<the number of outstanding shares is large and appears to be increasing.> Appears to be increasing at a fantastic rate and is ready to further explode,good luck and some are wondering where the selling is coming from,pretty obvious,IMO and looks like it will continue to beat the stock price back.210 million shares outstanding and counting...er, multipling...DD(looking for an increase in authorixed to 500 million or a reverse split)
A few facts you love to overlook....
"a working capital deficit of $3,504,036. The Company has frequently failed to make timely payments to its trade and other creditors. At September 30, 1999, the Company had more than $1,400,000 in past due trade and other accounts payable, ***which has affected the Company's ability to purchase necessary goods and services in a timely manner****. The Company is also delinquent in its payments of its federal payroll tax liability, including penalties and interest, totaling $526,000 at September 30 and $561,000 at November 12, 1999. The Internal Revenue Service has filed a lien on the Company's assets for a total of $262,000 for the fourthquarter 1998 liability and is currently seeking immediate collection of $38,000for the 4th quarter 1998 and the 1st quarter 1999 for subsidiary accounts (MyMusicCard Company). In addition, the Company is assuming the liability for thetrust portion of payroll taxes totaling $475,000, which was not paid by VSI atthe time of its bankruptcy filing."
Where is cash coming from,with revenues of 50K last quarter? shares, shares, and more shares....and a boatload to come
"In connection with theoffering, shares of common stock were placed in escrow, of which 6,691,836 shares remain in escrow and are not considered issued or outstanding unless anduntil released in connection with future conversions."
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Beginning in August, 1999, the Company initiated a financing throughthe sale of convertible preferred stock priced at $2.00 per share. Thepreferred shares bear a preferred dividend rate of 10% and are convertible into shares of common stock at a price of $.05 per share and an equal number of warrants for the purchase additional shares of common share at an exercise price of $.20. ****As of September 30, preferred stock totaling $440,000 had beensold. Subsequent to the end of the quarter, an additional $180,000 has beensold as of the reporting date.*****
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ITEM 5. Other Information:A. On August 17, 1999, the Company entered into a six month agreementwith Joseph F. Morgan for financial management services. Pursuant to theagreement, the Company agreed to pay a fee of $90,000 and granted Mr. Morgan an option to purchase 35 million shares of common stock at $.10 per share for a period of three years, half of which shall not vest unless the agreement isextended for an additional six-month extended term. The agreement includes"piggyback" registration rights and provides that if the underlying shares are not registered within six months, the exercise price may be reduced down to$.05 per share.
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On August 20, 1999, the Company entered into an agreement with TitanGulf Partners, Ltd. for business management services in connection withbusiness development in the European Union markets for the "myCard" programs.Pursuant to the agreement, the Company issued 15 million registered shares of common stock as compensation of services, 10 million of which are being held in escrow until services are completed and are not considered outstanding
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Pursuant to his Agreement to Serve as a Director, Mr. Ragano was granted options to acquire 900,000 shares of the Company's common stock at an exercise price per share equal to $.05.
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Related Party TransactionsA stockholder of the Company has made various demand loans to the Company forexpansion and operating capital. As of September 30, 1999 loans payable to astockholder totaled $651,291, accruing interest at 11% per annum, plus $175,000in unpaid accrued interest. The loan is payable on demand and is uncollateralized.
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And now this
"On November 16, 1999, the Board of Directors of the Registrantincreased the number of shares of common stock authorized to be issued under the TSIG.com Plan from 25,000,000 to 60,000,000. The 25,000,000 previously authorized to be issued under the TSIG.com Plan were registered in the priorregistration statement. This registration statement registered the additional 35,000,000 shares authorized to be issued under the TSIG.co Plan.
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