Biostax Corp (BTAX)

[SSDBase]

TNIB's filings are always amusing.

$313k of cash and $1.4 mil of current liabilities.

Which leads to the following disclosure:

Our cash reserves will not be sufficient to meet our operational needs and we need to raise additional capital to pay for our operational expenses and provide for capital expenditures. Above the basic operational expenses, which are estimated at $150,000 per month, we estimate that we need approximately $7-15 Million USD in 2013 to fully develop our products and for phase III clinical trials for Crohn’s Disease. If we are not able to raise additional working capital, we may have to cease operations altogether.

We can use this disclosure on how they will raise money:

We issued a total of 7,285,000 shares of common stock for cash in 2012, which generated $1,136,500 in proceeds.

So they financed their 2012 operations by selling shares at around 16 cents each. This is in a year when the stock never traded below 50 cents and hit $10 at one point. If they keep that up and try to fund the low end of their plans the same way, they are looking at 56 mil new shares.

Now, I don't really think that will happen, as I don't think they have any intention (or ability) to run an FDA trial.