That's a great question Burnout...here's the answer:
Fake companies with fake customers and or products and or emerging tech for pennies compared to known tech costs are easy to sniff out. They come and go about as fast as you can read these posts.
UBRG realizes that FINRA and the SEC both have listing requirements that are difficult to forge and even harder to maintain so, create loose ties and prove revenue sources to keep the scam alive.
Here's the twist though... This is the most ironical... At this point, with management virtually owning all the shares they could make what I call "legacy wealth" going legit.
Think about it... If this company were to print legit PR and actually show:
1.) Net revenue
2.) Balance sheet cash
3.) EPS guidance showing real growth
4.) Debt reduction
for just a few quarters...
They'd see the shares skyrocket...I mean really skyrocket... Like jaw dropping skyrocket...
It'd be absolutely absurd how high the shares would go...
BUT THEY CAN'T!
They can sell that dream to the unwary and uninitiated because those types will buy it every day. "One born every minute" and "a fool and his money are soon parted" are their ethos.
They're making more money this illegitimate way than they were making before the dream team got together and conjured up this investors boondoggle.
It's simple really. There balance sheets say it all. The cost of every dollar they earn is more than they earn making that dollar. It literally costs them like $1.10 to earn a buck.
How long...without shareholder equity could your house last like that without creative financing and creative debt agreements.
The really sad thing, in my opinion, is that these companies are literally ALLOWED to exist and trade. You see... There's big money in penny stocks... Huge!
Did you know (fact time) that exchanges offer institutional traders substantial rebates per share per trade to buy/sell penny stocks? They do it to create a market place and offer the appearance of liquidity because otherwise the volume on these stocks would be nearly non-existent.
(That's front end money)
BACK END MONEY- SEC/FINRA charge filing fees all the way from listing fees to filing quarterlies and 8's A's ...EVERYTHING! If it got filed with them, there was a filing fee.
Then there's "fines" or "reinstatement" fees, and the list goes on...
You see, reputable companies file quarterly, annually, and then add in the occasional 8's and A's etc...there's a finite amount they can receive... But open it up to thousands upon thousands upon thousands of penny stocks and POOF... Magic money in fees n fines forever and ever. So what's the hurry in enforcing rules when "all things in due time". They "catch" the occasional scam company, they make sure it's headline stuff to show they are "on the job and watchdogs of the mom n pops" and turn blind eyes to the cash cows UNTIL enough investors in one stock finally press the right button and get action.
UBRG is on somebody's desk somewhere... FOIA it... Write a FOIA to FINRA/SEC and they'll tell you if there is an active investigation on UBRG and then you'll know the truth for yourself.
