The rumors and guess were that they were waiting to be current before releasing the numbers.
The company has never stated this but rather IHub posters have stated this.
To simplify the discussion with snow and others here is what is the closet we currently have to facts. Rumors are constant but ready the filings allow for a rather factual synopsis of what is occurring.
For starters here is some data to work off of.
Property and equipment Q1-2012 $211,969--Q1-2011 225,007
Cash and cash equivalents $625
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
1,746,953,540 as of July 12, 2012
During the period ended March 31, 2012 we accrued $63,700 of interest expense on the outstanding principal balance of our notes payable in default totaling $65,585 as of March 31, 2012 and December 31, 2011. The individual notes carry daily interest penalties between $100 and $500.
Net cash used in operations 136,135
They have raised 101k in Q2 through stock sales.
Our ability to raise capital since we received the Caveat Emptor status on December 13, 2010 has been restricted.
We expect to have the Caveat Emptor status removed as soon as this Quarterly report is filed which will cause our ’34 Act filings to become current. Upon removal of the Caveat Emptor status, it is anticipated that the increased liquidity potential for our investors will have a positive impact on our ability to raise additional capital from private placements and future warrant exercise
Ok time to try and put this together.
The company is obvious cash flow negative and requires additional share dilution to keep operating. That is known and common on penny stocks. So far they have not generated enough capital to go through Q3. Dilution for cash is mandatory still.
The companies assets are lower Q1 of 2012 than Q1 of 2011. This mean a lot since it demonstrates that there is no processing equipment still. A year later and no ability to generate revenue. Its not the exploration license that actually matters but rather its impossible without equipment to generate revenue.
The company clearly stated the real reason why they focused on the CE removal and uplist was so they can do a large Private Placement offering. This will yet again create a large dilution of the OS and will fund the purchase of processing equipment.
Whether under exploration or mining license the PP is the only truth to why no revenue. Expect another few hundred million to be offered at discounts to market along with warrants to purchase the equipment. The next PP should put us over 2b OS and around 3b fully diluted. Currently we are 1.7b OS and 2.4b fully diluted.
Now the question is when to expect the dilution. Well the company stated they will have cash flow in Q4. This means the Private Placement is required very soon. It will take time to order, ship, and assemble the equipment and we are quickly approaching the half way mark on Q3.
Odds are very great that the T trades hitting the market are third party sells as a result of corporate dilution for funding. This will be need to keep operating while they prepare the large offering for equipment. Odds are great that some time in 2013 there will be a large reverse split. If the company is cash flow positive it could be taken as a positive but if cash flow negative it will really harm the shareholders.
The company has a very very large dark cloud over it right now. We all wait the numbers behind the next offering and an expectation on equipment to begin to separate and generate revenue. I feel they could take till Q1 or Q2 of next year to assemble the Pilot plant.
Now as for Hazen well that is not a positive. They have now taken the same material to a third lab. This creates massive delays and further OS increases. Bottom line it hurts shareholders. SNEY cannot begin to ship raw material to Hazen. It would be illegal. There is no export license for Allied Mining and supply nor Sunergy. They will need to first purchase a license to do this.
It would be nice to see the Q2 finalize the debt reduction and clear up the warrant numbers. Also we will get an idea of how much of the 101k in funding is left. I am expecting an OS of just over 1.8b in the Q2 filing. A small increase do to continued dilution for funding. Q3 is were the OS is expected to cross over 2 billion.
Good luck all.
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