Decision Diagnostics Corp (DECN)

[loanranger]

"THIS IS WHY IT IS SO VERY IMPORTANT TO DO YOUR DD AND READ NEWS RELEASES CAREFULLY!!!!"

"Today, DECN announces that the company's Board of Directors has approved the offering of $13 million in non-dilutive debt financing, the first $2 million in Notes, followed by a $1 million credit facility to purchase manufacturing equipment for their Korean manufacturing facility, and the remaining $10 million in a revolving line of credit to finance inventory. Each of the three offerings are already subscribed to."
What Board of Directors?
There WERE two Board members until half of them, the Chairman of the Board, resigned (weeks prior to the quoted March 20, 2020 press release):
"Mr. Jagunich left the Board of Directors in January 2020 effective February 2020."

So Keith Berman approved the offering. To say that the Board of Directors approved it is one of the reasons that one should "READ NEWS RELEASES CAREFULLY!!!!"

Note that, in spite of the fact that "Each of the three offerings are already subscribed to", none of the terms of the three offerings has been provided in the release. Also note that the fact that the offerings are already subscribed to is not the same as saying that they are FULLY subscribed. I'm sure Berman knows the difference. Do you? Another reason that one should READ NEWS RELEASES AND COMPANY REPORTS CAREFULLY!!!!

"Mr. Berman commented, "If banks and finance companies insist on nearly giving money away, we will take all we can. The $13 million we seek, split by need, will carry us for the remainder of 2020."
In spite of the suggestive headline, IT IS AN OFFERING, NOT a done deal:
"DECN to Finance 2Q 2020 Roll Out of its GenViro! Covid-19 "Rapid" Kits Using Non-Dilutive Debt Financing Totaling $13 Million Acquired in Near 0% Rate Environment"

Again, no terms were provided. The reference to a "Near 0% Rate Environment" doesn't describe a term of any piece of the offering. It SUGGESTS it. All it says is that the marketplace for lending is weak enough so that SOME companies can get very cheap loans.
What are the terms of these offerings? The Board of Directors (LOL) ain't sayin'. That should make a reader pause.

And only time will tell whether ""DECN (is) to Finance 2Q 2020 Roll Out of its GenViro! Covid-19 "Rapid" Kits Using Non-Dilutive Debt Financing Totaling $13 Million Acquired in Near 0% Rate Environment"

IT IS SO VERY IMPORTANT TO DO YOUR DD AND READ NEWS RELEASES CAREFULLY!!!!

But sometimes this Company leaves it to the reader to GUESS what it's doing. One can't read what isn't written, obviously. Here's an example:
From the release:
"Prior to structuring the debt offerings, the company received an unsolicited commitment for at least $1 million in Notes and is collecting these subscriptions. Almost $500,000 has been received thus far with the remainder promised prior to March 31, 2020***"
Again, nothing specific...the lender and the terms are unidentified.
But if you read the 70 pages of Supplemental Disclosures to the Annual Report VERY carefully (Berman knows one thing...the more pages of crap he writes and repeats the harder it is for investors to "DO YOUR DD AND READ NEWS RELEASES CAREFULLY") you'll see this:
"In July 2019 CEO Keith Berman approached the company Board of Directors with a plan and offer to, from time to time, lend the company up to $450,000 through a combination of sources available to him. The Board accepted this offer, which came without precondition.
Mr. Berman made it clear that he would rather lend the company money himself or through close friends and family, than instead to sell low priced equity to small institutions. Through this writing, the entirety of this $450,000 has been rendered."

So would you guess that THAT $450,000 that Berman chose to "lend the company (money) himself or through close friends and family" is the same "Almost $500,000 (that) has been received thus far" in the "unsolicited commitment for at least $1 million in Notes"?

Because one would have to guess that. No amount of careful reading would answer the question: Did Keith Berman use this press release to announce an unsolicited commitment for $1M at unspecified terms that Keith Berman made, possibly with friends and family money? That wouldn't be a bad thing necessarily...it might show some confidence in the Company. So why be so vague? Why make us GUESS?

It's a common practice of this CEO. It serves as a protection against any subsequent questions. He does his level best to make doing your own DD via his filings and press releases an exercise in futility.

The most obvious example of such shenanigans is announcing the approval of a Corporate Action by a Board of Directors while neglecting to mention that he is its only member and that the only other Board member had recently resigned. It's bullshit.