Finally we get is see the quarterly SEC filing, I remember the day when investors could count on what they read in these filings, but I guess this is a different time and some folks think they can just throw out anything these days.
The “lowlights” of the filing!
Our outstanding went from 3,190,673 to 3,258,062 shares.
KR still shows “Deposits and prepaid expenses” of $160,000. This has been on the books for how many years now????
Total liabilities went from $2,150,383 to $2,263,224.
On page four; common stock is listed at 1 billion shares authorized and 3,265,992 issued and outstanding at 12/31/2012. That 3.265 million number does not match the 3.258 million number on page one for the same time period and where did that 1 billion authorizes come from.
Here is a big one; Total Stockholders Equity went from $402,581 down to $293,445. If that $160K “deposits and prepaid expense credit” is really not there, what is the stockholder equity number then???
Page nine now says “We expect to file an amendment with the Nevada Secretary of State on or before March 31, 2013, to increase our authorized shares to 200,000,000. This was from the vote where my “no vote” was not counted, etrade still has not heard from KR, as they were going to find out for me why my shares were not counted. He filed the annual list with the state on March 8th, but just couldn’t file the authorized increase on that date.
Here is a good one, the Ultrasonic Mitigation Technology made its way back into the SEC filing on page 15; remember KR lost the license and continued to report the ownership. He also spoke highly of the technology and Avalon’s continuing plans for the technology in the stockhouse interview, knowing Avalon didn’t own the technology or any rights to it at the time of the interview. The university lawyers, I am told, had to send KR a letter to remove the reported ownership from Avalon’s web page, and under Note3; “Intellectual property rights” on page 23; Patents, Trademarks, and Proprietary rights, no ultrasonic mitigation technology listed there.
Page 18 is my favorite, Mr. Rodriguez employment agreement expires on March 31, 2013 and down the page he reminds us about his preferred shares issued to an officer/director as payment for $500K, this is the stock he gave himself which still pays interest to him. Nevada law requires a vote of the common stock holders to grant directors and officers this type of ownership, which was never done, why would this be a law? To keep officers and directors from stealing the company out from under the common stock holders! Mr. Rodriguez preferred shares were granted to him by the board, which he was a member, and not by a required vote of the common stock holders.
On Page 19 those paid stock promoters pumping this stock need to read this very carefully, the company cancelled 83,335 shares of common stock that were issued, yes that were issued, to consultants for services provides, pursuant to consulting agreements.
Just me, but I am still waiting for KR to file the increase with Nevada, KR also needs to raise more money, to the tune of around million dollars, and this will give some folks the incentive to go.
If you want to do a little more DD and get some leads, check out what Avalon director JA has been up to lately.
And saving the best for last Note 12, on page 20.
