4) All the bad stuff out of the way, there is some good news. As John Kent mentioned, the downward pressure from the toxic notes should be decreased. That's a step in the right direction.
5) They settled the lawsuit as well which eliminates a significant contingent liability.
6) Taking into account the closing of the Century City location, I believe the 10Q stated that year to year net sales increased by about 4% at the remaining locations. This demonstrates there is still sufficient demand/increased patronage. which is crucial when convincing future investors that there exists demand beyond the Los Angeles area.
As for the share price: it is what it is. Tomorrow it may drop a bit, or it may go up a bit. Who knows. But long term, nothing's really changed. We have a buffoon piloting this ship and we have to hope he either figures it out or figures out how to get to calm waters before we all sink with him. The "good" news is that none of the more competent managers have left the company so there's still hope.
