I think many traders who sold must have failed to read the 10k. This is the most pertinent section in my opinion. It suggests that the company has raised enough capital to cover its expenses until the release of Yellow. They expect yellow will provide enough revenue to fund their operations thereafter. They should have a pretty good idea at this point how much yellow is worth. I believe they may issue a few shares for services but I think the worst dilution is over for now.
LIQUIDITY
"In 2012 and 2013 We generated revenues from the release of Storage 24, and the sale of prequel and sequel rights on the film. It is anticipated that accounts receivable therefrom will be paid to the Company in the third quarter of 2014. We will be releasing the film Yellow both domestically and internationally either late in the second quarter or beginning of the third quarter of 2014. In addition to the revenues generated by Storage 24, the Company has raised sufficient investor capital to cover the Company’s overhead requirements pending the release of Yellow. Upon the film’s release, the net proceeds of the film are expected by the Company’s management to not only fund the Company’s operations, but also provide capital for additional new film productions. The Company has completed or has financing agreements in place for the Property, and $40 Million in special effects, production and post production equipment and services. The Company is currently working to complete additional project financing for the construction of the Studioplex.
