Thank you, Mr. Jouver, I too feel especially lucky.
With regard to the financial statements, you are hardly a doofus. The problem is in finding them. They are buried deep within the B.S. that precedes them, beginning on page 24.
The following is my interpretation of the financial statements, and my opinions, only.
If my memory serves, the combined sales of both companies through the nine months ending 9/30/99, was $13,017.00! Is this possible? You do not have to be a whiz, to know that this is a real problem. Why, your kid could sell more old toys at a flea market, than this. Unbelievable!
Total operating expenses, for the same period, were $1,133,565.00, verses $ 334,001.00 for the same period in the prior year.
You can spend all the time you wish, thrashing through this report; but, take it from a corporate president, they are in very, very deep doo doo, just in these two areas. Add the fact that they have over 70,000,000 shares issued, with authorized shares set at 100,000,000, and you can see that the potential for any per share appreciation, is very far away, if at all possible, without a serious 10 for 1 reverse split.
I believe that a Kiosk program may be successful in some areas; however, I find it highly unlikely, that they will be used, often enough, at the rates quoted, to make this program successful, as the program is now structured, and in the market they have targeted.
On page 42, note the employee compensation plan. This should do you in, if the lack of sales, and increased expenses don't. It offers generous stock options, at very attractive prices.
On page 43, they put in the consultant. He too has nice options.
On page 44, read on. The company does not receive all the revenue for the Kiosks. It would appear they have entered into a sales agreement. You can read about it there.
I quote:
"During October, 1999, 308,333 restricted shares of common stock were issued as consideration for amounts owed for legal fees totaling $73,750. The September 30, 1999 financial statements included an accrual for legal fees, which include the $73,750. Also, the September 30, 1999 financial statements included an expense provision for the $37,000 difference between the $.24 agreed upon price of the stock and ninety percent of the market value of the publicly traded stock."
Paying for everything with shares, dilutes ownership, making per share appreciation less, and less possible, without a serious reverse split.
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