Latest FAQs on Paychest Website
While waiting for more news from the company, the Paychest website was visited to see if any of the questions that were submitted to Tom Hands (Paychest IR) in June, had made it into the FAQ section, and if any answers were then provided.
paychest.com
No new questions have been added lately. However, upon review of what was there, the following comments are offered.
3. What are the revenue projections?
"The projected numbers are confidential for competitive reasons. The company will endeavor to disclose as much as possible without giving up its competitive advantage."
Comment: Without revenue projections being made public by the company, anyone on the boards stating as a matter of fact that the PYCT shares should be worth $0.05, or $0.10 or even higher based on FUNDAMENTALS without offering assumption details or their basis of estimate is just playing with shareholder emotions. The almost 28 billion shares outstanding is an significant anchor for share price appreciation. Share restructuring is needed to enable any real share price appreciation.
6. Is there production right now?
"Production is being prepared at this time. The company has established the supply chain and tested the newest version of the Flushaway product."
Comment: As is described below (in the Background), companies typically have some freedom to arbitrarily define when commercial production may start, including potentially considering some pre-production activities (such as Paychest is indicating in the question response by stating "Production is being prepared at this time."). Also, as I indicated, placement of long lead item/material purchases could fit into the definition of starting production. However, Paychest even went one step further to the left by indicating that the have established the supply chain, but evidently have yet to spend the money and place the material orders. Based on this, and assuming the Paychest website is close to being factual and current, then who really has any idea if the end products actually are being produced at this time some (9 months after announcing production commencement).
------------
Background - When Paychest issued the Nov. 2011 PR regarding commencing commercial production of Flushaway and/or Mibella it could have meant and represented many possible prerequisite production related activities, and not the actual starting of the final end product runs (assuming they are even responsible for the end products). In considerations such as this, it's generally semantics and stems around the question of how far back in the overall process a company wants to start taking credit for beginning production activities. I've seen, and been in, companies where the production run precursor activities were considered and portrayed to the customers as the start of production. What Paychest qualifies as their start of production is anyone's guess until they come out and explicitly define what they mean. Here are a couple of typical defined start of production activities.
- Engineering production drawings completed and released, or
- Production planning paper (e.g., manufacturing step by step instructions, inspection points, batch lot testing, etc.) completed and issued to the manufacturing floor, or
- Long lead material orders placed, or
- Tooling fabricated and/or procured, or
- Production machines calibrated and serviced, or
- Etc.
------------
The question posed to the company regarding the Flushaway and/or Mibella end product responsibility still has yet to be answered. As far as I'm aware, the PR regarding Xinpro only mentioned the Film Machine procurement and installation. Nowhere have I read in any company published information if Xinpro has full responsibility to produce the final end products and/or the product packaging. If anyone on the board can point to such publicly available information (with a link) it would be appreciated. And please, don't say the information, along with millions of pads and liners, are sitting in some storage locker at the as yet to be located Xinpro manufacturing plant. Likewise, please don't tell me I have to travel to NY and meet clandestinely with some shareholder to get the info. lol
11. Does PayChest own the Flushaway® patents?
"PayChest acquired the license to sell Flushaway® in most of the world territory. PayChest also acquired the exclusive license to production for the entire world for “Flushaway”."
Comment: The specific question of owning the patents wasn't answered, it was side-stepped. Paychest continues to spend significant funds (that they have to borrow) for retaining the technology agreement licenses. I still don't understand why the company doesn't push for and strike a deal by offering to only pay a royalty once the end products are selling. Then the company could instead use their very limited borrowed funds to produce and market the Flushaway and Mibella products.
12. How does PayChest pay the bills?
"PayChest has been funded by private sources."
Comment: I find this answer elusive and somewhat disingenuous. As identified in the Paychest financials, the company has previously issued massive amounts of commons shares to pay bills for "services" rendered (such as for Investor Relations). Have they issued more common shares lately, especially in light of reason stated for the on-going legal DTC "Chill"? It's hard to say as the TA won't currently divulge that info to the investment community. Will just have to see in the next financial report. |
