CodeAuditor I appreciate your concerns and you do...
bring up some good points. As far as the partnerships are concerned, they were not announced in the financials, but in the presidents letter to the shareholders.
Key highlights from Presidents Letter...
Solos Endoscopy finished the first quarter of 2012 with a 16% increase in sales as compared to the first quarter of
2011. Going forward, Solos management plans to make a real effort to reduce debt and position the Company for profitability. By working with its various creditors, management believes the Company can be virtually debt free by the 2nd quarter of 2012.
Solos’ main focus is to strengthen the Company’s bottom line. Solos is implementing several strategies to accomplish this goal:
I. The Company has dramatically reduced its debt, and is now building its asset base through the acquisition of new endoscopic equipment. By focusing on building its inventory of Disposable instruments, the Company can enjoy a faster turnover which will result in increased revenues. Solos Disposables have the highest profit margins of all their various endoscopic instruments.
II. Solos Endoscopy will focus on new product development. As discussed above, demand for minimally invasive endoscopic procedures is on the rise globally. Solos believes it must continue to develop new products to meet this demand. Solos plans on working towards the international launch of its product lines as it continues to strengthen its national distribution channels in the United States. This should result in an increase in sales through 2012 and beyond.
III. Solos Endoscopy plans on developing new strategic partnerships and joint ventures. Our goal of maintaining a low overhead, with little debt, while expanding our product distribution internationally, means that it is necessary for Solos to look for new partnerships with Company’s who are willing to share the cost of both new product development and distribution. This strategy should result in a positive bottom line and real value for all shareholders. In closing, I want to thank each of you for your patience and continued support of Solos Endoscopy. We will continue to keep our shareholders updated through regular posting on www.otcmarkets.com and Company press releases. To learn more information about the Company and its products visit www.solosendoscopy.com.
Regards,
Robert Segersten
President and CEO
Solos Endoscopy, Inc.
I had been saying for months before this letter came out that a partnership or joint venture was in the works. That was how they were going to roll out their products and really increase revenue. This was the exact news that I was expecting to hear from the company. I knew this was coming and had been telling everyone to just be patient. Also note it says in the letter, they are looking for partnerships with company's, plural, which tells me when this does start to get to moving it will move in a big way. Once these partnerships are formed revenue will be increase TREMENDOUSLY from where we are today.
I know the A/S was not an increase to stop our group. What I was trying to convey to others was it would not of taken much for someone to buy up 250 million shares to own 50% of the company. So it was a smart move for the company to raise their A/S to help protect from a take over. I mean really for $2.5 million at .01/share someone could of done that. That would be ashame for the company to let something like that happen with all the products they have to offer/sale.
[b]As far as you saying, They have readily admitted that they can only operate on sales of stock and they have no other source of income that is true. That is clearly stated in the financial report. Most all companies say the same thing. But if you look a little deeper in the financial report it says they have enough capital to continue their business plan for the next 12 months.
For the Company’s first quarter, the Company has received a total of $109,000 from sales of its preferred stock and another $48,300 for subscriptions to its preferred shares that it converted to in April. It expects to raise an enough capital under the current contract to sustain the losses being incurred in its operations. The Company expects that the gross proceeds from its offering will provide enough working capital to continue its operations during the next twelve months and to execute its business plan.
Here they are only talking about preferred stock options and not common shares, and this was done in April before the increase in the A/S.
Also the company clearly states that thru these offerings (preferred stock options), that will provide enough working capital to continue it operations during the next 12 months and to excute it's business plan. Also note this was done in April, before the A/S increase. Looks like the company is using selling their preferred stock options to fund expenses. Someone is buying into the future of the company. They are not doing this thru common shares
Additionally, in the first quarter of 2012, the Company has reduced its debt by over $500,000 and $48,300 of the debt was converted to equity in April 2012. This restructuring has created a positive working capital at March 31, 2012 in the amount of $180,066 versus a negative working capital at December 31, 2011 in the amount of $349,569. The Company still does not have the liquidity it needs to effectively execute its current business plan and maintain its current operations. However, the Company expects with the existing sales of its Series B Preferred Stock that it will obtain the capital to expand its revenues to cover its operating expenses and gain profitability.
Once again this shows the company is using preferred stock options instead of common shares to gain profitability and they have $180,066 in positive working capital.
I have said before they have to have partnerships to make this company successful. With the right partnerships and joint ventures in place it will allow them to make sales of their product both domestically and internationally. I think that is why the importance of the CE mark is so important to the company at this time. The next 6 months is going to really tell us what the company will be able to do. I really do appreciate your comments. I hope maybe this information as far as partnerships and financing will help you understand the company a little more.
Take care my friend,
Mike
AI
