RFMK Dilution vs. your personal paycheck analogy.
Paycheck
Perhaps a simple way of understanding the shareholder update and dilution is to look at your paystub. You see the gross amount earned, and then the net take home. You work for every penny, but have to give a large portion of your pay for the benefit of your state, government, health benefits, social security, etc. even if you don't feel the direct benefit right now (or simply take them for granted).
Now, your net take home isn't going directly in your pocket for pure entertainment and fun. You have a budget with that take home money to support your being that goes toward rent or mortgage, food, home and car insurance, utilities, etc. Whatever is left over you can use for savings and fun.
Dilution
There's a gross amount that the 47 million shares are worth and there's a net amount that RFMK gets from the funder. The value of RFMK is worth what it is, but a large portion of total value of the 47 million shares goes to the funder who in this example is like the state, government, health insurance company, social security etc. that provides the service and takes a large portion from the gross. (we're not seeing the direct benefit of this service right now, but....)
Now the net take home for RFMK was stated to be $100,000. A budget was given in the shareholder update today stating where those funds were being allotted. It's just like your personal budget, but this is going toward the well being of RFMK as a business. What little is leftover goes toward compensation to employees which in turn is then applied toward their well being. If I'm doing the math correctly, it isn't like RFMK employees are making out like bandits living it up.
Conclusion
The funds raised from dilution did not go directly to RFMK principals and or associates. They are going toward the growth of the company which in turn will pay dividends for those who are patient.
Today's update shows transparency. When have we ever had this kind of transparency from RFMK in the past prior to Tom Allinder as CEO?
Have a great day everyone. I'm off to boot camp.
Go RFMK!
Rec
AI
