My My My…interesting that several “key points” have not been disclosed regarding this amazing “Q1 report.” Let’s share the REAL numbers instead of picking and choosing what is relevant.
After this so-called $100k profit from expenses…let’s look at the numbers after operating activities. Adjusting this “net income” to net cash there is $150K+ worth of inventory that needed replacing so now SFLM is $50k in the hole. But wait there is more. Nearly a quarter million dollars needs paid to shareholder loans and another $100k+ to other loans…and what do they do to stay afloat? Yes nearly half million in dilution (paid capital is the fancy term) to just squeak by obtaining just enough cash to run this cycle over and over. How come key points don’t point out this company is about $2 million in debt?
Or how about this (reported by SFLM themselves)? “Going Concern: As shown on the accompanying financial statements, the Company has incurred continuous losses from operations, has accumulated deficit of $1,906,748… These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is currently seeking additional sources of capital to fund short term operations through debt or equity investments. The Company however, is dependent on the ability to secure equity and/or debt financing and there are no assurances the Company will be successful. Therefore, without sufficient financing it would be unlikely for the Company to continue ”
Sounds like SFLM’s motto is: Continued Dilution is the Only Solution!
