"approaching profitability"?
Their gross profit increased 250%, their loss went up 900% over same Q last year.
Even with $900k in stock-based compensation, they burned through over $300k in cash, $225 to purchase a customer list. I'm guessing that wasn't from an unconnected 3rd party.
On top of that, they diluted 100 fold in less than 2 years.
In addition, they still have the death spiral convertible, they still have 120+ billion votes for the preferred shares and another convertible note for 1.3 million.
"On December 4, 2010 the Company entered into an asset purchase agreement with Pro Line Sports, Inc. (“Seller”) to purchase one hundred percent (100%) of the right, title and interest in the Seller’s tangible and intangible assets for $225,000 cash due immediately and $1,349,820 to be paid over four years in cash or shares of common stock at the option of the Company. On February 11, 2011, the $225,000 funding was received and the sale was made finalized. The $1,349,820 note has been recorded as a related party note payable (see Note 4)."
It doesn't specify the conversion rate, but since last year "The Company also issued 1,756,650,522 shares of its common stock for conversion of debt and accrued interest valued at $512,448 during the same nine-month period. Principle converted totaled $484,441 and accrued interest converted totaled $28,007." they issued 1.76 billion shares for a $512k debt, and the stock price was higher, I'm guessing it's going to take the rest of the A/S and then some to get the $1.3 million loan paid off.
And of course, that means either another increase in the A/S or a reverse split. With the price at $.0001/.0002, I'm thinking the latter.
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