Hints from the latest 10Q will give you many answers....
I realize that reading 48 pages of legal briefs written by and for attorneys is a little painful., but you can find a lot of good information in them. Such as:
Cryoport, Inc. (the “Company”) was originally incorporated under the name G.T.5-Limited (“GT5”) on May 25, 1990 as a Nevada Corporation.
-In other words, please see the rules for shareholder meetings in Nevada, not California. I have been told that they have 45 days after the end of their fiscal year to have the meeting or May 15th.
On August 2, 2007, the Company entered into a new lease agreement with Viking Investors -
Barents Sea, LLC for a building with approximately 11,881 square feet of
manufacturing and office space located at 20382 Barents Sea Circle, Lake Forest,
CA, 92630. The lease agreement is for a period of two years with renewal options
for three, one-year periods, beginning September 1, 2007. The lease requires
base lease payments of approximately $12,000 per month. In connection with the
lease agreement, the Company issued 10,000 warrants to the lessor at an exercise
price of $1.55 per share for a period of two years, valued at $15,486.
-In other words, they can move out this September. Also, see the square footage and you tell me if you think they can produce a few hundred shippers a day in just 11,881 of SF! By the way, this SF includes the office space.
In connection with the October Debentures, the Company also entered into a
registration rights agreement with the investors that required the Company to
register the shares issuable upon conversion of the principal amounts of the
October Debentures and exercise of the October Warrants. Pursuant to
the registration rights agreement, on November 9, 2007 the Company filed a
Registration Statement on Form SB-2. On January 25, 2008, the
registration statement, as amended, became effective with the Securities and
Exchange Commission. Per the terms of the registration rights
agreement, following the effective date of the registration statement, the
Company may force conversion of the October Debentures if the market price of
the common stock is at least $2.52 for 30 consecutive days. The Company
may also prepay the October Debentures in cash at 120% of the then outstanding
principal balance.
-In other words, they can find replacement financing and pay off their debentures without any dilution. I’m not suggesting that this is the case, but its certainly possible.
In April 2008, the Company issued 150,022 shares of common stock to Peter Berry, Chief
Executive Officer, resulting from the cashless exercise of 157,000 warrants at
an exercise price of $0.04 per share (see Note 9).
-Ouch-Peter Berry had to pay taxes on the difference between the current market value and the .04 cents, even though he didn’t sell the shares. Its an unfair tax rule in my opinion.
Important factors that may cause actual results to differ from projections include, but are not limited to, the following:
The Company’s ability to fund its operating expenses;
The effect of changing economic conditions impacting the Company’s plan of operation;
-In other words, they may need more money to fund their business plan and/or they may have a need to refinance their debt. Yes, Dee Kelly told me she was working on a financing agreement when I was there last week, pursuant to the 10Q filing.
I hope this helps answer some of your questions. I would also encourage all investors to do their DD and read the reports. I would also like to add that this is and will be for the foreseeable future, and speculative stock. As I noted in early January, many financial advisors recommend staying away from pre-revenue companies and/or companies with less than a 250M market cap such as Cryoport. With that said, is this an appropriate investment for your portfolio and can you wait for good things to materialize? If so, I think you will be rewarded quite handsomely.
AI
