scoob and snowcloud here's the report. Let me know what you think. Scoob, sounds like something I've read before! ;>)))!!!
DNAP….looking at the history charts…its been pumped and dumped….
First check out the charts clearstation.com
Look at Sept. that kind of movement only happens on a pump and dump.
OK, quick history…..companies out of Utah that are incorp in Navada are big red flags. Lots of scam companies work that way. Don’t know why, but it just seems to….
Second, its located in Sarasota…let me tell you, that’s a small town with nothing going on. Next, this is a company formed out of another company that went chap. 11. Plus the guys running this company have all been involved in Chap 7’s under Fl. Law…hmmm makes you wonder about how they do business…
Anyway, here is the blow by blow from the filing of things that stick out as being really not right.
They spend a lot of time talking about the great potential of DNA research, etc. which is great, but doesn’t mean crap since the company has not assets to do anything to get the idea off the ground.
Ok…the first thing that caught my eye is this…
Under “
NEED FOR ADDITIONAL FUNDING” on page 12, these things very strange, especially the pay they are looking for…for their five emplyees.
6) Employ three more scientific staff (a bioinformaticist/biostatistician, a
software engineer and a laboratory technician) for a period of two years.
At $160,000 per year for two staff, including benefits, this amounts to
$320,000.
7) Provide two years worth of salary for the two scientific and one
administrative staff already employed. This will require $242,000 per year
and $484,000 for two years.
That’s a hell of a paycheck for a starting company….usually companies just issue themselves stock….and a small salary and that’s on big companies…look at what the officers of a regular NAZ company make as an example.
We are seeking a total of $2,379,000 for an equity investment in our company.
This would fund the execution of this business plan for two years.
That’s a nice bit of change for two years…and that’s not even to get the business running…just start up
All that aside, lets look at how they put this whole deal together….
CARL L. SMITH, President and Director, is 58 years of age. Mr. Smith is an
entrepreneur in venture capital marketing, sales and business development. Mr.
Smith has served as the CEO of DNAPrint genomics, Inc. f/k/a Catalyst
Communications, Inc. from 1994 to the present and has served on the board of
directors of Diversified Resources Group, Inc. from 1994 to 1996 and from April
1999 to the present. Mr. Smith has served as a director of GRG, Inc. from
September 1998 to October 2000, and also serves on the Board of Directors of
Penn-Akron Corporation from June 2000 to the present. Mr. Smith has also been
chairman of Tampa Bay Financial, Inc. from 1994 to the present, a Florida based
consulting company and became President of American Communications Enterprises
in October 2000. Catalyst Communications, Inc. filed a Chapter 11 Bankruptcy in
1998 for which a Plan was confirmed in 1999.
(Note the other companies he is tied with….GRG, Penn-Akron, and Tampa Bay Financial)
MATTHEW A. VEAL, Chief Financial Officer, Secretary and Director is 41 years
old. Mr. Veal, a CPA, is currently CFO for the following entities (including
DNAPrint genomics, Inc.): Tampa Bay Financial, Inc. (since 1995), Diversified
Resources Group, Inc. (since 1999), Global Resources Group, Inc. (since 1998),
and American Communications Enterprises, Inc. (since 2000). Diversified
Resources Group, Inc. filed Bankruptcy, Chapter 11, in 1997, the Plan was
confirmed in 1998 and it was closed in 1999. From 1997 to 1998 he was Chief
Accounting Officer for Kosmas Group International. From 1995 to 1997 he was CFO
for Catalyst and from 1994 to 1995 he was CFO for ComCentral Corp. Mr. Veal
served on the Board of Directors of ComCentral through 1995 and Data 1, Inc. and
American Communications Enterprises, Inc. Mr. Veal is a graduate of the
University of Florida School of Accounting. Catalyst Communications, Inc. filed
a Chapter 11 Bankruptcy in 1998 for which a Plan was confirmed in 1999.
