Updated PTCL DD >>, It cost PCTL $1,956,774 to make $534,852. They LOST $1,421,922 just from the cost of their business operations, before you even start factoring in the book value the company lost because they had to rely on toxic debt to keep the company afloat.
They only had $6,669 in cash and $4,803 in inventory.
Obviously that isn't enough to take care of any increased demand for product. They will have to borrow a lot of money to pay for the increase in costs to meet the demand.
The reason PCTL has the liability issues is because the only way they can raise money is through toxic funding.
PTCL is already TOXIC.
They had $1,334,040 in toxic convertible debt on the books as of September 31, 2019. That won't be paid back in cash. It will be paid back with more free trading discounted stock.
From October 1, 2019 through March 25, 2020, the Company issued 265,453,351 shares of common stock upon the conversion of $286,043 of principal, $20,306 of interest, but that still leaves them with over $1,000,000 to go.
It is going to take a massive amount of new sales before they even come close to breaking even.
The subsequent events section of the 10Q already shows that they have been adding more toxic financing to the books as recently as this month:
Quote:
On March 2, 2020, the Company entered into a convertible promissory with a non-related party for $45,000 of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $42,000. The note is due on March 2, 2021 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date.
On March 5, 2020, the Company received an additional tranche of $30,000 pursuant to the convertible note described in Note 6(i). The additional tranche consisted of a $3,000 original issue discount resulting in cash proceeds to the Company of $27,000. From Note 6(i), the Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date.
As of April 6, 2020, the Company sold 270,000 Series C Convertible Preferred Shares for $270,000. From the designation section for the Series C Convertible Preferred Shares, each Share shall be convertible into shares of the Company’s Common Stock at a price per share of $0.01 (1 Share converts into 100 shares of Common Stock), at the option of the holder thereof, at any time following the date of issuance of such Share and on or prior to the fifth (5th) day prior to a redemption Date, if any, as may have been fixed in any redemption notice with respect to the Shares, at the office of this Company or any transfer agent for such stock.
That is some very, very toxic financing.
That's not what a company does that has a money making business. They don't continue to dilute the stock with toxic financing.
