There is no doubt about the selling
It is escalating it anything. This filing had Barbara selling another 1,250,250 shares for proceeds of $22,339 and Dennis is unloading at a faster pace. He sold 1,374,752 shares for $24,013 in proceeds.
The one positive is tomorrow is the final day of their selling for 2 weeks. Hopefully the share price can recover a little. My bet is at the end of tomorrow the share price will hit a low and recover to nearly $.02 in the 2 weeks. Then the price will begin falling again.
I have said several times that the selling may or may not be indicative of the the future results but it definitely causes a share imbalance.
In the companies eyes and it is likely the best way to pay Chang. It increases the share count as they issue shares at $.005 but in their books it costs the company a small amount. Chang immediately sells and gets paid a much larger sum. HIs last payment was 10M shares at $.005. To the company is uses no cash. just another increase in shares. Emil doesn't care. He gets 40% of any settlement. His share count increase for those shares annually. Chang loves this. he gets 10M shares and sells immediately. Rather than a board member pay he sells immediately the amount needed to pay for the shares. I think he is being overpaid to be a board member, Not sure what else he is doing for the company.
for the last 3 qtrs he received 5M shares on 7/5 and 5M in Oct and then 10M in Jan 24. Sold those shares immediately. I assumed he will sell the remaining 5,750,000 shares not sold yet at $.0165. Proceeds of the 20M shares will be $416,311 with a profit of $316,311. If you add one more qtr on that even if it is 5M shares he will make approx $400K on his shares plus whatever annual salary he receives. Add to that his salary of $49,000 in 2023. I bet he works a total of 100 hours a year as a board member. His sole job is to rubber stamp what Emil wants.
The 10K says it all about this company. Internal controls are not in place Here are the comments.
1) Lack of segregation of duties. Now, our resources and size prevent us from being able to employ sufficient resources to enable us to have adequate segregation of duties within our internal control system. Management will periodically reevaluate this situation.
2) Lack of an independent audit committee. Although the Board of Directors has an audit committee it is not comprised solely of independent directors. We may establish an audit committee comprised solely of independent directors when we have sufficient capital resources and working capital to attract qualified independent directors and to maintain such a committee.
3) Insufficient number of independent directors. Now, our Board of Directors does not consist of a majority of independent directors, a factor that is counter to corporate governance practices as set forth by the rules of various stock exchanges.
4) Insufficient period-end balance sheet reconciliations and review of journal entries. Due to our size, we have insufficient accounting staff resources to review accounting entries on a timely basis. Management will periodically reevaluate this situation.
5) No formal codes of conduct. Due to our management remote working in different locations, we can not ensure that our management involve in day-to-day operations and regular communications of ethical and appropriate behavior.
I just pray that I am right and it runs as the trial gets closer. When it does I am out. I hope with a decent profit. There are red flags everywhere and I have no confidence in management at this point.
I want a run to $.05 and I will sell. Hoping that can happen this summer prior to the trial date moving again. Hope it doesn't get delayed until Aug just prior to the trial.
