Zero,
I don't think there is a need for management to respond to any of your comments.
The fishery division has been self-sufficient for a very long time. The company owns 75% of Fish Farm 1 and evidently they don't have any problem getting the cash flow from that CJV. Other than that, Capital Award generates cash from resale and commission, which is owned 100%.
RD -
Thanks so you confirm that they have "built" stakes in things that they don't own and that they sell stock at 2X earnings for cash. Also then you confirm that this technology they claim isn't anywhere but China - errr.... and collected by companies that don't have to disclose taxes since they are "farms" so there's no way to validate anything you are saying since apparently licenses are only SEC reported items? c'mon.....
so let's go to your CA deal where we still see what... $1.8MM in consulting last quarter? so let's be generous and say that they collected the $1.8MM. please show us the disclosed end customers from Capital Award. We see zero evidence that customers exist at all.
1. the CJV's aren't equity based so the cash collected if any is not contractual so the cash flow is parroted from assets that somebody else has legal claims to.
2. this CA capital award deal supposedly is paid for fish in Belize and doesn't report at all and the holding company doesn't report the end customers yet would typically be happy to say "wow Whole Foods increased flows by 40% this year" but no there's no evidence of sales since no customers, no taxes filed.
3. china would need patents filed for this fishery technology and nowhere do we have a reseller license shown nor a payment for this license.
what we see - and it's getting worse with each rebuttal is the following:
1. company buys one farm from an old guy who watches his pool of prawns, that deal breaks even to pay for SEC filings with shares sold to cover the difference and company initially makes up 3 years of earnings.
2. company forms new divisions and trades between these divisions and counts the internal trading as revenue. stock sold counted as paid up capital to CJV's that they don't own and can't force to do anything.
3. company sells more and more share of stock to pay salaries and debts. still no owned assets.
4. company finds one investor at 14% imputed interest (while reporting 100 million USD cash flow) to bite on future potential.
5. company it turns out has no sales relative to reported, cannot convert CJV to EJV and runs short of cash. they never had the cash control in the first place.
6. european investors run for the hills crushing stock from $15 to $5 and auditor resigns and brand new Norwegian CFO resigns quietly.
7. board assigns longtime guy to assume role as CFO - but neither CFO speaks chinese. how to reconcile accounts? hard to imagine.
RD your analysis is typically spot on. In this case it just looks bad for you relative to other opinions you have offered. until we see the technology evidence and customer names it's just one big promotional stock sale deal that never worked out.
waiting for the conference call - some day - should be one for the record books.
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