You didn't read between the lines of that lip service you were given?
1. A typo would have been corrected, mistakes cannot be left to stand in SEC filings.
2. Production still in the works? Over a month ago there was a PR saying it was nearly finished and shipping would have been completed by now. Be wary of delays of self imposed deadlines.
3. Cory said they 'will' get their money back first. Did he forget a previous PR where the entire production run was pretty much already 'sold out'? He would have received money by now.
4. When he mentions in the PR, "stores such as Nordstroms.." it does not mean there will ever be product in Nordstrom, and it's Nordstrom by the way, not Nordstroms as in the PR and 8-k.
5. If Johnny has informed Avitar where the shoes are going, why couldn't Cory inform you?
6. "No Plans of dilution" is a famous Pink Sheet CEO term. They never say "there will be no dilution."
7. A few old convertible debentures??? Isn't AVTI a reletively new company? This brings back the issue of the NIR Group and AJW Partners debt of $6M or so from the 2005 AVTI filings. I would consider those 'old debentures'. Given the filings stated those mature between September 2010 and December 2010, I would be watching the A/S very closely. I'm pretty sure it will multiply soon.
8. Major talks with whom? He can't say because of regulation FD? Issue a PR then.
These are the red flags I picked up on from your post, there may have been more, but I didn't hear the entire conversation.
Good luck. You might want to check out the boards of Gelmon's other companies. You will see many people who have got off the phone with him feeling great about their investment. I'm going out on a limb, but I don't think that after a 1:100 R/S or being diluted to zero bid, they still feel the same.
Also note the membermark average of people who are impressed by those types of phone calls is always very low, indicating lack of experience.
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