Good morning,
I own this issue and have a few million, so I am going to chime into this issue which I generally don't do for such a blotted and non-bid company.
I'm going to be upfront with this board and the cheerleaders who continue to bloviate beyond rational thinking.
First let me say that PSRU is an interesting company with some very interesting titles in their library and various cable and television entities. They have many irons in the fire and appear to have a global reach with their business model and yes, Mr. X had an issue in the past. That doesn't matter in the current environment since that negative has been resolved and I can say this with certainty that if it was a serious infraction he would never have been tied to anything that resembles a public company. Enough of the on-slot attacks on the CEO and just let it rest.
Now let's get into the inner workings of the company.
The debt really isn't that much of a real concern, but to say there is no debt is incorrect. First, they have long-term liabilities totaling $1294.00 of which half is a convert due in July 2024. These carry an interest of 8%.
Assets are mainly titles and such which amounts to $17m. However, these are not fixed assets, which the company has no fixed assets ( real value like real-estate or tangibles) and true value is really based on arbitrary or what the bean counters assess.
Their rev is around $1m annually, but they have a burn rate monthly that comes doubles twice the Rev. on a yearly. One such cost is the NFT Fungy cost $613K. This cost is tied to a convert with $500K with Net Savings Link Inc. which is due in July 2024. Now how this is covered remains to be seen, but you can assure that it will be shares.
Their monthly burn rate is $175K, but their accounting does realize write offs and other accounting practices. In other words, the company is by no means a solvent enterprise.
The share structure and ROI for shareholders.
This is the area where we have a major problem with respect to shareholders' ROI.
The O/S is 12B give or take on A/S of 22B. The reason why the A/S is 22B is the protection of the Preferred A,B,C mainly. I will leave the conversion of said preferred to your discretion. It is quite a rate.
Now with what the company states that No R/S is in the cards. I feel this may be the statement currently that they do not want to implement one, but that has in the past been a statement by many companies that do exactly that, but we will see.
They have announced a buyback. I find this to be somewhat overstated since the revenue doesn't come close to a buyback or anywhere close in the foreseeable future. I see a R/S probably sometime in the late fall.
In if this does come to fruition the split will be in the neighborhood of 25,000:1 or higher. The O/S is just way too high, and one cannot justify that a company can continue on this projectory and expect ROI.
Share price:
In the pinky arcade even the most unbelievable can happen, but the projections on this thread by a few are almost an insult to one's intelligence.
The O/S is 11,727B at SP of .0001 = MC $1,176m. Now this is in line with REV. meaning fair value.
The penny arcade does not recognize or even lays out certain financial accounting measures when they analysis the financials of a company. The accounting is straight up actuals and not P/E or ascribing practices.
What some on this thread saying or even suggesting that this issue is marked for copper or .01 to .05 per share is ludicrous. If this issue is priced at .01 would give it a MC of $107m. This is not even remotely possible.
Under the current structure the most one can expect the share price to move to is .0005. This will be achievable through two events. One being a major buyback and the other is the announcement of the ending of the current note.
Since Sept 2023 to current, the company has increased the O/S by 1B shares added monthly. Now as I am writing this article the company appears that a bid may be forthcoming this week. I noticed that the ask is sitting at 73M, and this has been the lowest figure yet. So maybe we will see a bid. But I am sure the churning for profit is going to between .0002 to .0005 and a lot of volume. Remember all these shares that were being sold went into retail hands and they are sitting at .0001 with billions of shares. Most of these will churn out long before we get to .001 let alone to copper.
Let's keep it real and stop the hyperventilating or bloviating since this issue is a trading not an investment grade company, not be any stretch. Could this change, yes, but not under these extremely huge share structure that is beyond rational reasoning.
Have a good day.
varok
AI
