Replies to post #79775 on Bots Inc (BTZI)

[lesgetrich]

Regarding your first point, you're seriously overestimating the dilution going forward. Much of last year's dilution resulted from several management changes. The CFO was replaced twice, Maury was hired then let go, Mike Hawkins came on board and Ron Sassano was collecting salary while there was no revenue from construction. The various execs were paid signing and severance bonuses in shares. Salaries and expenses were also paid while revenues in the past 12 months were slim. None of this seems likely to be repeated going forward. Expenses have been going down every quarter for the past year. mCig is now reporting a profit. That indicates that they're able to meet all expenses from existing cash flow. Why would they need to continue to dilute? Also, with the increase in pps, fewer shares are required for any expenses even if they needed to issue more shares. To take last year's percentage increase in shares and apply it to next year makes no sense.

Regarding your second point, I don't understand your explanation.

With the current cash burn via only 10k net income from operations) there is no way cash from operations, in the near future, will be able to reduce this massive accumulated deficit. Thus, more shares will have to be issued or retired.

The $10k net income is what's left after the cash burn. IT'S PROFIT!!!
The accumulated deficit has already been paid for from additional paid-in capital. Paul paid it from his own shares and it wasn't a loan but a gift from Paul to shareholders. IT DOESN'T NEED TO BE REPAID! It would be the same as if he had put in all that money up front to start the company and received his initial shares. In this case returning shares to the treasury increased the value of his remaining shares because it took shares out of circulation (the opposite of dilutive) and paid off debts.

Consequently, all new profits go into increasing shareholder equity (i.e. book value) and in effect, they become retained earnings.

[MD-420]

Let's but forget les has been far off with his earnings estimates. I may have missed the start of the run due to stubborness, but my estimates have been dead on. 3mm is a generous estimate I'm giving them. Perhaps things develop more in the next quarter and I'll have to adjust, but for now, I'm looking for them to break 1mm in the next quarter to have a chance to hit 3-3.5mm for the year.