It must be stated that if and when convertible notes are cancelled due to their legality and legitimacy, the loaner (Auctus) has the legal right to pursue the company (Endonovo) for the actual amount that they lent them. This entire process is a long and arduous process that will not be settled or finalized for many years.
Investors should not think of law suits as a way a company accomplishes success unless that lawsuit results in a claw back of revenues, profits and cash flow. In this case specifically, Endonovo's business will not benefit.
As for the company, the recent 10Q shows the share count at 1.7 Billion. That is compared to 79 million last year.
That is absurd amount of dilution in one year. That is a massive amount of dilution over a 10 year period, even a lifetime.
That shows that ENDV management has raised money using such bad terms that there is no chance of the stock ever increasing with any sustainability.
Not only did the share dilution occur, their debt is at $26 million.
ENDV raised $207,000 over the last quarter and on March 30th they only had $10 thousand which means they paid themselves back BS loans they probably claimed they lent to the company, I am sure BACKPAY was also paid among other invoices and bills and debt that probably has nothing to do with the business.
Then when you look at the top line revenue you see is $87 thousand.
How is this company ever going to repay all their debts, ever do anything close to 300 million in revenue, or even make an accomplishment that is worthy of discussion.
I am sure they will try to borrow more money but that may become an obstacle given the fact that many of the convertible guys are facing some legal issues of their own given the fact that the SEC is clamping down on them.
In conclusion, if ENDV wins any legal case against any toxic investor, it will not help their business, operations, cash flow or anything else. The best case scenario is that some of the debt may be removed from their balance sheet which currently has $26 million in debt. I also think it will be years before that ever happens and I am guessing based on their sales numbers in the first quarter, Endonovo will not be able to raise any more money and that will mean they will go dark. Going dark means no more financial filings, no more anything for Endonovo. They will just become a non-entity with the only operations being law suits against Endonovo for the $26 million in debt that they owe to many people and companies, most of which are not or have nothing to do with convertible notes.
I also think Alan Collier is going to face some legal lawsuits because of the past statements regarding the business that were probably misleading, his pro forma numbers not being ever reached and with no substance.
If you are going to be bullish and promote ENDV to the masses, please have some decency and justify your promotions with credible rhetoric or some form of ethical appeal because using terms like POTENTIALY MASSIVE POSITIVE FOR ENDV is not only wrong, its misleading and unethical by all standards.
