futrcash...CEO debt, quarterly filing comment.....
Together with HemoGenix, Inc, with whom the Company formed a strategic alliance in April 2010, we jointly exhibited at this meeting and launched new products for advanced testing of stem cells known as mesenchymal stem cells and induced pluripotent stem cells, which are types of adult stem cells of considerable research and clinical interest. We established contact with numerous prospective customers and also engaged in discussions with several prospective collaborators. From these initial contacts, the Company has on-going discussions regarding the establishment of a distribution contract with a leading global supplier of life sciences products. The Company intends to pursue this opportunity to the full extent possible since management believes this is a strong opportunity to realize increased revenue in the immediate future. We further engaged in discussions with a partner for the development of media for use in the production of stem cell-derived food while at the ISSCR, together with other potential collaborators and customers. Product sales increased compared to the previous quarter (See “Results of Operations”) and we continue to focus our efforts on increased revenue growth during the Company’s 4th fiscal quarter and beyond. Management is engaged with numerous current and prospective customers regarding product sales and there are several opportunities for collaboration with other firms and university researchers working in the stem cell sector that may lead to strategic alliances further expanding sales of the Company’s products and development of new products targeting stem cell research and drug development. Also, there is renewed interest by an offshore third party in commercialization of the Company’s fertility drug product and technology portfolio.
In addition to the above information and delivery of the prototype culture media subsequent to the quarter's end, the filing contained an interesting comment about the CEO's accrued salary/debt (see below). To the best of my knowledge this is the first time I recall this type of statement/comment being made in a filing since that early 2008 financing.
For those who don't recall, when VODG entered into that initial 2008 financing the terms of the financing required that the CEO's accrued salary/debt would be reorganized through a two-stage process. The first stage was done with the issuance of some shares, however the second stage has never been completed yet. The second stage basically consisted of the CEO forgiving all his accrued salary/debt above $500K and placing the remaining amount into a promissory note which would be convertible at $1.
Given the length of time that has elapsed since that financing, or the possibility that the investors may have simply waived the requirement, it is entirely possible that the terms of the second stage may no longer be implemented. However, in my opinion, if the CEO/company were to enact that phase (under the original terms, or similiar shareholder friendly terms), I think you would see a noticeably positive market reaction.
Statement in the last quarterly report.....
The majority of the working capital deficit and the shareholders’ equity deficit is due to accrued salaries and notes due to the president and CEO which management intents to reduce in the future through appropriate measures.
