Do you homework...read the 10-Q carefully.
Shares outstanding currently: 15,892,011
Plus the shares reserved for issuance:
At March 31, 1998, common stock was reserved for the following:
USPLC and CEI contingently issuable shares 4,573,686
Exercise of Series A and Series B Warrants 1,830,852
Conversion of Preferred Stock 1,537,102
Nonemployee stock options 575,790
Employee stock options 1,500,000
Shares and options contingently issuable under
earnout provisions 244,500
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10,261,930
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So you get 26,153,941 shares outstanding. You can use the warrant and option proceeds to pay off the debt of the company.
26.2MM shares x $5 stock price = $131.8 million dollars
Look at the 10-Q. This company has $7.6 million of
net property plant and equipment. This is no internet company.
This is a manufacturing company.
Some may say, the PP&E isn't important because the company has
so much intellectual property that the company can use its
PP&E more efficiently. Let's see... cost of goods sold as a % of
sales = 79%!!! So the $7.7 million of sales translates into only
$1.6 million of gross profit. By the time you subtract the
operating expenses this company makes a $15,000 of profit (this is
before interest expense), otherwise they lose money.
I received a fax from the general counsel of the company telling me
that I was trying to smear the company. I'm just commenting on
the results in the 10-Q filed with the SEC. I would welcome the
company to make a rebuttal.
Brian Roberts, a former investor
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