re TVOC - stock pick by inchingup.
As truthseeker on SI often quips this is a company that is in the business of selling shares not product or services.
NO REVENUES - note the irony - He claimed that he doesn't pick speculative stocks, only "SURE WINNERS."
I'd say LBWR is looking pretty damn good in comparison.
d) Liquidity And Capital Resources
The company’s business activities during the three and nine months ended September 30, 2006 were funded principally through the sale of 78,750 and 162,000 shares of Class A Preferred to accredited investors for aggregate proceeds of $315,000 and $648,000.
During the three and nine month periods ended September 30, 2006, the company issued 554,500 and 885,234 shares to business consultants under its Business Consultants Stock Plan in exchange for ongoing corporate legal services, internal accounting services, business advisory services as well as legal fees and associated expenses for ongoing patent work and litigation. As of September 30, 2006 there are 164,625 shares available for future grants under the plan.
Through September 30, 2006, James and Keith Gleasman continued their working arrangement with the company that assures the company with continued access to the Gleasmans’ expertise without unduly burdening the company with the costs associated with the payment of consulting fees. Under this arrangement, James and Keith Gleasman provide consulting services and assign new patents, existing patent improvements and all know-how in connection with all their inventions to the company. In addition, Keith Gleasman serves as president and as a director and James Gleasman serves as chief executive officer, interim chief financial officer and as a director.
At September 30, 2006, the company’s cash position was $160,000 and the company had a working capital deficiency of $1,515,000. The company’s cash position at anytime during the fiscal quarter ended September 30, 2006 was directly dependent upon its success in selling Class A Preferred since the company did not generate any revenues. The company believes that current, ongoing discussions with governmental agencies and private sector companies worldwide could very well create a revenue producing transaction during fiscal 2006. However, it can not predict when such a transaction will be consummated and therefore, the company does not know whether it will generate revenues from its business activities during fiscal 2006. The company secured a funding commitment from a stockholder and officer to fund operations, through September 30, 2007. As of September 30, 2006, there have not been any advances made under this funding commitment.
From October 1, 2006 through November 1, 2006, the Company sold 50,000 Class A Preferred Shares for proceeds of $200,000.
During the three and nine month periods ended September 30, 2006, the company had accounts payable and accrued expenses of $1,733,000, of which $1,653,000 is attributable to our ICE subsidiary.
The company has an obligation to repurchase 51% of Variable Gear, LLC on January 1, 2008. The purchase price is equal to 51% of the then value of Variable Gear as determined by an independent appraiser selected by the parties. This liability can not be estimated at this time. We believe that a combination of cash flows from operations, financing and strategic alliances will produce sufficient cash flow to fund this obligation. The company is also exploring alternatives with Variable Gear, LLC to relieve the company of this obligation. |