OK…here are the “Brains” of the operation –
DR. TONY FRUDAKIS, Chief Scientific Officer, Dr. Frudakis is also a
co-inventor of patents associated with the DNA sequencing reagents and the
software product described here. (which later they say they gave the rights to to another company…that to come later)
(Next player) GEORGE FRUDAKIS, Vice President of Business Operations, started a
multi-component company called GAFF group in 1998. During his life's work as a
self-employed entrepreneur, he made the initial seed investment for the DNAPrint
genomics business plan. (Brothers??)
O. HOWARD Gdog SMEYER, Director, is 76 years old. Mr. Gdog smeyer has been the
chairman of Diversified Resources Group, Inc., formerly known as Data 1, Inc.,
from 1994 to 1996 and again from 1997 to present. He also served as CEO from
1994 to 1995 and again June 1999 to present. He has also served as chairman of
DNAPrint genomics, Inc. f/k/a Catalyst Communications, Inc. from 1994 to
present. Mr. Gdog smeyer's career extends many years and includes a variety of
business and civic accomplishments. Catalyst Communications, Inc. filed a
Chapter 11 Bankruptcy in 1998 for which a Plan was confirmed in 1999.
The last two guys they list …well, not worth taking up more space here.
This is their Asset sheet - Investment in GRG, Inc. - Available for sale 222,443
Total Other Assets 222,443
------------
TOTAL ASSETS $ 239,736
(GRG is Chap 11, its not worth anything yet they carry it as a asset)
I tried to figure out the outstanding shares and its tough…will get to that later…
Ok…the Notes are very key in this filing….
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
DNAPrint genomics, Inc. had three
subsidiaries:
Homestyle Harmony, Inc. filed a petition for relief under Chapter 7 of the federal
bankruptcy laws of the United States Bankruptcy Court
Catalyst Communications, Inc. (formerly Jackpot communications,
Inc.) (I bet if I dug deeper, I could show that all these former companies also went bankrupt) filed a petition for relief under Chapter 7
Comcash, Inc. filed a Chapter 7 bankruptcy
(so they really have no other business)
(Love this one) NOTE 3 - COMMITMENTS AND CONTINGENCIES
a. Leases
Effective March 31, 1998, the Company terminated its lease for
facilities in Sarasota, Florida it had been leasing on a
month-to-month basis. Lease payments were $1,551 per month. The
Company has since relocated to a facility leased by an affiliate
company and pays rent under a consulting agreement with this
company.
(what do you bet this affiliate company is none other then Tampa Bay Finance company)
NOTE 7 - EQUITY TRANSACTIONS
a. Sale of Teleprizes Division and Dividend of Proceeds
The Company sold Teleprizes TM for 3,150,000 shares of common
stock of GRG, Inc. d/b/a Global Resources Group, Inc. a Nevada
start up public company, with certain marketing rights associated
with providing internet scratch off sweepstakes promotions to
internet websites to induce traffic. GRG, Inc. was controlled by
the major shareholders of the Company. The Company declared a
dividend in May 1998 whereby it issued one share of GRG common
stock for every share of Company stock. The remaining 222,443
restricted shares of GRG are classified as available for sale
since the company has no present intention to sell the shares. (mainly cause no one would buy them. They basicly sold the Teleprizes to themselves…watch how many times this happens.)
During 1998 Tampa Bay Financial, Inc., a related party, directly
contributed $601,587 to the company. Tampa Bay Financial, Inc. is
controlled by the Company's largest shareholder, Carl Smith, Sr.
On October 1, 1999, Tampa Bay Financial Holdings, Inc., ("TBFH")
a related party controlled by a son of Carl Smith, Sr., acquired
the largest claim in the Company's bankruptcy (totaling in excess
of $2,500,000) for $1,200,000. The most significant terms of the
claims transfer included a provision that TBFH would pay amounts
owed in installments as follows: (tough to follow…you bet) As part of the bankruptcy TBFH agreed to convert the claim to
125,000,000 shares; (that’s a lot of shares…hmmm whats the float on this “start up company”?)
