Here's some of my home work for you and the guys on AVVW!!
This is what I like!! The increase year over year in R&D and selling!
Research and development 1,237,414 -- 20,167 -- 19,240 -- 123,402 -- 114,740
Selling, general and administrative 10,271,922 -- 465,899
This is also a nice plus---Pursuant to two separate License Agreements entered into on September 1, 1999 and February 1, 2002, the Company has been granted by the Inventor of certain products known as Neuroskin, Nail Fit, Razor Rash, Dermac and Itch-X, the sole and exclusive right and license to manufacture, produce, package, distribute, market, promote, use and sell, among other things, certain human and animal skin care treatments and products. These products have received acknowledgement from the US Food and Drug Administration (“FDA”) as compliant products for over the counter pharmaceuticals as well as cosmetics skin care products. Canadian DIN approvals for these products have been renewed and will be activated 30 days prior to initial sales in Canada. The license rights include all countries in the world with the exception of Germany, Switzerland, Austria, Netherlands, Belgium, Luxembourg and Lithuania.
This is where the diliution comes in for the 750 mill!!(a) (iv) In accordance with EITF 98-5 “Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios”, the Company recognized the intrinsic value of the beneficial conversion feature of $213,941 as additional paid-in capital. In addition, in accordance with EITF 00-27 “Application of Issue No. 98-5 to Certain Convertible Instruments”, the Company has allocated the proceeds of issuance between the convertible notes and the detachable warrants based on their relative fair values. Accordingly, the Company recognized the fair value of the detachable warrants of $446,059 as additional paid-in capital. The fair value of the warrants issued were determined by using the Black-Scholes option pricing model assuming an expected life of five years, a risk free interest rate of 4.07%, an expected volatility of 111%, and an expected dividend yield of 0%. The Company accreted in full, as at May 31, 2006, the interest expense over the term of the convertible notes of $660,000 resulting from the difference between the stated value and carrying value at the date of issuance. During the nine month period ended February 28, 2007, interest expense of $nil (February 28, 2006, as restated - $493,643) has been accreted. At May 31, 2006, $340,000 of the $660,000 convertible notes had been converted into common shares leaving a balance of $320,000. During the nine month period ended February 28, 2007 an additional $163,824 was converted into common shares leaving a balance of $156,176.
From what I see the 750 mill will cover it all, then it can move up.. did alot of reading last nite I really can't find any reason not to buy at these prices .001-.002 (MHO ofcourse). From what I see there makeing an honest attempt to market there product and its an awsome product at that ONE OF A KIND!. My advise is to buy and hold for at least a couple of weeks, got a strong feeling they will PR something nice about sells!. I really like the Pet side of this thats always a plus.
