I agree both Roy and ATTD hoped, even expected, that ATTD's revenues/profits would cover the various convertible notes coming due in the next few months. However, yesterday's reported net revenues for the ATTD quarter ending December 31, 2011, came in at only $40,171.00, with product and shipping costs bitting $34,073 out of that $40K. The result: only $6,098.00 in gross profit. Moreover, ATTD took a net loss from last quarter's operations of $498,811.00. (ATTD 10Q for Quarter Ending December 31, 2011, p. 3.)
Thus, please examine my premises...
First, the $40K net revenue figure came in lower than I believe Roy had forecast (and the $498K net loss much higher than he calculated). For instance, even I had (incorrectly) projected at least $150,000.00 in net revenues with a net operations loss below $100K. Second, within just the next few months, $5.63 million in convertible notes come due - most of those maturing next month. (Id., at p. 13) Third, while I expect this quarter's net revenue to smash and make look silly last quarter's paltry $40K, I must admit that I do not see even this and next quarter bringing in gross (much less net) profits anywhere close to the $5.63 million dollar range. Fourth, $5.63 million in those notes coming due fast, at the current 20 EMA of ~ $0.0051 per share, would require 1.1 billion shares from the A/S to satisfy [ineed, even at a hypothetical $0.0091 per share, 618.6 million shares would still be needed from the A/S]. Fifth, the ATTD current A/S only has about 490 million shares left (i.e., at its current 1 billion total with approx. 510 million shares already outstanding).
Hence, my conclusion that ATTD will almost certainly have to increase its A/S within the next month or so.
NYSE>NASDAQ>AMEX>OTCQX>OTCQB>OTCBB>PINK SHEETS>CE
