Points from 2013 10-k
Revenue: $3 mill in revenues compared to $320k in 2012. This revenue does not include the $5 mill a year from the blackhawk manufacturing acquisition.
Gross profit: $1.5 mill, not a bad margin
Operating Expenses: Stock based compensation: $6.2 mill, stock issued for settlement of agreements: $3.7 mill. Total operating expenses: $14 mill.
Based on these numbers if the blackhawk revenue has the same margins as current revenue and they get some additional profit from the trans acquisition they should be able to maintain positive cash flow with out the need for outside investment by next year!!!
R&D expenses were $0????
Dilution
Looks like at least some of the dilution has been from the Ironridge financing:
"In December 2013 we entered in to a 3a10 arrangement with Ironridge. As of December 31, 2013, we had issued 7,700,000 to cover the Newport Coachworks liabilities assigned to Ironridge as part of the arrangement. The 3a10 agreement specifies a $6m “calculation period” which determines the final settlement of shares in settlement of the debt. This calculation period extended in to February 2014 and due to the drop in our share price post year end we were required to issue a further 27,000,000 shares as final settlement."
Thats 34.7 mill shares since december 31 that i think were free trading. It doesnt mention the status of the second issuance but the first 7.7 mill were free trading ("These shares were issued without a restrictive legend pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, and Section 25017(f)(3) of the California Corporations Code.")
The other large issuance appear to be to affiliates (Carter Read and other employee compensation).
Seems like the largest driving factor in the sell off was the 200 mill that became free trading in dec. Other than that there doesnt appear to be a lot of dilution.
Shorts may have been involved in the initial huge drop but i have a feeling the majority of shorts have or are covering around the .02-.03 price range. No need for a short to keep going if they shorted at .40 or .10. Also doesnt look they there are many new shares coming into the market issued below current market price.
This filing makes me think that we may have found a solid bottom!!!!!!!!! Looks like GACR has a relatively solid foundation (compared to other penny stocks) to begin to grow on. Time to go up. More news from the company about the acquisitions and future growth plans should allow shareholders to start to see some nice returns.
GLTA and go GACR!!!
AI
