You must be referring to the dilution info below.
Yes it should stay as a sticky note for sure.
At the end of march 31 2011 they had 26K in cash. At the end of march 31 2012 they had a negative balance of cash. At the start of this past reported Q they had 7,798 in cash and at the end of the most recent Q they had negative 25,267 in cash. The sad part of that is they have sold 10's of million of shares and their cash on hand has not only NOT improved but now showing negative.
This is right from the Q.
CASH AT BEGINNING OF PERIOD $7,798 $ 26,818
CASH AT END OF PERIOD $ $(25,267 ) $ 26,574
Then look at this from the Q, More shares that are supposed to be issued for debt.
The Company has evaluated these convertible notes for embedded derivative features and has determined that no derivative liability exists. Assuming all notes are settled via common stock, the number of shares to be issued to satisfy approximately $3,727,660 of debt plus accrued interest is approximately 17,653,000 shares of the company’s common stock .
This is all they do is issue shares for debt. Every Q there are more shares and more shares issued.
Then we have this
The Company converted $2,963,028 of the film and production loans into 5,989,349 shares of common stock during the three months ended September 30, 2011, $906,000 of film and production loans for 3,490,385 shares of common stock in the 2 nd quarter ended December 31, 2011 and $943,580 of film and production loans for 6,749,658 shares of common stock in the 3 months to March 31, 2012.
Just look at this rate of dilution
Between October 1, 2011 and December 31, 2011 the Company issued 11,470,808 shares. The total number of shares outstanding on December 31, 2011 was 22,620,288.
Between January 1, 2012 and March 31, 2012, the Company issued 19,348,684 shares at an average price of $0.19 per share. The total number of shares outstanding on March 31, 2012 was 41,968,972. (See Subsequent Events Note 13 for stock issuances subsequent to March 31, 2011).
Then look here in May
Total shares outstanding as of May 10, 2012 was 68,090,174. (including 2 million shares issued to SAP Plc.)
Two months later its up another 36 million shares.
Now as of the 8K today
As of June 30 2012 (the Company’s financial year-end) , the Company had 96,793,011 shares in issue. Since the last reported number of shares on May10, 2012 in the March 31 2012 10-Q , the Company has issued the following unregistered securities.
Its increased another 28 million.
Give me a break this is printing faster then the dallas morning news. The sad part is they did a RS last year and the OS was 2.5 million shares. So the shareholder equity here is maybe .25 a share and that is if we do not see any more dilution. But looking at the current shares still need to be issued for debt that number is going to continue to go up. Tell me what about this balance sheet looks good again.
Just look at the 8K today at the new shares to be issued
New Stock Issuances from May 10, 2012 through June 30, 2012
6,659,364
common shares were issued in satisfaction of $240,000 of film loans previously converted at an average conversion price of $0.04/share. (high of $0.09 and low of $0.02)
18,109,801
common shares were issued in satisfaction of the $796,152 of newly converted debt at an average conversion price of $0.04/share. (high of $0.08 and low of $0.04)
2,568,383
common shares were issued in satisfaction of $200,000 of existing overhead liabilities (loan interest) at an average conversion price of $0.04/share
I think the very sad part is that the CEO keeps releasing the same hold hashed over news or fluff. The more share issued the equity keeps going lower and lower. Remember they have up to 250 million shares they can issue and from the looks of it they are going to keep issuing shares. Nothing would indicate they are not.
The dilution is non stop with this. I have yet to see a 10Q of 8K that did not have a huge increase in shares in the last year. So if you can count on management not to issue one more share you are correct its worth a bit more here but how can anyone trust this management when they are diluting 20-25 million shares at a clip here.
