Replies to post #32613 on InterCloud Systems Inc. (ICLD)

[DonJohn]

The 10Q also states:
As of March 31, 2017, the Company did not have sufficient authorized shares for the remaining equity warrants to qualify as equity. Per ASC 815-40-35-9, the Company reclassified these warrants to a derivative liability at their fair value as of March 31, 2017. Based on a warrant to purchase up to a total of 2,500,000 shares of common stock and an underlying price of $0.03 per share, the Company recorded these warrants at fair value of $75 on the unaudited condensed consolidated balance sheet as of March 31, 2017.

On March 31, 2017 and December 31, 2016, the Company used a binomial lattice model to value the warrant derivative and determined the fair value to be $189 and $152, respectively. The Company recorded a gain on fair value of derivative instruments of $37 for the three months ended March 31, 2017 on the unaudited condensed consolidated statement of operations.

On April 1, 2017, the expiration date was extended until the Company’s proposed reverse-stock split is effected (refer to Note 16, Subsequent Events, for further detail).
All this means is the lenders are giving them some slack on when the note has to be paid until such time the RS is approved by FINRA. Translation: The RS can happen at any time from now until Aug 29th.

[shotsky]

An extension of the RS is not mentioned in the recent ER. Previous ER said on or before 8/29. Further reading reveals stock options are maturing on 8/30 or so, so the RS is needed to permit employees to exercise their options. I assume the wait has been to pay down as much as possible before permitting more conversions AND permit employees to get their options exercised before the OS grows too much.
I suspect this split/conversion cycle will be the last, but longs will have to hold through it to see the light at the end of this tunnel. The light should be a stock price over $1. That would be 40X current price, which is fine with me. All I want to see is a clear 10X, and I do think that's doable.

[Your Master]

I think ICLD has filed an extension of their Reverse split because I have read it there in their 10Q. Its rather simple to find, and not to mention, why would they waste a reverse split on 3 cents..?

On April 1, 2017, the expiration date was extended until the Company’s proposed reverse-stock split is effected (refer to Note 16, Subsequent Events, for further detail).

If you have windows, use control F, if you have a mac use Command F to manually search documents for words. That's what I did, and the above quote is directly copied and pasted from their 10Q. That is why I believe the August Reverse Split is no longer the date. They did not mention from what I can find the new proposed date. I look forward to any and all feedback in regards to this matter.

You're all Welcome!

Sincerely, Your Master