GeckoSystems Intl. Corp. (GOSY)

[Toxic Avenger]

GOSY concerns, Part I

Let’s start with “the great recession” (as the company calls it). I call it “The great dilution”
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=19331

Noah Clark Jr, is given 77.5 MILLION SHARES! All for “financial consulting”. What was that consulting? According to the company, “GeckoSystems Intl. Corp. (PINKSHEETS: GCKO) announced today that Noah Clark, Jr., is continuing in his consultancy with GeckoSystems and will be assisting them in securing funding sufficient for GeckoSystems to begin manufacturing of their personal companion robot”. How did that funding turn out? There was none. Was Mr. Clark asked to give back all those shares? NO WAY. In fact, IN 2 DAYS of August 2010, he was given 25 MILLION ADDITIONAL SHARES. ON TOP OF THE 52.5 MILLION HE WAS GIVEN IN 2009.
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=55386

That is a whopping 1/6th of the O/S at 6/30/11. 60% OF THE FLOAT! WOWSERS!

Doesn't look like naked shorting is the problem here. It looks like "Dilution gone wild" is the culprit.

How many shares did Mr. Clark have left on 6/30/11? Impossible to tell exactly, BUT ...
It HAD to be less than 24 million, because, only 2 BENEFICIAL (5% OR MORE) OWNERS LISTED IN THE 6/30/11 ANNUAL REPORT, SPENCER AND HIS WIFE. What happened to the 50 million PLUS shares???!!!!

Then the company has the nerve to tell shareholders all this dilution is GOOD! It’s converting long term debt to equity.
David Jimenez got 34.5 million shares for his “debt”
Paul Spencer was given 40.25 million shares for his, plus another 4 million for “consulting on business issues”. Hmmm. Any relation to Martin Spencer, CEO?
Unfortunately, there is NO long term debt has EVER been shown in the financial statements.

But the best, as always, was reserved for the CEO and his wife. They received 273 million shares as compensation and retention bonuses. Retention bonuses??? Were they going to leave the company?

77.5 million shares to a failed (at least by the standard set by the company) funding investor search, 273 million shares to the CEO and his wife and 75 million shares for “long term debt” conversion, with the only liabilities ever recorded by the company categorized as “current”, split between A/P and accrued liabilities. AND THAT’S POSITIVE DILUTION ?!?!?!?