MOBL - The PR is interesting BUT
1) How is it defense related?
2) 150 million shares outstanding.
3) toxic financing from 10-K -
On May 31, 2002, the Company entered into an equity line of credit arrangement with Cornell Capital Partners, L.P. that was terminated on October 16, 2002 and re-entered on the same day October 16, 2002. This agreement was in turn terminated on February 6, 2003 and re-entered the same day February 6, 2003. The equity line provides generally, that Cornell will purchase up to $10 million of common stock over a two-year period, with the time and amount of such purchases, if any, at the Company’s discretion. Cornell Capital will purchase the shares at a 9% discount to the prevailing market price of the common stock.
4) Having trouble paying even small notes outstanding according to 10-K
In February, 2002, as part of the Company’s President’s private purchase of stock, the Company entered into two (2) promissory notes of $37,500 each ($75,000 total) with the seller and a related entity to the seller. These notes were due September 1, 2002 at an annual rate of interest on the notes of 5%. Since the Company failed to pay the notes on the due date, interest will be charged at 15%. The Company paid one of the $37,500 notes with interest in September 2003, with the other note still outstanding as of December 31, 2003. The remaining note is under negotiation to settle all claims relating to the note. Interest expense on the two (2) promissory notes for nine months ended December 31, 2003 and 2002 was $7,749 and $3,642, respectively.
I am not a basher and would like to be convinced that this company's business plan will succeed and that the current capital structure allows for a value pps.
Current market cap is about 22 million and I haven't even figured in potential dilution and conversion. If I'm wrong, please let me know.
It seems years away from developing its patents, which I admit do sound great, but what about competition, which is only glossed upon.
Again, I love to take chances on developmental stage companies, but I prefer to do so with companies in the 20 million share range rather than 200 million share range. In the latter and given the company's history, there is likely to be a pump, a reverse split, and a dump, but not necessarily in that order.
All IMO - so convince me otherwise. |
