Just had to work out the numbers... :)
If they had sold ~$650,000 at the beginning of June ($650,000 / $80,000 is 8.125 months. BUT I'm sure they have spent money on other things in preparation for the diving season since they weren't likely spending 80 grand/month in January), that leaves $350,000 for the remaining 6 months of operation in the year ($1,000,000 limit in stock sale per year via 504D). All this has pretty much been stated previously.
$350,000 / $80,000 = 4.375 months. Therefore, in order to continue monthly operations after 3 more months (since June is now behind us), Wilf HAS to sell property and/or figure out alternative funding methods (e.g. salvaging mercury from the DR wrecks). Otherwise, we have to go dormant for a couple of months before next year picks back up and the sale of stock can resume. This, of course, does not include cash-on-hand before/after the current/future sale of stock. So, if Wilf had $800,000 in pocket at the start of the season (for the purchase of the new boat(s) or cushion room, which seems intelligent - if possible), things could be much better than what I mention here. Surely, he has some sort of reasonably sized cash reserve on hand (seems you'd have to be crazy or in dire straights not to do this).
To explain it in a different way, $350,000 @ 2 cents a share is 17,500,000 shares of stock. At 1,000,000 shares a week (if the stock price holds ~2 cents), that gives us another 17.5 weeks of dilution. Not a pretty picture.
If the price of the stock goes up significantly, all of this changes drastically, of course. If it continues a downward trend, I don't really see much changing regarding the time period of the dilution.
Lastly, DON'T TRUST MY NUMBERS. Please double-check them, and correct any of my mistakes or inaccurate assessments.
Off to fill the day... the Money 101 board sounds nice. :)
Understand the present. Create your future.
