It is classic death spiral financing, I guess, but it is still sad and ironic that this company is in such a catch 22 situation. Share dilution is increasing at 35% - 45% a quarter as a direct result of the low share price, which is itself a result of Cornell debt rather than bad revenue numbers, current management, etc. The only reason why outstanding shares are increasing by 40 - 50 million a quarter is because stock payouts to directors/contractors/etc. are being calculated at such a low share price ($10,000 and $6,000 dollar payouts per annum for the services rendered by these guys is not actually a lot of money in cash ... it is just that it works out to millions of shares at current prices ... perhaps something could be done regarding a temporary halt to such payouts .. at least for the time being??).
However, if the 2 - 3 million in Cornell debt didn't exist, the share price would probably be in the 5 - 15 cent range, which would mean that the company could issue 10 - 40 million shares in order to pay off such a debt. I think the shareholders could live with a one time increase that rid the company of serious debt considering these same shareholders currently see the same increase happen every 1 - 3 months anyway.
It is obvious, I know, but it is still irritating to watch a company whose sales numbers and industry prospects range from fair to good sink into such a catch 22 hole.
jt
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