I just read the 10Q multiple times to make sure that I wasn't missing anything. I don't have a dog in this fight anymore because I sold everything at .09 before the RS. However, I will let you guys know my opinion on the 10Q because the OTC is a cesspool and if you are going to invest in companies listed on it you should find every bit of information you can and regardless of whether someone is bullish or bearish you should listen to what they say in order to make a more informed decision. That being said. I would sell every share I held in this company as fast as I could. That 10Q should be a flashing red light to anyone looking at this company. The biggest issues is that as stated per the 10Q SOLS owns nothing. They buy the the Blockchain servers from EL and then resell them.
Also, stated in the 10Q is that EL plans on merging with SOLS but may not due to unforeseen issues.
"Eagle intends to merge with the Company; however, there can be no assurances, that this will occur."
The next red flag is their current balance sheet.
"As of September 30, 2020, the Company had a working capital surplus of $485 and negative retained earnings of $2,449,033"
"Subsequent to August 5, 2020, our funding has been provided by Eagle, a related party. Subsequent to the change of control on August 5, 2020, we generated revenue of $135,000 from the sale of custom servers to a third party; however, we did not record any profit on the transaction."
So this brings up a question. If EL is providing the funding for SOLS to conduct operations what are the terms of that financial relationship. It isn't mentioned anywhere in the 10Q. This 10Q looks like a 12th grader who just took a finance class prepared it.
This entire scenario with Don owning Probability and Statistics
(which we know is a profitable business), yet he creates Eagle Labs (who is the supposed owner of the blockchain server and it's intellectual property) months before buying SOLS in order to take eagle labs public however DON still hasn't merged the companies and HE OWNS BOTH COMPANIES doesn't add up. There is no legal reason that is stopping Don from merging them. So why hasn't he.
So basically when you invest in SOLS you are investing in a shell company with no assets other than what it buys from Eagle Labs with the money that Eagle Labs provides SOLS with. DOES THIS NOT RAISE RED FLAGS WITH ANYONE ELSE. Here is the problem with that. Don can sell the servers to SOLS, SOLS incurs all the debt of buying them and then reselling them while EL profits on selling the servers to SOLS with no overhead other than the production of the server. (which was not stated in the 10Q) So at this point in the business. This entire thing is a shell game. The question is why did he create EL to merge with SOLS and then not merge them and also why did he not use P&S to merge with SOLS. That part doesn't make sense. Also, since SOLS is now a public company they should disclose their funding terms with any outside sources. Simply stating that EL provides their funding is not sufficient.
The FINAL and BIGGEST red flag is the current valuation. Now that we have a 10Q there is no more guessing. SOLS is worth $135k as stated by their current assets. The question you have to ask yourself is, are you willing to value SOLS at $2.1 BN dollars (fully diluted) or $28 million (current OS) even though they have only $135k in assets. This is the equivalent of investing in a lemonade stand that said they're worth a $1,000,000 even though it makes $100 a month. If you wouldn't invest in that lemonade stand valued at $1,000,000 you shouldn't invest in SOLS either.
Finally, there will be dilution. It is stated in the 10Q just like every other startup. If you think that DON will be able to obtain financing valuing his company in the millions with only $135k in revenue you're crazy. So that leaves Don with only one option to finance SOLS...DILUTION, and as tiny as the float is if he sold only 1 million shares in equity financing it would tank the SP below $1. But I will tell you this their is no finance company that would give him equity financing at $7 a share, it will be more like .004 a share. Value of current Assets.
