Tony finally files 10Q a month late
Well lets see.
1. On 12-31-2008 they had $ 456,000 in cash. On 3-31-2009 they had $ 3
2. On 12-31-2008 they had $ 383,000 in account payables and accrued expenses (still unexplained BTW). On 3-31-2009 they had $ 684,000 of accounts payable and accrued expenses.
So in 3 months Tony and his few buddies spent about $ 757,000 if my math is right. We know they paid David Dadon $ 260,000 (actually looks to be $ 250,462) for part payment on his "option" but that still leaves about $ 500,000 still unaccounted for. That is over $ 165,000 a month spent by Tony and his 2 employees in first quarter. Where did it go?
With $ 3 in the bank on 3-31-2009 its no wonder that directors Nelson and Figlewicz resigned on 4-1-2009 and 4-10-2009.
Dadon converted 2.2 million of the 16 million in debentures on the "option" into 4 million shares of stock and got another 1 million shares in payment for the 160 acres actually purchased. This raised the outstanding shares from 1.8 million to 6.8 million with Dadon owning 5 million of those 6.8 million shares. So Dadon now owns over 70% of the outstanding shares of GSTY stock.
As to the number of "fully diluted" shares that has ballooned to over 35 million shares with the convertibility feature of the debenture for the "option" opening the door for millions (my math says about 5 million) of cheap shares (apparently $ .05 each if Figlewicz filing is correct) for Tony and the boys based on his 10% deal and their 2-3 % deals.
The biggest joke is valuing the $ 16,000,000 "option" as a $ 16,000,000 asset.
The other "funny" parts of the filing are:
On May 1, 2009, the Company completed a $300,000 loan with interest at 10%. The loan is collateralized by a portion of the Company's land and is due on May 1, 2010.
The Company is in the document preparation stage for an additional loan of $1,100,000 which will also be collateralized by its real estate.
Since the company only owns 160 acres that is all they can collateralize. My guess is that the only one who might make this loan is David Dadon as he would then have grip on all of GSTY assets with 70% stock ownership and all land tied up in his financings. But that is just a guess. maybe Tony will give us an 8K and explain. (Sure).
The 1.1 million is anybody's guess and I feel this may become just another of Tony's "Safe Harbor" statements before its over. Don't believe anyone is going to lend a million on an option, but maybe Tony is once again wooing Marat Safin and the Marr Group. Or maybe ghe still has David Firestone "backing" him. A third possibilty might be that Tony has convinced Magic Johnson to spend 1.1 million of the 2.25 million Tony paid him for 2 days work at Calypte to invest in his wind project. Lets face it when it comes to wind Tony is your man.
$ 3 you say...
