JNS Holding Corp (JNSH)

[Neophius]

I had a few free minutes, so I decided to read the latest CCGI S-1 that was recently filed.

It had a few interesting tidbits, until I stumbled on the financial summary for the "period ending last 9 months 2017".

You can feel free to go and read the breakdown, but I won't bore you with it here. To summarize:

As reflected in our unaudited condensed consolidated financial statements as of September 30, 2017, we had a cash balance, a working capital deficiency and an accumulated deficit of $9,062, $67,198,792 and $182,206,113, respectively. During the three and nine months ended September 30, 2017, we incurred a net loss of $93,620,432 and $101,134,331, respectively. These factors raise substantial doubt about our ability to continue as a going concern within a year after the issuance date of this filing, as expressed in the notes to our condensed consolidated financial statements. Historically, we have been able to raise funds to support our business operations, although there can be no assurance we will be successful.

Wut? Huh?

That made absolutely no sense, until I read further on.

Other Expense


Other expense increased by $92,256,491, or 68,715%, from $134,260 for the three months ended September 30, 2016 to $92,390,751 for the three months ended September 30, 2017. The increase was primarily due to an increase in the non-cash change in fair value of warrant liabilities of approximately $71.8 million, which was primarily attributable to the quantity of warrants held by our Executive Chairman not being subject to our Reverse Split, which, as a result of the Reverse Split, caused them to increase in value. The increase in other expense was also attributable to a loss on settlement reserve of $12.5 million, which was primarily related to our default on our note with JMJ, as well as a non-cash loss on inducement of $7.6 million which related to exchange agreements whereby the value consideration received by the counterparty exceeded the carrying value of the liability.

HOLY MOTHER OF GOD. I knew they were exempt, but I hadn't looked into the numbers involved.

So, to recap, they now have a working capital deficiency of $67,198,792, and have already started selling hundreds of percent more shares than the current post-R/S float to cover warrant liabilities being exercised, the vast majority of which were created as a direct result of allowing Preferred C shares to not be R/S, directly enriching the CEO.

Oh, they defaulted on the note to JMJ for added hilarity.

Oh, they haven't been able to pay their taxes. Yep, go check it out; they're accruing fines on top of their taxes because they're very delinquent and will have to rely on more capital infusion (i.e., selling those delicious shares) just to pay them.

I have a few issues with Brian, but Jesus Christ this is criminal. I'll take Brian Howe's deficiencies over this horror show.