Unfortunately they are not making any money. Even if they post A/F's what are they going to say. After we paid all our bills, employess and taxes we are in the red. And now we are more in the red after aquring Digital 440. Unless of course they are buying it with shares, restricted or not it will end up as dilution. This is the reality this company is living in and it is showing in the PPS.
Does anyone know how this ran to .27 last time. They put out one of those updates on transaction revenues except they failed to mention it was transaction revenue and called it real revenue. This thing took off like a rocket. Two days later they put out a retraction and clarification PR and it died just as fast. They also stated in the retraction that they were making 3% on the gross transaction fees. That did not sit well with the hype.
Read this PR. They are not making any money. In fact they are making less than they originally started. Back when they started putting out these transaction revenue PR's they said they were making 3% on gross transaction fees. Now it is less than 2%.
Again this new PR does nothing but hurt the company because you need to ask yourself how are they paying for this aquisition? Going into debt? Paying with stock? Ouch. Not good.
SafePay Solutions Corporate Update
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PRNewswire
11:14 a.m. 04/24/2007
NEW YORK, April 24, 2007 /PRNewswire via COMTEX/ -- SafePay Solutions, Inc. (Pink Sheets: SFPS) is pleased to present the following corporate update.
As previously announced, management intends to deliver audited balance sheet and profit and loss figures for prior periods soon and to deliver similar data for future periods on regular intervals. Additionally, we are pleased to announce that we are very close to the deployment of our comprehensive real-time accounting module.
However, in order to provide our shareholders with as much information as possible, as soon as is possible, we have undertaken a concurrent process to generate an interim tabulation of our financial results through the end of Fiscal Year 2006.
Although these figures are preliminary in nature, and subject to change, it seems clear that total processing volume for 2006 exceeded $40,000,000. On initial inspection, it also appears that SafePay earned a gross margin on total processing upwards of two percent. Gross margin is reduced by any or all of the following expenses: GS&A, costs of goods sold, salaries, maintenance, royalties, license fees, bad debts and/or allowances for bad debts and other expenses; and further reduced by taxes, depreciation, amortization, interest or other, as yet, unspecified deductions, charges and adjustments that may or may not be dictated by our accountants and auditors.
While, at this point in the process, it is not possible for management to state SafePay's net income, if any, we are working diligently to complete this process and will report results as soon as fully auditable profit & loss statements and balance sheets become available. Audited numbers through July of last year are also close to completion. More news regarding these developments will follow.
AI
