TY dannol48, enclosed is Part I of my “Fraudulent Activities” series. Today is “Margins” and “No Cash in ASFX Bank accounts” (except for the “One month” amount, per ASFX BOD’s latest 10Q.)
“While ASFX is progressing, having record sales with decreasing margins of over 50%,”
Sorry dannol48 for the use of “over”, will revise to:
“While ASFX is progressing, having record sales with decreasing margins of 24% from 48% (a 50% decrease) for the three months; and 25% from 45% (a 45% decrease) for the nine months.”
Talking about the actual “decrease %” of the margins, not the margins directly. These 45% to 50% decreases indicate the lien holders are selling the inventory for whatever price they can. Sort of like a FIRE SALE. I’m sure these lien holders are getting nervous about their $785,000 loan to ASFX. The lien holders have full control over the cash, inventory and AR related to the ASFX “Sales Cycle”. The ASFX Customers are sending the AR Balances directly to these lien holders, instead of ASFX’s cash accounts. ASFX Management is well aware of it too.
Your use of “$3,530 against $106,085 for 2011 Q3 comparison” just makes the Accumulated Loss amount of $15,457,491 for the last two years look “MASSIVE”, but maybe that’s just me. But either way, $15 Million in LOSSES is a lot of BUCKs.
Your use of “I'd sell a Thousand for 24% over a Hundred for 48% return any day.", is Nice, but the ASFX’s revenues have not increased 1,000%. It’s increased only 20% (just going by your statement “In FACT, the quarter had a record revenue of $439,644, 20% higher than any prior quarter in the company's history”). So I’m not sure what you are implying, but 1000% is not even close to 20%.
When taking into consideration the interest expense and related costs of borrowing the $785,000 credit line, the gross margins are pretty close to 15%, give or take, of course. I think my use of “OVER” now comes into play dannol48, but no big deal.
Regarding
“and slightly improving cash flow, it’s CLEARLY not enough to address our need to raise $3,000,000”
Thanks for agreeing with me, but your use of “They are pushing-forward cash use in anticipation of "large purchase orders"”, is Nice, but concerning the Cash Flow requirements of completing such an order, the actual cost of bringing this "large purchase order” to the customer is a little difficult considering the Upfront cost of producing these items. The Chinese want “Cash in advance”, and is illustrated on the ASFX Balance Sheet. Where exactly is this cash coming from dannol48????
It has been two years now, with losses growing by the Millions, maybe if you provided a “Cash Flow Projection” related to your “anticipation of large purchase orders”, then maybe I could agree with your point. The Exmen have only sold a little over a million of their product, and their advertising is everywhere.
To me, the ASFX Business model makes no sense, unless of course, there’s Massive Dilution. With the Uplisting failure, there’s little chance of any capital gains for investors.
Have you investigated the latest MASSIVE selling vol of ASFX Stock. It’s shocking, to say the least. For example, just to pay for the 2011 auditing fee and related expenses, will require the sale of 20,000,000 shares, or over 66% of the latest published OS figure. The CPA can't hold shares of ASFX, they need CASH.
And since Nov 21st, the PPS is down 60% ~ 80%.
But make no mistake about it dannol48, the fraudulent activities outside of ASFX Management’s control will continue. Good thing you didn’t invest, and trying to guess the “turn around” date is a little risky, shall we say. Maybe the annual Shareholders Meeting will give the common shareholders a chance to discuss their concerns. Do you know when the Meeting will be dannol48???????
Parts II and III will follow over the next couple of days due to my “only one post per day”. Part II of my “Fraudulent Activities” Series, is all about “Massive Dilution” with Charts, Graphs and “Cash Flow Projections”.
MANY Thanks for continuing this lively debate. Part III will be “The Christmas Disaster” and the current Auditing problem.
AI
