EDIT: Thanks for responding Dan. Please note I only have "1 post per day".
Your comment about "stock options" is completely invalid, and that being "Hopefully, a good sign on what insiders see in out years for the business." This move by Management is a pure PUMP, meant to drive the PPS up. There is absolutely no foundation, or business reason, for stock options to be granted at that time. ABSOLUTELY NONE!!!!!!!!
This type of "PUMP" is a common technique employed by PINKS. Team Roth has lost close to $20 million since Sept 2009, with no real end in sight. Gross profit on sales is decreasing at an alarming rate. This management team doesn't deserve "stock options".
My specfic question was in regards to the $2.3 Million GAIN in the third quarter. This gain reduced the 3rd qtr LOSS from over $3 Million down to the reported $760,000 Loss. And per your comment regarding the 2nd Qtr loss of $4,009,697, two major reasons for this were,
"(ii) the charge resulting from triggered anti-dilution provisions within certain convertible debt agreements, (iii) fair value changes within derivative instruments,".
And please note, ASFX is using the accrual basis of accounting and the PPS as fallen about 90% since the mid-September uplisting. The explanation/disclosure made by Management in Derivative Footnote is so WEAK, it borders on FRAUD (IMHO). Please keep in mind the 1st Qtr 10Q was AMENDED due to the Accounting error made in the derivatives calculation, and that error was close to $1 Million in additional losses.
Now please explain the current $2.3 Million GAIN, in light of what happen in the 1st & 2nd Qtr regarding the "anti-dilution provisions" and the "derivative instruments????
My estimate didn't include a $2.3 Million Gain but just the opposite. The "anti-dilution" provisions alone is a HUGE Loss. Maybe I miss something in the "TWO CENT" Deal agreement, but either way, common shareholders are screwed.
Once you have a COMPLETE understanding the Balance Sheet, only then will you have an understanding of whats really going on in ASFX Land. Management isn't really being direct and forthright with the shareholders, but its all there in "black and white". You just have to take about 20 Hours to read and understand it.
Or you can take a "short-cut", and just listen to the "Facebook Gang".
Do you really understand the "anti-dilution" and "derivative" calcutions, from Qtr to Qtr Dan?????????????? But more importantly, does the following explanation/disclosure make sense when comparing it to the 1st (as amended) and 2nd Qtrs???
"During the three months ended September 30, 2011, the Company’s trading price of its common stock fell significantly. As the Company’s trading price is the primarily component in determining the fair value of the Company’s derivative instruments, the Company recorded a mark-to-market gain of $2,257,627 for the quarter ended September 30, 2011."
AI
