Yes, I already said I agree, that he over compensates himself. The R&D to SGA ratio is definitely troubling. However, you must look at it rationally, from both angle, you only look at it from one angle. Yes they only have 10 employees, but they are basically all Management.
5,000,000- 370,000(riggs salary)- 370,000(I imagine his Bro makes about the same as he does)
=4,260,000 - Consulting fees for Gerald R Baily and 2 others, which I KNOW are not cheap (consultants charge a fortune)
-$400,000 for cost of Revenue, Remember, they don't have a factory line, they currently build every machine, by hand, this is slow and costly.
- the other employees (who are probably over compensated as well)
-SEC filing costs - the shit they fill there building with (chairs, couches...etc; probably overspend here as well)
-Legal fees from the australia nonsense - patent fees - plane/train tickets - gas - Web hosting/ Web Master Fees (they have a pretty comprehensive website
-They obviously pay for pumps, this is no secret. Money TV big Biz..etc - all the Videos and shit they make(pretty sure this doesn't count as R&D)
- I imagine they pay CWT and PACE for the work they are doing.
Selling: Cost of Sales, which includes salaries, advertising expenses, rent, and all expenses and taxes directly related to producing and selling product
General: General operating expenses and taxes that are directly related to the general operation of the company, but don't relate to the other two categories.
Administration: Executive salaries and general support and all associated taxes related to the overall administration of the company
Now, if you look at the R&D side. They really only have one Core Technology that they are making right now. It just come in different sizes, with a brush instead of rake...etc. the Algae Appliance is the same machine as the Clean Frac, there would basically be no R&D costs associated with developing the second machine after they have the first. Nicholas essentially does all the Research on his own, and none of the materials and equipment they use look extremely pricey, its just pipes, plexiglass, a pump...etc
I am not saying that Riggs is not taking advantage of the finances, there is no doubt he is taking more than he has earned thus far, however You come up with arbitrary numbers out of thin air, and scream Toga Party this, Toga Party that.
as for the Performance of the stock thus far, yes it has been shit, but if you look at almost EVERY company dealing in biofuels/algae/renewable tech, they ALL have suffered horribly. Solazyme, Gevo, Amyris, Ceres, Kior. There are a Few like Renewable Energy Group, and some Solar companies that have been rebounding over the past year. Overall though, it is just a tough sector to crack, and takes time. Will Originoil succeed, hard to say, things have been looking grim for some time, but I can't look at this company and see a criminal group. Some shady things, yes, but outright thieves? not enough evidence to support such a claim.
