Pitadog - In an effort to be fair to both sides of the argument, I will from now on make a point of my own and then also include a concession to the opposite argument.
Concession: You are absolutely right in that the company basically has no cash right now. That is what many here need to realize just as you point out. Nothing as far as operations, the business ramping up or anything can begin without an infusion of money. Obviously, there are many levels that are possible. There have been some companies and products which use a HUGE amount of capital to launch big and hope that the momentum of the ads and product sales during the initial campaign to explode the product out to consumers serves up a profitable situation while others have taken a slow approach just landing a small contract here or there and building the distribution and sales network bit by bit.
Whatever cash the company can immediately get their hands on ($110k from Denverson) is speculative as it would take Denverson to finally act on the agreement and fully 'execute' the LOI. Anyway that amount of cash would do little other than keeping the monthly bills and lights on. You are absolutely right in that the biggest concern for shareholders in the company right now should be viability and survivability. In order to survive the company must get its hands on capital in order to meet the costs of operations in order to ramp up the business.
My point : I cannot fathom a business world in which SFIO the company or its management cannot get their hands on a couple hundred thousand dollars. Especially considering that when they got the $400k loan years ago, their liabilities from years of R&D were upwards of $2M! And now after the Denverson deal, the company is actually showing assets greater than liabilities so I cannot see how there could not be a single bank that would extend a line of credit (however small) to this company. Whatever bank risk/probabilities you place on a particular bank, add the factor of a possible future inked contract (however small, gas stations, store, etc) for SFIO and a distributor (again, however small) and I think the prospects for landing additional capital is not an outlandish possibility. According to Roth, the Denverson agreement will provide 'ongoing royalties' to SFIO based on the teaming product placement and patents worldwide. Of course who knows what Denverson's sales performance could ever be but just simply discussing potential opportunities for various income streams for the company, it must be mentioned. Let us not forget that the primary liquidity for which SFIO could garner assuming the Denverson situation can be accomplished, is the roughly $1M stake SFIO will have in Denverson stock. Once and if the IPO goes through on the Frankfurt exchange, SFIO could slowly sell shares here and there, converting small portions of the notes to Denverson stock and selling shares here and there in order to pocket some cash for the balance sheet and operations. I simply do not share the idea that there is absolutely ZERO chance for this company to EVER get its hands on ANY capital. That assertion is just too hard to prove in this world where almost anything is possible.
$SFIO!
AI
