It's possible this was just a tax write-off, executed 31 Dec 2015 to offset something larger. It's a 95.5% loss on a $230K investment. He received 244K shares at a conversion price of $1; at current market price that's under $1K return, a loss of $229K. He's keeping the $20K note issued 7 Dec which is convertible 31 Jan 2016; also convertible at $1 for an additional 20K shares.
Current O/S as of the 31 Dec 2015 was 124,712,987 (to include the 4M shares issued as management compensation on 31 Dec 2015). His 244,946 shares brings the float to 124,957,933.
Current A/S: 200M
Current working capital deficit $72K
Accumulated Deficit $322k
Total liabilities (minus the $230K) $101K (additional $20K is still in rescission).
Last audit: 30 Sep 2015.
Assumptions: Now that the unresolved debt has been cleared up and removed from the balance sheet they should be able to proceed with a M&A this year.
KSSH estimates G&A for M&A 2016 at $100,000.
James K. Toomey owns 84,692,987, or 70.01% of O/S.
Ted Sparling owns 3,719,668, or 3.08% of O/S.
Jim LaManna owns 2,000,000, or 1.66% of O/S.
Total owned by Board: 90,412,655 shares or 74.74% of O/S.
Float: 34M.
Best Case: Assume the current board issues another 25M to cover M&A. At 20%, in order to effect a Tax Free transaction, that puts the new A/S at 750M. The additional 600M would be convertible 12 months after the execution of any M&A. This assumes they head down the path they discuss in their 10K.
No mention of VWAP conversions. No mention of toxic convertible firms (Asher, Ironridge).
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