Respect Your Universe Inc (RYU)

[mlobbel]

This stock still stinks. Key questions:


FIRST:

This is the last quarterly statement the company filed:
http://sec.gov/Archives/edgar/data/1472601/000121465912005141/s111812010q.htm

How is it possible that from inception, the company bought $3,059,000 in "inventory" (page 6) and as of September 30, 2012, still records $3,059,000 in "inventory" on their books (page 3)?

That would only be possible if the company has sold nothing. However, they claim to have sales of about $420,000 since inception.

Either they had no sales, or their balance sheet is wrong or their statements of cash flows are wrong.

This might be a "minor" point for many of you, but should be another tremendous red flag for those who are not being compensated by the company and/or their shareholders to pump this stock.

The company has previously announced a restatement to prior financial statements, so it wouldn't be surprising if there are errors on current statements too. See: http://sec.gov/Archives/edgar/data/1472601/000121465912005118/c11161248k.htm

SECOND:

Again referencing this document: http://sec.gov/Archives/edgar/data/1472601/000121465912005141/s111812010q.htm that the company filed...

Why would the company be using a factor when they allegedly have $1,634,000 in cash in the bank? Why not establish a factoring line when sales are more meaningful and the company has less cash? Why pay 1.25% per month for something that isn't needed? Maybe because it's investors money and not theirs?

THIRD:

Again referencing this document: http://sec.gov/Archives/edgar/data/1472601/000121465912005141/s111812010q.htm that the company filed...

If the company continues to lose nearly $2 million in cash per quarter, and they only have (per their filing) less than that amount, at what point do they run out of money?

FOURTH:

If the company has a gross margin of 36% and is spending over $2 million in cash per quarter, what will this company need to do so that it gets to the estimated $5.5 million in sales it would need each quarter to break-even? Or, why/how/when will their cash expenses be dramatically reduced (aside from bankruptcy)?

Paid pumpers and promoters: Feel free to chip away at my character, questions, logic, whatever. Most legitimate investors can see through ignorance.

All others: I am genuinely looking for feedback. Feel free to respond as appropriate.

And by the way, there are 47,947,128 shares of common stock as of November 1, 2012 - much more than what is listed in the header on this board.

Lastly, please refer to all my previous postings as red flag warnings on this stock.

Amazing that it's not $0.005 yet. I was wrong about timing.

Good luck to all!