There is definitely a reason why he worded that note in the 10-K that way. It may have to do with the elimination of those Series C Preferred shares.
After looking at who owns those 20,000,000 "C" shares it appears it's questionable if Tom owns them or not:
"The Company currently has 20,000,000 shares of Series C Preferred Stock authorized and 20,000,000 shares issued and outstanding held by a corporation controlled by its President and Director. The Company issued the Series C Stock during the year in connection with the Acquisition. The Series C Preferred Stock is convertible into Common Stock at the election of the holder at $.20 per share and also has preferential liquidation rights."
That's $4 million dollars worth of stock. Turning them into common shares with a restriction that would delay the ability to sell them until a future date when the company is worth a lot more is a good move on Tom's part. Somehow, that's tied in with the plan to reverse split.
I'm hoping Tom will address that. Like everyone else does.
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