Replies to post #52652 on American Scientific Resources (ASFX)

[dannol48]

Well, I don't see a $6M loss for the Q. I see $785K net loss. Was that call based on something one-time perhaps?

I'll track back (with your posting) to see why you made that call and the other points you mention and post later with the exception of your last comment.

The 90% drop is simple: no one likes an R/S with unknown future with untried product, and this is the first quarter that suggests they finally have a product that can get real market interest and it's demonstrated by the early numbers and recent PRs on expansion to retail Canada and Japan markets.

Turn-around plays are always a watch and see. Is this one ready to reverse or is another quarter needed to verify growth? Is the quarter unusually high with first round sales or is this just the beginning of an expansion? One thing I can't ignore is a quarter topline unlike anything on record. Oh, and I'm not turning a blind eye to the "baggage" issues.

Take-down rings can also produce a major over-sold situation, so I'll look more carefully at prior discussion on this and other boards.

This is one I've tracked on my watch list for several years with no prior trades. It's the first time I'll move it to my interested list.

[alwaysdreaming]

I believe you also predicted that ASR would not uplist.

[dannol48]

In trying to understand your $6M Q3 and $12M YTD loss prediction, it looks like your basis was from the total loss YTD of $6.1M reported in Q2. However, that quarter by itself did have a large amount of one-time with the single largest being the issued options. Here's a quote from the Q2 report on Net Loss:

"The net loss applicable to common shareholders was $4,009,697 for the three months ended June 30, 2011 compared to net a loss of $814,298 for the same three month period in 2010. As discussed above, the significantly higher net loss was primarily due to (i) the expensing of stock options issued to directors, employees and professional advisors, (ii) the charge resulting from triggered anti-dilution provisions within certain convertible debt agreements, (iii) fair value changes within derivative instruments, (iv) higher interest expenses, (v) higher other operating, sales and administrative expenses, offset by higher gross profits on sales of our products."

With regard to the options, this quote from Q2 report can help explain the valuation on the books:

"Stock Option Plan. In June 2011, the Company’s Board of Directors approved a stock option plan authorizing the award of up to 100,000,000 options to purchase common shares as incentive stock options or non-qualified stock options at exercise prices, vesting periods and terms (up to 10 years) as determined by the Board of Directors or a designated committee. In June 2011, the Board of Directors awarded 5,295,000 options to directors, employees and consultants, exercisable at $0.40 per share over 5 years with immediate vesting as compensation for past services. The closing market price of the Company’s common stock on the award date was $0.32 per share. Based on application of the Black Sholes pricing model, the Company determined the value of the options awarded to be $1,691,126 and expensed this amount as operating, sales and administrative expenses on the date of grant."

Remember, they have to pay .40 per share to exercise those options. Hopefully, a good sign on what insiders see in out years for the business.