Image Protect Inc (IMTL)

[tedpeele]

It's too bad what happened here, and continues to happen.

I tried to gently warn people a couple of times about the .0008 financing - the problem was that while IMTL used to have a very small cash burn it went up dramatically in Q2 to almost $1m in cash used, and then dilution kicked in even more dramatically after Q2 closed.

It really isn't clear from the Q filing if the cash burn should be expected from here on out, but the .0008 filing does clearly imply that they feel they need a tremendous amount of cash to roll out their plan.

I'm skeptical because they didn't need to do it this way at all. It has been worse than the typical toxic convertible. IMO management has been incredibly unkind to shareholders in terms of their communications and actions. I hate it when management does things like that as hit hurts us retail investors.

I tried to reach out to them twice. No answer. Participants in the financing have made out like bandits..

People justify it with the business plan. I'm no longer convinced that it is what it seems to be. Kodak especially. But, maybe it's as good as hoped.

At least for the short term I think they will continue to roll things out and announce them, but without having much of a window into their cash needs it's very hard to predict. So far it has been pretty clear that every time the stock moves up it comes back down fast and hard.