NOTE 8 - SUBSEQUENT EVENTS
a. Land Acquisition
On January 31, 2000 the Company acquired a 17 acre tract of
undeveloped land in Apex, North Caroline for 30,000,000
restricted common shares. The Company subsequently sold the land
to Penn Akron Corporation, a start up Nevada Public Corporation
in the internet-based education business for 4,500,000 restricted
common shares. (ok, remember I said remember that Penn Akron company…hmmm so who did they buy the land from…who controls those shares…ten to one it was Tampa Bay Financial …plus, they turned around and sold it for other shares of another start up company….who they are also the officers in….and how come they don’t show those shares as part of the companies assets??)
c. Name Change and Increase in Authorized Shares
On July 15, 2000 the board of Directors, authorized a name change
to DNAPrint genomics, Inc from Catalyst Communications, Inc. The
Board approved and amended the Articles of Incorporation to
increase the authorized common shares to 500,000,000 shares of
common stock and 10,000,000 preferred stock. (wow…that’s a ton of shares…with no splits or nothing)
(From what I can figure…this is the current float )
Balance, September 30, 2000
(Unaudited) 384,400,986
OK, lets look at some of the latest “deals”
On September 22, 2000, the Company signed a purchase agreement with Orchid
Biosciences, Inc. to acquire $500,000 of equipment. Under this commitment which
begins when equipment included in the agreement is installed in the Company's
facilities (expected November 2000). The Company also signed a supply and
license agreement by which it will be liable to purchase $140,000 of genotypes
kits and pay a 15% royalty to Orchid for compensation from the sale or license
of any discoveries found from the genomics, ( wait, wasn’t this the business that DNAP is supposed to be developing??) not subject to the option (see
below)
Simultaneously, Orchid purchased an option for $350,000, payable in November
2000, to co-develop and co-commercialize certain existing and future
intellectual properties and products of DNAPrint genomics for a twenty-five year
period. Under the terms of the agreement, DNAPrint granted Orchid an option to
license the rights to co-develop and/or co-commercialize certain DNAPrint
genomics products and properties. The option provides Orchid exclusive rights to
negotiate partnership terms with DNAPrint for these products and properties.
(so for 350K they sold rights to things they don’t own yet and even if they develop them, it belongs to Orchid and not DNAP, so what do the shareholders get out of the deal/)
the Company has also entered into a commitment to lease facilities in an office
building being purchased by George Frudakis, a Corporate Officer, to be
finalized in November, 2000. (oh, my bad…its not Tampa Bay Finance that is making money off leaseing the space, its one of the other officers)
NOTE 8 -BUSINESS ACQUISITION OF DNAPRINT GENOMICS, INC.
On July 15, 2000 the Company exchanged 192,000,000 shares of its common stock in
a business combination accounted as a pooling of interests because the Company
and DNA are considered to be under common control. DNA's principal assets
included certain genomics equipment and a stock subscription receivable of
$1,000,000 from Tampa Bay Financial, Inc., and affiliates, a common shareholder.
This transaction included the Company's assumption of approximately $71,584 in
equipment operating lease obligations and operating leases of office space from
DNA.
(Getting late, but once again a shell game with trading stock among compainies owned by the officers of DNAP)
On October 19, 2000 the Company merged with S.D.E. Holdings, 1, Inc., an
unrelated Nevada company. S.D.E. Holdings, 1, Inc., is a full reporting company
under Rule 12 (g) of the Securities and Exchange Commission.
The purpose of the merger was to allow the Company to file a 211 application
with the National Association of Security Dealers, Inc., as a successor full
reporting company to become listed on the OTC Building Board. S.D.E. Holdings
had no substantive assets, liabilities, revenues or expenses since its inception
and all equity of S.D.E. Holdings, 1, Inc., was cancelled as part of the
transaction. As consideration the DNAPrint genomics Inc., (Utah) paid the
principals of S.D.E. Holdings 1, Inc., $150,000, which included the legal
expenses to administer the transaction. (shell company game used as a bailout for these types of revolving companies)
In October, 2000, the Company dividended its minority interest in Penn-Akron
Corporation, Inc., to its shareholders since the Company desired to focus more
closely on its genomics related projects. (hmmm…did you get your dividended)
Ok…I am getting tired now. I could do searches on all the other companies they have listed here and bet they would show up related to other Navada and Utah companies. The whole thing screams of a scam. The officers will make as much as they can selling stock and paying themselves, file chaper 11’s and then move on to the next company
That’s it unless you need more |
