Replies to post #77845 on Bots Inc (BTZI)

[Perfectson]

Sorry, the way you're explaining this really misses the point.

It's all a ruse.

Of course they won't just come out and stick it to us, they need to be able to exit positions that are still worth money. They have no cash to pay anyone salaries, so the only way they can do it is to get them shares (potentially at 15% discounts) to have them sell in the open market. If we all realize that the company is going no where and that these guys are just trying to get cash out, we could - tomorrow - sell all our sells and these guys would be f'd. They don't want that, they need us to believe and stick around and keep the the PPS at a relatively profitable level for them.

.so they're not being paid in stock. The full year salary can be booked immediately by the Company as debt but only $10,000 is earned by the Employee each month (I assume written off as salary owed and debt repayment). I should show up in this quarter's financials. Presumably Paul and Mike are not entitled to it until it's earned.

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isn't it convertible debt? if so, then any analysts would convert these to stock when analyzing the company. additionally, the full year salary can't be booked immediately as debt - you can't create a liability that isn't there and if they accrue the full salary , they would have to expense the full salary as well. It's basic double entry accounting, cmon Les.

If the intent was to have the Board meet each month to approve converting that month's Salary into shares, they could have simply paid in shares and avoided the hassle of a loan/debt.

1. They will get shares at 15% discount on conversion, how would they be able to mimic that, when they have no cash to purchase stoclk on the open market and pay teh 15% off to give to each other.

2. because in case of bankruptcy , debt > common stock . Since we are barely cash flow positive (excluding acquistions and one offs, we would be negative) there is a going concern. And debt > preferred stock > common stock ...so we will get screwed ontop of those preferred shares, which gives the CEO first dibs, we now will play second fiddle to the C-levels of the company