There is no doubt the fins. sucked.
I'm holding to see what happens with the IPR in Oct.
What gets me about the loan is that $175,000 won't last. So I'm curious to see what is going to happen in the next 30-60 days. It's hardly a lifeline. Something material has to happen in the next month or two. Did Kay only barrow as much as he needed knowing money is about to roll in from an investor, is the loan an open amount, etc?
For anyone that wants to see a toxic loan, this is the loan that converted in the winter/spring of 2016:
"Convertible note holders converted $143,123 of principal, $49,560 of accrued interest and $386,352 of additional interest, or a total of $579,035, into 2,105,237,983 shares of common stock at conversion prices ranging from $0.000058 to $0.0008 per share."
The latest loan is not toxic:
"In July 2017, the Company issued a convertible note payable for $175,000, bearing interest at 10% per annum, and maturing in July 2018. At the option of the holder, beginning seven months from the date issued, the note is convertible into shares of common stock of the Company at a price per share discount of 42% of the lowest closing market price of the Company’s common stock for the twenty days preceding a conversion notice."
So IMO if SFOR is able to get money or pay this off prior to the 7th month (on or about 2/18) the note will only cost $17,500 in interest with no dilution. 10%!!
If the 7th month comes and goes and the lender converts, these are the numbers (please verify the math):
Note: I'm only using the principal with a 42% discount and I don't include the 10% interest in my calculations (keep in mind that the only shares being given up by SFOR are the line item "dilution/free shares" below):
$175,000 in principal @ different price points:
Retail price 0.005
175,000 X 0.005 = 35,000,000 shares @ full price
175,000 X 0.0029 = 60,344,827 @ discounted price
Dilution/free shares = 25,344,827
25,344,827/OS (2,319,698,886) = 1.1% of O/S
Retail price 0.01
175,000 X 0.01 = 17,500,000 shares @ full price
175,000 X 0.058 = 30,172,414 @ discounted price
Dilution/free shares = 12,672,414
12,672,414/OS = 0.5% of OS
Retail price 0.015
175,000 X 0.015 = 11,666,667 shares @ full price
175,000 X 0.0087 = 20,114,943 @ discounted price
Dilution/free shares = 8,448,270
8,448,270/OS = 0.36% of OS
EVERYONE IS MAKING A NONTOXIC LOAN INTO A BIG DEAL. THE DISCOUNTED PRICE INCLUDES THE PRINCIPAL. THE ONLY "DILUTION" are only 42% of the RETAIL SHARE PRICE.
This loan is actually a fair loan that appears to be structured around the time SFOR is to get monies from deals by end of 2017 as per Kay. And if Kay doesn't pay off the loan by the 7th month the lender gets some free shares THAT HARDLY IMPACT THE SHARE STRUCTURE.
IN MY OPINION.
EVERYONE NEEDS TO DO THEIR OWN DD BEFORE BUYING OR SELLING.
GLTA
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