Thursday, March 29, 2012 9:17:06 PM
LOL ... its NOT ACTUAL $$$ LOSS!
11M unrealized loss for 2011 is not bad at all considering it is primarily the
cashless derivative liability for the fully diluted shares at the end of 2011. When
calculating Earnings Per Share (EPS), all convertible securities, including warrants, are
assumed to be exercised. They are referred to as "fully diluted shares."
Compute the "fully diluted" value of the warrants at the exercise price. Since
the warrants are detachable and have value on their own, calculate that intrinsic value
of the warrants based on the exercise price.
Meaning we have to treat them as a liability because they are potentially a payout or
"bill" to the company if the holder exercises them at the strike price and the
pps is actually lower at the time. We will actually have a reduced liability or
calculated "loss" for the quarter ending tomorrow because the much lower pps X
fully diluted share count will equal LESS THAN 11M.
See how the company isn't motivated to tell us a lot of info or make a big fuss UNTIL
THEY HAVE THE PRODUCT ready to be sold on a mass scale and READY TO PRODUCE BIG REVENUES
to counter the big warrant liabilites that will also rise as the PPS rise. THIS
ACCOUNTING FACT is also what caused the company to go into more of a quiet mode. Go back
and look at how the company started acting once they hired our CFO Yesner.
Remember, Market Capitalization is really only needed to be high IF YOU ARE LOOKING TO
BORROW AGAINST IT OR use it as leverage to negotiate with financial institutions.
SO IF THE COMPANY doesn't spend a lot of time, effort and $$ to raise it's MARKET CAP
then what does that tell you??????????????? wink
11M unrealized loss for 2011 is not bad at all considering it is primarily the
cashless derivative liability for the fully diluted shares at the end of 2011. When
calculating Earnings Per Share (EPS), all convertible securities, including warrants, are
assumed to be exercised. They are referred to as "fully diluted shares."
Compute the "fully diluted" value of the warrants at the exercise price. Since
the warrants are detachable and have value on their own, calculate that intrinsic value
of the warrants based on the exercise price.
Meaning we have to treat them as a liability because they are potentially a payout or
"bill" to the company if the holder exercises them at the strike price and the
pps is actually lower at the time. We will actually have a reduced liability or
calculated "loss" for the quarter ending tomorrow because the much lower pps X
fully diluted share count will equal LESS THAN 11M.
See how the company isn't motivated to tell us a lot of info or make a big fuss UNTIL
THEY HAVE THE PRODUCT ready to be sold on a mass scale and READY TO PRODUCE BIG REVENUES
to counter the big warrant liabilites that will also rise as the PPS rise. THIS
ACCOUNTING FACT is also what caused the company to go into more of a quiet mode. Go back
and look at how the company started acting once they hired our CFO Yesner.
Remember, Market Capitalization is really only needed to be high IF YOU ARE LOOKING TO
BORROW AGAINST IT OR use it as leverage to negotiate with financial institutions.
SO IF THE COMPANY doesn't spend a lot of time, effort and $$ to raise it's MARKET CAP
then what does that tell you??????????????? wink
