InvestorsHub Logo

gumbie05

09/07/17 7:40 PM

#27896 RE: jacksira #27894

Your quote;

"I think we have hit 1 BILLION by now. Was dead broke, 25,000 in cash, and was discounting account receivables because no cash flow. If you pay down debt and increase the OS number what have you gained? Accounting gimmick? What and where does the money come from for all this "record" distribution?"

If the dilution is "within reason" (i.e. No more than 25% annually for a micro cap) and it goes towards repayment of hard money (High interest) loans in order to free up cash flow then that makes sense. But if the dilution is excessive (i.e. 25-50% per QUARTER) and the company is still a negative cash flow operation and continues to take on more Convertible debt simply to plug the losses every month....that is the definition of a Death Spiral!!
- SMH