OTCDD

[xxrayeyes]

I've been getting emails touting FMLY and thought I would take a look at it. On the surface it looks O.K. but I found this little tidbit in the last 10-Q/A. It looks to me like the plan might be to issue a lot of shares (Up to 200M) and then execute a reverse split. While this may not be the company's plan, they certainly set the table to do so. The corporation approved the increase of authorized shares and the reverse split in Dec. 2001 but they haven't filed a request with the state of New Mexico for the increase yet so the authorized is still listed at 25 Million. When or if they file the request with the state of New Mexico for the increase in authorized shares, there may be a dilution problem. From what I can tell, the company has until November 2003 to enact the reverse split so this year may be the year they begin to dilute. I got the November date from the Proxy statement filed in November 2001.

From the November proxy.
In addition, the Board will have the authority to determine the exact timing of the effective date and time of the Reverse Split, which may be any time prior to November 29, 2003

From the most recent 10-K.
During the year ended June 30, 2002, the Company issued 400,000 shares of common stock to its legal counsel for $57,500 of cash plus $113,665 of services and a receivable of $16,000 that was collected subsequent to year end. Also during 2002, the Company's stockholders approved an increase in the number of authorized shares of common stock from 25,000,000 shares to 200,000,000 shares. However, the Company has not yet filed a request with the state of New Mexico for approval and the increase in authorized shares is not reflected in the financial statements.

From the most recent 10-Q.
There were certain matters submitted for a vote by our Company's security holders at the annual shareholders meeting held December 5, 2001, all of which received shareholder approval. The shareholders approved an increase in the
number of authorized shares from 50,000,000 to 200,000,000 plus a proposal to provide for a 2 to 1 up to a 5 to 1 reverse split of common shares. However, at this time there is no plans to do a reverse split.


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