"It's got to be one of the worst 10-Ks I've ever seen."
I asked one of the stock analysts in my department to look over the numbers. This is all his email response. Frankly, I don't care how bad he thinks it is, as I am in long, and besides, does any of this really matter if some big news surfaces tomorrow... I don't think it's as bad as he's saying, right?
"-This is from the auditors report on pg 5. This is really bad, it means either they couldn't find a CPA that would sign off on their financials without including this disclaimer, or their lawyers made them include it. This is rarely seen-
--As discussed in Note 3 to the financial statements, the Company’s future is dependent upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities. The Company’s financial position and operating results raise substantial doubt about its ability to continue as a going concern."
"Although they have been improving slowly, this company just doesn't make much money-
--As shown in the accompanying financial statements, the Company has incurred a net loss of $6,775,386 for the period from February 21, 2002 (inception) to June 30, 2010. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities. The financial statements do not include any adjustments relating to the recoverability and
classification of recorded assets, or the amount of the classification of liabilities that might be necessary in the event the Company cannot continue in existence."
"ARTS has a lot of problems and not a lot to get excited about. Their operating expenses are 2-3X what their revenues are. They would need to triple their sales, while keeping expenses the same to actually make money."
"All the warning signs are here. Their current liabilities exceed their current assets, that's never a good thing. They borrow small amounts of money, like $25k - $40k every few weeks. These debts could one day be converted to stock, which will dilute the shareholders."
