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Re: Agent92260 post# 59764

Monday, 04/18/2011 8:02:47 PM

Monday, April 18, 2011 8:02:47 PM

Post# of 105535
Very good point. The 10K gives a very good indication of what can be expected, actually.

Unless Matt pulls a rabbit out of his hat (or some other dark place), CBAI will most likely get diluted, based on their track record (and statements in the 10K)

FROM THE 10K:

Since inception , we have financed cash flow requirements through the issuance of common stock and warrants for cash, services and repayments on loans. As we expand our operational activities, we may continue to experience net negative cash flows from operations and we will be required to obtain additional financing to fund operations through equity offerings and borrowings to the extent necessary to provide working capital. Financing may not be available, and, if available, it may not be available on acceptable terms. Should we secure such financing, it could have a negative impact on our financial condition and our shareholders. The sale of debt would, among other things, adversely impact our balance sheet, increase our expenses and increase our cash flow requirements. The sale of equity could, among other things, result in dilution to our shareholders. If our cash flows from operations are significantly less than projected, then we would either need to cut back on our budgeted spending, look to outside sources for additional funding or a combination of the two. If we are unable to access sufficient funds when needed, obtain additional external funding or generate sufficient revenue from the sale of our products, we could be forced to curtail or possibly cease operations.



There is no indication from the company that this tactic will stop anytime soon.

Page 26 - very important for all investors to read.

http://www.sec.gov/Archives/edgar/data/1289496/000135448811001028/cbai_10k.htm

"Those Who Sacrifice Liberty For Security Deserve Neither."

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