Bill, you must be careful with "shares for quarterly accounting" and outstanding shares at the end of the period. As of June 30, 1999, they had 123,000,000 outstanding (see the beginning of the document), the whole difference between the 90 MM was conversion of debentures to about 33 MM shares (at an average conversion price of $.052). All of this prior to June 30th. The TA will probably be able to give you the current count. At June 30, 1999, there were still 1,150,000 in debentures outstanding. But since they had only $80,000 in the bank ($30,000 of which apparently "frozen" for some predetermined liability), you must assume that they would have had to increase the draw from the debenture to carry them through Sep. 30. That would be another $1,700,000 if we assume last q expenses to be the same as this q expenses (By the way, the LL payment of $660,000 was not carried as expenses but as "deferred assets" a strange denomination.).
You got to take very seriously the "going concern" citations. TSIG owes close to $500,000 to the IRS, and these guys have been known to come in and take whatever is not fixed to the floor (G). Their total short term liabilites and payable are at $2,800,000 and that should be added (or a good chunk of it), to the cash required for this quarter of $1,700,000 or so. So, even if by some miracle, the last quarter of the year is profitable (and it is my stated opinion that it will be a dud like the last few quarters), the company must rapidly find $4,5 MM to pay for burn rate in this quarter and outstanding liabilities. At $.045/share (just rounding) that is 100 MM shares, and add to that the $1,150,000 of still outstanding floorless Debts as of June 30, you face mabe another 25 MM shares for a grand total of 250 MM shares.
I have not counted another 11 MM shares due to the settlement, nor options to amangement (about 17.5 MM shares, but worthless unless repriced, as they have done before). It looks as if the next step of the company will be asking for the authorization of more shares.
Zeev |
