I too had a chat with the CEO...on Saturday. It's been my 2nd chat with him and we have exchanged messages on LinkedIn. He is indeed extremely good about communicating, I'll give him that for a pinky CEO. He knew going into the call how upset I was with all the dilution and I wanted answers, yet he called me back. Well he gave them, and they are consistent with the info you provided in your post which is to be expected, but I went further and wanted to understand the substantial dilution after going with a AS count of 650M for the last 2.5 years. It's now 2B and the OS and float have doubled at least.
The main reason he had to dilute was to pay for the audit....biggest cost. He had to go back to 2008 and getting it done professionally for the past 9 years is costly. I asked him why he didn't leverage the $300K credit facility to help fund this and he said he couldn't because the audit costs had nothing to do with company growth and in order to get the credit facility with the bank, that was the major stipulation. He can only draw upon it for growth initiatives.
We chatted for 30 minutes. Nice guy. Bears fan. My biggest problem is that I think he is trying to go too big too fast with this multi-million in sales company acquisition.
So my take away is that this is still a major lottery ticket. A RS is unlikely, but not off the table. The audit is the next big step and I feel 75% sure he'll make it happen by the end of June. He came across as an ethical person trying to build a company. Reach out to him yourselves, he will get back to you in a reasonable amount of time. He understands the investment community frustration with the dilution and is willing to be a big boy about it with angry callers. GLTE invested.
News 
Market Data 
Discover 
