Replies to post #14037 on Ironclad Encryption Corp. (fka IRNC)

[tradenride]

Tuesday after hours

[Sean Portman]

Hey Chef. Here's some food for thought (pun intended :))

10Q for quarter 2
https://www.otcmarkets.com/filing/html?id=13072165&guid=0JexUF3pD-IxTMh
Derivative liabilities on convertible notes payable-$5,268,324
Total stockholders' equity (deficit)- $7,523,467

10Q for quarter 3
https://www.otcmarkets.com/filing/html?id=13237147&guid=0JexUF3pD-IxTMh
Derivative liabilities on convertible notes payable-$1,779,259
Total stockholders' equity (deficit)- $4,609,968

5,268,324/1,779,259=2.96
Derivative liabilities on convertible notes payable reduced by 2.96x.
Pps 10/01/18 .6c
Pps 12/31/18 .2c
6/2=3
3~2.96
You see where I'm going with this?
Pps 01/01/19 .2c
Pps 06/28/19 .0074c
.2/.0074=27
1,779,259/27=$66k of debt left???

7,523,467/4,609,968=1.63
Total stockholders' equity (deficit) has been reduced by 1.63x. What will the increase towards positive equity be for Q4 that will be included on 10k? (And next month in 10Q1)

NT10k
The Company has also entered into approximately 22 note agreements, of which 20 are convertible, in the last two fiscal years; 12 of the notes (all convertible) are outstanding at March 31, 2019 (there are also 12 derivative liabilities still outstanding of 16 since inception). In addition, conversions and warrant exercises have occurred on several of the loans, especially in the three month period ended March 31, 2019 during which the Company issued about 233,387,717 shares of its Class A shares.  The convertible loans have beneficial conversion features or derivative liability elements requiring sophisticated quantitative valuation efforts and reporting requirements at inception, at subsequent reporting periods, and on dates of conversions.  Due to these factors, IronClad needs additional time to complete its reporting on the Form 10-K for the twelve month periods of its new fiscal year ends.

MY POINT......my opinion, notes are done, or so close to done that it really won't be a big issue. We'll find out if I'm right any day or if not, next month in the 10Q1.
Like stated in NT10k "The convertible loans have beneficial conversion features or derivative liability elements requiring sophisticated quantitative valuation efforts and reporting requirements at inception, at subsequent reporting periods, and on dates of conversions".
Another way I've thought of looking at it, is-
48m listed as o/s in 10Q on 12/31/18
303m listed as o/s in NT10k 06/27/19
48/300~1/6
1,779,259/6=$300k
$66k-$300k left. I'm betting on closer to 66 or under due to amount of o/s increase. No promises, but that's what I see