Dave, Do you recall Myriad's purported sales?
They were around 45 million. So, if the Myriad numbers were somewhat accurate, then he wouldn't be far off on that statement. The revenue figures for various prospective periods have been scaled back, scaled back, and scaled back some more. The newest number, if accurate says there wasn't any Firamada business brought to the table. I wonder if that was why the earlier deal fell through. No value to the sellers if they received stock.
Nevertheless, revenues do not equate to positive cash flow or profit. Bleeding to death is the same end result as sudden death. Two companies in the picture had serious problems with paying their taxes. It appears neither could afford to and remain viable. The evidence so far suggests the resultant "death" is just delayed. The strong negative cash flow is really bothersome.
Two issues about Randy's statements today are noticeable to a sceptic:
1) Although no shares may have been issued between May and Oct 16, there are still 6+ months available for selling, and with only 235,000 in assets at 1/1/98 and a dramatic cash burn, they probably had to do something.Whether or not "outstanding" shares are addressed, makes little difference. Retiring those issued for inadequate consideration only allows them to be reissued at what 0.02 to 0.07 each. This gives painful meaning to a "penny" stock.
2)Even though the SEC had only made informal inquiries to date, they, or the State of Texas could be just waiting for the proof as evidenced by the audited numbers. Saves them from having to pay for the audit. The key here is whether there have been written complaints filed with the respective agency. Civil shareholder actions would be a real drain, but the other coin, dealing with statutory "deficiencies" could reach those responsible. Assuming they are "Incorporated", the possibility exists for business continuation while meting out a dose of what is right to those who deserve.
The question remains, what are the probabilities that profitability can be obtained in the current form, within the next few years. The issue is where can ops money come from to pay the tax man and produce positive cash flow. Issuing shares alone can only buy a short stay of "execution". |
