Questions about 10Q
INCEPTION
(JANUARY 1,
2009) UNTIL
MARCH 31,
2009 2008 2009
---- ---- ----
Costs and expenses
General and administrative expense $ 276,220 $ -- $ 276,220
Stock option and warrant expense 74,639 -- 74,639
------------ ------------ ------------
Total costs and expenses 350,859 -- 350,859
------------ ------------ ------------
Net loss from operations (350,859) -- (350,859)
------------ ------------ ------------
Other income (expense):
Interest expense (342,401) -- (342,401)
------------ ------------ ------------
Other income (expense) (342,401) -- (342,401)
------------ ------------ ------------
Net loss before income taxes from continunig operations (693,260) -- (693,260)
Provision for income taxes -- -- --
------------ ------------ ------------
Net loss from continuing operations (693,260) -- (693,260)
Loss from discontinued operations (120,881)
------------ ------------ ------------
Net loss (693,260) (120,881) (693,260)
Preferred dividends (264,082)
------------ ------------ ------------
Net loss attributable to common shareholders $ (693,260) $ (384,963) $ (693,260)
============ ============ ============
NET LOSS PER SHARE, BASIC AND DILUTED
CONTINUING OPERATIONS $ (0.18) $ -- $ (0.18)
DISCONTINUED OPERATIONS -- (0.21) --
------------ ------------ ------------
$ (0.18) $ (0.21) $ (0.18)
============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING,
BASIC AND DILUTED 3,935,372 1,813,150 3,935,372
============ ============
GSTY lists $ 342,401 of interest expemses. We do know that there was less than 3 months interest at 5% annual interest due on the 16 million debenture owed to Dadon. Howver a full 3 months interest would have been only $ 200,000 and this was less than 3 months and Dadon also converted 2.2 million of that into 4 million shares. Seems as though the $ 342,401 is twice as much as would be indicated based on what we know. Anyone know the answer?
It also appears there were $384,963 in liabilities for "loss from discontinued operations" + "preferred dividends" from 2008. Is GSTY gonna be responsible for those? (Hopefully not) On 10Q filing these 2 items were in wrong column, but thats a small mistake for Tony and MSPC.
Looks like Dadon ended up taking a $ 9,538 haircut on his announced $ 260,000 cash payment on the option. It appears he only ended up with $ 250,462. Poor David.
Can't you just see it now. Perhaps the conversation went something like this:
Tony: David we are just a little short on the $ 260,000 cash payment we owe you.
David: What? Come on Tony you had $ 456,000 in the bank on 12-31-2008. What the problem?
Tony: Well you know David, expenses. For one the press release patting ourselves on the back for getting an option on your land was just a bit more costly that I thought.
David: Well how nuch cash do you have?
Tony: Uh looks like $ 250,465.
David: OK write me a check for that and you can owe me $ 9,535.
Tony: Need a little help here David. I can't show zero in the bank on 3-31-2009. I've got critics that will tear me a new one.
I am already getting grief on how the option will be listed on the financials.
David: Ok keep a dollar to show positive cash in bank. Oh Tony keep $ 3, I'm feeling generous. Just write me a check for $ 250,462 and we will call it even on the deposit. As the majority stockholder (70% plus of outstanding shares) I wouldn't want to have to deal with a default in the loan terms before I go to Cannes with our 13 movies.
