“REVELATIONS: 10-K” –THUS SPAKE EV
(Any comments that follow represent my own personal opinion)
1) The 10-K just filed (woefully late I might add) is for the quarter ending December 31, 2010 –a mere 44 days after the infamous 24,000/1 reverse split. A ton of damage to the average shareholder has taken place in the 3-1/2 months since then. IMO, this filing does not accurately reflect the sorry state of affairs that exists today.
2) All directors collectively hold 295,001,300 shares of common stock (28.82%) which, at Fridays price of .0002, equals a whopping $59,000 –COMBINED. Does that mean the 71.18% of shares remaining are worth (roughly) a paltry $150k?
3) “Goodwill” is STILL listed on the books as being worth $ 3,798,667!!! This accounts for all but 1,831,052 of all assets. Does anyone honestly believe that “goodwill” is worth DOUBLE everything else ARTS owns?
4) “Inventory” is valued at 1,248,357. But is this retail price? Actual cost of goods? What? Who did the 'valuing?'
5) “Accounts Receivables” plummeted from $513,556 to $101,579 –a drop of FIVE FOLD. And this during the ‘high season’ for art & collectibles/ Christmas gift buying.
6)Artfest cannot afford to purchase "key man" life insurance on the CEO or any other officers vital to the survival of this company? That speaks volumes and shows just how vulnerable this company is.
7) Why were investors not notified that Christopher Miner stepped down as CFO in November? The company posted several other announcements since then. Was this not worthy of a mention? And can anyone produce a single document or filing that Miner has signed as CFO? Why has there been no announcement regarding his successor --Ahmad Abdul-Qadir-- who, according to LinkedIn, is reportedly a CPA/ MBA who resides in the Dallas/Fort Worth area?
8) Besides that of former Artfest officer Steven Rash, I know of at least one other lawsuit (this one by an irate investor) that is currently active. I am not at liberty to provide the name of the individual or details (of which I know precious little) at this time so take that for what it’s worth --heresay.
9) “Picasso”: The 10-K finally admits ‘possession’ but not ‘ownership’ of this wooden statue. However, they still insist on referring to it as being a work by Pablo Picasso (IMO it is not). They have still not provided any evidence that ‘authenticates’ this piece as being legitimate. Nor have they produced any documentation or assurances from the Picasso estate or their licensing agent (www.arsny.com) granting Artfest permission to make derivative works (i.e. giclees) based on this piece or to use the name, image and likeness of the artist in promotional efforts. Based on the date carved into this wooden log, it is NOT in the public domain regardless of who produced it.
Despite these red flags, Artfest published promotional announcements which stated:
--“Images of Francoise Gilot are in high demand in the market and have constantly proven to yield top dollar.”
--“This piece will significantly increase Artfest International's assets and add value to the Company's bottom line.”
--“The purchase of this original Picasso art piece will increase Artfest International's asset base as we continue to meet the requirements of becoming listed on a higher exchange such as the NASDAQ or the AMEX," stated Edward Vakser, CEO of Artfest International, Inc.
--“Artfest is raising additional capital to finance the Picasso acquisition, as well as several other investments for the company. In order to fulfill these investments, Artfest Board of Directors elected to increase its authorized shares."
(If I had purchased stock based on these statements which were published beginning almost a year ago, I would be livid!)
As shown above, Artfest lists its’ “Inventory” as being worth $1,248.357. A $2.5 million payment to Barry Wicker… or any significant payment whatsoever.. is nowhere to be found since this announcement nearly a year ago.
10) FINALLY.. ask yourself this:
How much money has Artfest taken in from investors since it’s inception? Was this money used for legitimate business purposes and can it be proven? If not, then where has it gone? As investors you have every right to know.
AI
