Monday, April 20, 2020 8:58:27 AM
Great Technicals, Fundamentals, & Timing Equals $$$$$$ Every time in my Eyez
GREAT POST $MART_DINERO I haven't been posting for a while but I am sure this is all I will post over the wknd because it is all That needs to be discussed from this point on in my honest opinion!!! Period!!
Summary OF CC ( I had to edit a number) This was all approved/okay with Frank (IR) everything is accurate)
1. Debt/conversions
A majority of the debt that was taken out was from 5 firms last year to cover acquisitions (i.e speed connect) They allowed 670 Million shares to cover this debt/interest. SO far 640-650 mill shares have been used so we have around 20 mill shares left of this allotment. I wanted clarification of what about all the remains debt/interest that was still on the books according to the 10k. In may we have more notes that are due. I asked Frank (IR) about this and his response was that after the 670 mill shares are used up ALL REMAINING DEBT/INTEREST will be funded through non toxic funding. ( I will revisit this when we talk about the 54 mill budget for 2020)
2 Share Structure
According to OTCMarkets as of 4/1//2020
-we have OS
793,198,634
Restricted
116,816,683
Unrestricted
595,508,091
Go back and look at the 10k (this will shed light on how much they said had been converted of the 670 mill allowed.)
615,568,695 Have been converted in 2020 (pg. 52)
40,676,035 Have been converted in 2019 (pg. 51)
Total 656,244,730
SO really they were underestimating how many of the 670 had been converted. Plus since the 10k we have already burned through the remains 14MIll shares.
I think we are currently around 650 mill unrestricted because according to the 10 K only
27,936,930 April 6. 27,936,930 April 9th ( only 55,873,860) had been converted after the update on OTC Markets which puts us close to 655ish mill) IF you go back to the only 14 mill left we need then our OS unrestricted should be close to the 670 mill that they said was allowed for these conversations)
SO all the math adds up to prove from the 10k that point 1 is right on.
3. 2020 Budget (54 Mill)
Equipment purchase and manufacturing
$16,500,000
Content Production
$3,000,000
Marketing
$4,500,000
Debt Retirement and acquisition
$14,300,000
Working Capital
$11,700,000
Anticipated Financing Costs
$4,000,000
$54,000,000
The answer to where the non-toxic debt comes from is the 14 mill for debt retirement and acquisition. They made it clear that this finances will be non-toxic. 40 mill will be REG A (private placement equity) and the remains 14 mill will be normal 5 year loan terms i.e 3.5%)
They said there will be no AS increase and NO RS!
4. Derivative loss
Now what about all the remaining conversations that are in the 10k? That is where a lot of this derivative losses came from bc a lot of interest is still on the book from 2019. Those were explained as non cash losses.
5. Revenue year over year/ cash loss
2019 were $10.2M, a 990 % increase from the prior year
These two revenue sources were from
1. 8.2 mill from speed connect
2. 1.8 mill from blue collar
They brought up the concerns of contract with speed connect and covid-19 implications for blue collar.
They made it very clear that speed connect contract is not expired and they are working with SPRINT, they mentioned covid-19 had a temporary impact on blue collar. ( They feel that majority of those contracts will be done after things improve this year so the loss revenue will not occur. Speed connect has not had an impact with covid-19)
One important point that was brought up was the fact that 2019 had only 152k Cash loss compared to 3 mill cash loss the previous year.
They talked about 5g with European Partners and there government contract divisions.
They did receive federal stimulus money to protect their company to keep it as healthy as possible.
With no more debt/conversions to worry about and no increase in AS or RS this company is severely undervalued and the RISK/REWARD will pay off IMO.
GLTA
TPTW!$!!$$$!!!!!$$$$$$$$
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