SYEV -
6.5M warrants outstanding. 4.5M of them included in diluted share count. IMO slight negative.
Reverse merger company. Not Chinese though, so it must be OK. :P
Company restated financial results for 2009: "On August 27, 2009 the Company was informed that the Public Company Accounting Oversight Board ("PCAOB") revoked the registration of Moore & Associates who was serving as the Company’s independent registered public accounting firm. The revocation was a result of Moore’s violation of PCAOB rules and auditing standards. As a result, Moore & Associates was not licensed to issue an opinion on the Company’s consolidated financial statements for the fiscal year ended February 28, 2009. During the reaudit of the 2009 consolidated financial statements, we identified misstatements to our previously filed financial information as reported on our Form 10-K as filed on May 22, 2009. These misstatements during fiscal 2009 were the result of the improper recognition of an airplane recorded as an asset held for sale within current assets and a corresponding related note payable classified within both current and long-term liabilities in 2008. The Company ultimately disposed of the airplane and recorded the sale. The Company also incorrectly classified warrants issued on settlement of amounts due as prepaid expenses in the amount of $56,243. Certain amounts reported in the income statement were also reclassified. The restatement reflects the reversal of all transactions related to the acquisition and disposal of the airplane that was never in fact owned by the Company." - well, it's not a Chinese reverse merger co, so these are not the droids you're looking for... wait, airplane? No, never mind. :)
Lots of sales to emergency relief and NGOs. I am not sure whether to count this as positive or negative. On one hand, these could be considered "sophisticated" buyers. On another hand, these organizations are sometimes persuaded to buy either inferior or overpriced products.
Company uses and plans to use MLM for sales...
"As of February 28, 2010, we had a President and two (2) executive employees managing the Company with two (2) administrative employees supporting that effort. In assembly, operations and warehousing we had two (2) full-time employees and two (2) independent contractors working to fill orders. " - so 8 employees equals multimillion dollar co with "over 100 years of combined experience in developing improvements and innovations in the field of bottled water, reverse osmosis, ultra filtration and filter technology."...
On the positive side, CEO, EVP and CFO take very little salary. 44% shares are held in CEO granddaughters' trust. Granpa wouldn't defraud his little ones, would he? :) Ah, but the grandkids provide valuable consulting: "During the nine months ended November 30, 2010, payments totaling $58,999 were made to the TAM Irrevocable Trust as compensation for consulting."
Obviously if the company continues to sell its bottles like pancakes the stock is cheap... :) I'll skip it though. |
