Digerati Technologies Inc (DTGI)

[BIOCHEMUP]

DTGI:

I like the story that is unfolding here with the latest acquisitions and the space it tries to fill in with unified communication services for small and medium-sized businesses.

Though, when looking at their latest 10Q (12/19) I must say there is a lot of toxic debt surround this stock.

Our current cash expenses are expected to be approximately $95,000 per month, including wages, rent, utilities and corporate professional fees. As described elsewhere herein, we are not generating sufficient cash from operations to pay for our ongoing operating expenses, or to pay our current liabilities. As of October 31, 2019, our total liabilities were approximately $7,722,000, which included $1,302,000 in derivative liabilities

Since the Company’s inception in 1993, Digerati has incurred net losses and accumulated a deficit of approximately $86,828,000 and a working capital deficit of approximately $6,379,000 which raises doubt about Digerati’s ability to continue as a going concern

We estimate that we need approximately $500,000 of additional working capital to fund our ongoing operations during Fiscal 2020. We used proceeds secured from convertible promissory notes to pay for operating expenses and we anticipate raising additional debt financing to meet our working capital needs

$13M revenue annually after acquiring Nexology sounds great, but DTGI management is challenged with the amount of convertible notes surrounding it. Will DTGI revenue accelerate fast enough to take care of all of this debt is my question to fellow shareholders?