Replies to post #60106 on CYduct Diagnostics Inc (CYDX)

[mgrego]

It may seem like significant amount of Preferred shares but these shares represent a portion of the company's short term debt (Current Liabilities). Preferred stock is being used to finance debt.

1Q Financials

Total Assets $2,327,638

Total Liabilities $173,760 with No Long Term Debt

Now break down Current Liabilities

Accounts Payable $117,720 ---> inventory expenses and CE Mark expenses
Preferred Stock Payable $55,000 ---> Important line

These 47,356 shares of Preferred stock represent $55,000 in short term debt for the company.

Preferred stock --> Conversion to common shares --> Decrease in Current Liabilities

During the 2Q, the company has been actively reducing its Preferred stock related short term debt.

SNDY has the ability to buy back its Preferred stock (not through conversion to common shares) but with cash.

GLTA

[mgrego]

Check out the difference in Current Liabilities between the 1st and 2nd quarter.

2013 1Q/2Q Report

1Q Total Liabilities $173,760/2Q Total Liabilities $148,000

14.8% reduction in Total Liabilities with No Long Term Debt posted in either quarter

Now break down Current Liabilities

Accounts Payable 1Q $117,720/2Q $121,960

Now the key line

Preferred Stock Payable 1Q $55,000/2Q $25,000

The company reduced debt related to Preferred Stock by over 50% or $30,000. All that remained as of June 30th was $25,000.

The company is buying back its Preferred stock related debt with common shares. This doesn't include any reduction that took place during the months of July or August.

Also check out Note 11: Material Contract. In April 2013, the company canceled its previous contract and entered into a new contract to be billed for time spent on a monthly basis.

GLTA