So tell me how they are going sell enough and profit enough to support a stock issue of 700,000,000 million shares? At .04, todays close, that would make a market cap of about $30,000,000. So far all I see is a guy who knows something about algae, info that I could get off the internet with a little reading, some tanks, a pump, some clear tubing, and compressed air to run the pump. Even Fisher seems to be saying in his videos that algae to fuel is not the way to go, that the other uses for algae are the real pay off. At some point, at a P/E of say 10:1, he would need to earn after taxes, etc, 3,000,000 dollars a year, to justify a .04 cent stock price (if he does not sell another 700,000,000 million shares to raise more money, which is very likely!). To do that he would need to sell say $15,000,000 a year of his systems (at a 20% profit after taxes, interest, depreciation, etc). At $100,000 dollars each, that is 150 units a year they must build, install, and service. Nearly 1 every 2 days, they must sell, build, install, train, and service, with 8 part time employees that are currently on the payroll at $55,000 for the past year (from his most recent P&L posted on the SEC site).
They are still piddling around with their first prototype folks! He said in his video he had groups wanting a 300 acre system, but he wants them to go with something like a 3 acre prototype first, because he knows he can't deliver a 300 acre system even they placed an order for it. His words basically!
They don't have the capital to do this, don't have the capital to take and deliver a 300 acre order. They might grow there way to that point in 5-10 years, other wise, if they have something truly unique (which I still have serious doubts about),they will need big capital, which will more than likely come in and buy it out at a distressed level leaving the old stock holders skinned.
I still don't believe he has any serious patent protection in the works, or anything of serious patent value. In fact in his video he points out they don't want to go the real patent route because they would disclose too much (fine, more secrets), so they filled a 1 year provisional, that the USPTO files away, and never looks at, and then if they change their mind, they can convert it into a real patent application within 365 days of mailing it (at a huge legal expense). Provisional patent applications don't cost real money, and you can write a new one yearly (does not take a patent attorney) as your tech changes and the old stuff becomes obsolete, and make all kinds of market noise to those who don't know the real story behind patent terminology.
To sum up, I just don't see any solid value evidence that it is worth .04 cents a share.
