There are plenty of PennyStocks like this one
which have great promise...where you are
encouraged to hold them as they are heavily
diluted...while actual revenue remains
virtually non-existent.
A glance at the DTC Chill List...
will show you lots of stocks
which have several things in common:
little or no real revenue, low net worth,
excessively high number of outstanding shares,
and often there are also regulatory issues.
For example, in this case,
there is lack of full financial disclosure.
(For details see the Comment Letters @ SECdotGov)