re - forecast shares 2013
the convertible balance of 141k i believe on paper much higher, wouldnt you add the unamortized discount to that for face amount that could be converted ?
If current liabilities on 10k $2.6 million, we add unamortized discount, deduct derivative liability as a "paper" accrual, and deduct a further $750k that perhaps could be delayed past 12 months, we get around $1.6 million. Add $1 million in capital required, or other payments, then $2.6 million. So at $.05 "traditional financing" , 52 million shares.
This doesnt count the discount the existing convertibles would have off the share price nor new convertibles.
you are right if one accepts the forecast profits, still could be great speculation, but the earnings per share would need to reflect the increased shares equired to finance business plan.
furthermore IF management is forecasting production in the fall, then they must have an estimate of capital required. a september commerical production date requires hiring of personnel, ordering of supplies, any equipment purchases and upgrades etc, etc.
And to estimate EPS under US GAAP will require certain deferred costs to be expensed - usually over the amount of reserves.
