Cobalis Corp. (fka CLSC)

[baramu]

One major assumption in your logic is that he paid ~$.10/share, which is how you came up with him being $4MM in hole. Since they haven't been filing financials in forever, you don't know what he actually paid out of pocket and into the company for those shares. You also don't know what money left the company to him during the last few years through direct or indirect means.

Think about what the total debt was to YA when all of this started. If Stern was actually going to come in and shell out $4MM in cash, he would have simply bought the debt, which I think was originally in the $3MM range and topped out around $5MM prior to judge ordering $120M monthly payments. Other deals and details exist that are not known to us.