The only surprise really is the failure to complete the move and expansion of production (partially due to lack of funds). Even then .... production was expanded anyway ... 2X ... by virtue of the change to the growing cycle, i.e. cutting it in half.
The rest is a waiting game and boilerplate. HEPI already stated they've shipped a bigger order to Xooma in April that exceeds the revenue of the entire 1st qtr ... and expects to be shipping at least 1 more order before the end of the 2nd qtr. So I'd expect revenues QoQ to at least triple. Interesting mention of testing into the 2nd half of 2011. 2nd half is only 4 weeks away. No kidding.
As to funding ..... the same language has been in the SEC filings for YEARS ..... company is still plugging away is it not ? Judging from the conversations I've had with other shareholders .... seems dilution is high on everyone's mind. Everyone forgets HEPI is actually SELLING PROODUCT now and has incoming revenues ...... which of course offset the need for funding. Presumably the sales will continue on a strong upward path as long as HEPI can deliver product and PAZ continues to produce results. Personally I'd like to see those funding HEPI provide more traditional debt based financing rather than cheap stock and warrants. That has already diluted the stock over the past couple years and is part of the reason for the decline (not to mention lack of shareholder contact). Interesting to note that 1.5 million 10 cent warrants expired last qtr.
There is no doubt in my mind there have been missteps, miscalculations, poor resource mgmt, unexpected delays, etc .... but it still doesn't change the fact that PAZ works and money will still be available to HEPI as long as testing says PAZ works and it can be ID'd. As I've said before, I haven't been buying the stock for Xooma, I have been buying the stock for what can happen after the ID. Food Additive and nutraceutical/ingredient markets are huge and are definitely where PAZ, or some derivative thereof, need to be. That is where the money will be. If there is a true discovery here, and so far, it still appears that is the case, pharma licensing is still a possibility down the road. I am certain that HEPI will add another research partner ..... and I am certain that HEPI .... having the last 2 years of experience behind them .... will select a partner they believe comes to the table with all the necessary capabilities required to complete the ID process in full.
What I also find interesting is that HEPI has been keeping some other things under wraps .... like a patent application filed last November both in the US and Internationally. Things they don't mention in the filings that SHOULD be. The application was published last week by WIPO and is an interesting read .... I only wish that I understood more of the science to it as it is very technical ..... but it talks about PAZ, Fraction 3 and Fraction 4 and how they are derived and tested. Based on the information, this Fraction 3 referenced seemingly packs a punch and is probably the target of all the recent testing.
If one does some digging you can find several US patent app numbers that have been filed as well. Lotta mentions of inflammation. If you are looking at trends in the marketplace, inflammation is the growing elephant target in the science world.
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