Could someone help me out here? I am doing some simple DD on Insq and have run into a couple of problems. I really want to know what the current OS and AS is?
I went to the Nevada Secratary of State to find the Corporate report ( where they claim they are registered) and I couldn't find anything? The previous entity called Incode Technologies has expired or merged and no other current record can be found?
Accourding to the latest 10 Q the share count is:
The number of outstanding shares of common stock as of November 14, 2005 was: 3, 887 , 491 , 043.
Of course this was over 4 months ago so I would assume based on past performance that it must be an addition 1 billion shares to this figure?
As I continued to do my research I found that Jim Grainer, Pres. & CFO has been activly dumping his shaes very methodictly and as fast as he can yet as slow as he can not to alarm the common share holder? Why here is the form 4's he has filed:
Common Stock 1/11/2006 2500000 D $0.0016 122500000
D
Common Stock 1/12/2006 2500000 D $0.0017 120000000
D
Common Stock 1/13/2006 2500000 $0.0016 117500000
D
Common Stock 1/30/2006 1100000 $0.0011 113900000
D
Common Stock 1/31/2006 800000 $0.0011 113100000
D
Common Stock 2/1/2006 500000 $0.0014 112600000
D
Common Stock 2/3/2006 5000000 $0.0021 107600000
D
Common Stock 2/14/2006 1000000 $0.0012 104500000
D
Common Stock 2/15/2006 2000000 $0.0013 102500000
D
Common Stock 2/16/2006 2500000 $0.0012 100000000
D
Common Stock 2/21/2006 875000 $0.0011 99125000
D
Common Stock 2/23/2006 4125000 $0.001 95000000
D
Common Stock 2/6/2006 1000000 $0.0016 119100000
D
Common Stock 2/7/2006 3000000 $0.0017 116100000
D
Common Stock 2/8/2006 4000000 $0.0014 112100000
D
Common Stock 2/9/2006 2000000 $0.0011 110100000
D
Common Stock 2/10/2006 4600000 $0.0011 105500000
D
He unloaded 17, million shares in one months time! Not only that but the latest 10Q list the BUSINESS RISK FACTORS
as the following.....
The issuance of shares under our agreements with Cornell and Highgate could increase our outstanding shares by over 9%.
The conversion of our convertible debentures, the exercise of our outstanding warrants and options and INSEQ’s various anti-dilution and price-protection agreements could cause the market price of our common stock to fall, and may have dilutive and other effects on our existing stockholders.
We may be unable to satisfy our current debts.
We lack capital to fund our operations.
Our operations will suffer if we are unable to manage our rapid growth.
We may have difficulty integrating our recent acquisition into our existing operations.
Our use of percentage of completion accounting could result in a reduction or elimination of previously reported profits.
We will be unable to service our customers unless we can continue to retain top quality subcontractors and equipment manufacturers at favorable prices.
Our failure to attract qualified engineers and management personnel could hinder our success.
Key personnel are critical to our business and our future success depends on our ability to retain them.
Some of our existing stockholders can exert control over us and may not make decisions that further the best interests of all stockholders
INSEQ is not likely to hold annual shareholder meetings in the next few years.
Investing in our stock is highly speculative and you could lose some or all of your investment.
The volatility of the market for INSEQ common stock may prevent a shareholder from obtaining a fair price for his shares.
Our common stock qualifies as a "penny stock" under SEC rules which may make it more difficult for our stockholders to resell their shares of our common stock.
Only a small portion of the investment community will purchase “penny stocks” such as our common stock.
The Company had $4,164,899 in liabilities at the end of the quarter ended September 30, 2005, primarily consisting of $1,481,956 in convertible debentures owing to Highgate and Cornell. INSEQ expects most, if not all, of the debentures to be satisfied by the holders converting the debts into the Company’s common stock that they will then resell to the public. Satisfaction of both debentures would require the issuance of over 350,000,000 shares of common stock. Accordingly we will be required to issue over 7% of our equity to satisfy the debentures or will be required to find other investment sources to satisfy the debts
/S/ JAMES GRAINER
JAMES GRAINER
Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer
Date:
November 15, 2005 |
