American Scientific Resources (ASFX)

[KJ]

Good DD Info:
Review of Facts on ASFX - Originally started in late 2008 and updated in June, 2009.

Many of you may be reading this for the first time, after seeing today’s monster increase in PPS (14.53 ↑1.40%). Well, the PPS here wasn’t always .0002/.0003 - it was .02 in Q3 of 2008 before the company had (unfortunately) to sell some shares due to a competitor screwing it over.

The Press Release of Thursday regarding Swine Flu / H1N1 is probably not the whole reason why this stock has increased from .0003 to .003.

http://finance.yahoo.com/news/Safety-Product-Company-Sees-prnews-15504232.html?.v=1

Those who have been on the board for a while, think that one of the following items is still in progress and may be one of the reasons why we’ve seen such intense volume here. We do not believe it is a P&D.

(a) audited financials of 2008 that were very good.
(b) uplisting - filing of form 10 that’s been promised
(c) audited financials for 2008 and 1Q 2009
(d) merger/partnership with a larger company who wants the Thermofocus

When the information started flow in 2008, there were a few bits of information that the group at large didn’t know. We knew the following things

(a) Dr. T was taking the company places
(b) the Company had its act together with Erika Stanczak in marketing.
(c) the company had solid thermofocus rights
(d) the company was in Walgreens (WAG 31.17 ↑1.53%), CVS (31.055 ↑0.63%), various babies-stores
(e) the company had past debt during startup times

We thought the following was happening in Q3/Q4 2008

(a) more contracts with QVC and Costco (COST 46.48 ↓0.24%)
(b) a huge amount of units ordered
(c) uplisting filings
(d) bigger company interested in investing

What we found out was

(a) Barrington Ventures (BV Medical) had sold outside of their ‘professional’ agreement and sold units to QVC and Costco Online and Walmart (WMT 48.6501 ↑0.19%). Their contract with Tecnimed states that if you breach the contract, you owe 50% of the proceeds to the person who had the rights.
(b) Exergen filed a patent infringement lawsuit
(c) KidzMedz filed a lawsuit against Technimed for breach of contract (because of BV Medical)
(d) The company was almost broke because Walgreens was withholding payment because of (c)
(e) the company had to issue 300+M shares into the float to pay its bills.

What has happened in the first quarter of 2009 since then is

(a) KidzMedz and Tecnimed have made up.
(b) ASFX has received payment from Walgreens and is bringing in about $50k a month from Walgreens and Babies-R-Us
(c) Babies-R-Us has ordered twice in large quantities and continues to order on a weekly/monthly basis.
(d) ASFX and Tecnimed are co-fighting the exergen suit
(e) There are 2 new board members. Some of us believe that Mr. Reznik is one of the note holders and has a seat on the board in order to steer the company toward higher profits.
(f) There was a shareholder meeting in New York
(g) there was public talk of uplisting in recent PR’s
(h) Swine Flu - Huge orders online for Thermofocus from ASFX over the past 45 days.

Primarily due to the BV Medical thing that happened last year, the company had a hard time paying its bills. During the settlement it reached with Tecnimed, it was relieved from all penalties and interest that it owed Tecnimed for product. The court case has been posted on the board a few times. ASFX does owe Tecnimed about $1M and is currently paying Tecnimed up-front for the cost of thermometers and is giving them 50% of all profits in order to pay back inventory costs. I believe ASFX must have found some way to satisfy its creditors in order to keep in business, and has worked out a payment plan.

No one knows what the Share count here is for sure, but the A/S is 2.5B. I believe that the O/S & Float is somewhere around 500M shares, which is why we moved so nicely today on this volume.

There are a few things that I left out, but hopefully the worst is behind us and we can continue to move forward. something must have worked itself out with regard to one of the following in my mind, because this just isn’t a P&D company.

a] some sort of partnership or merger
b] the uplisting (form 10) was finally filed
c] resolution of a court case
d] ??