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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (9966)	5/19/2006 12:26:10 PM
From: DaiTN	Read Replies (1) \| Respond to of 19256

WWAT (extracted from 10Q Report). In the quarters ended March 31, 2006 and 2005, the Company financed its operations principally through the issuance of common stock as the result of private sales and the exercise of warrants and stock options. In the quarter ended March 31, 2006, the Company raised $1,735,000 through the exercise of 8,529,416 warrants at an average price of $0.19 per share and 303,205 options at an average price per share of $0.28 . The Company offered short-term inducements to warrant holders to exercise warrants early which resulted in warrant inducement fees of $992,000 being recorded in the quarter ended March 31, 2006. The Company offered its Convertible Debt Holders having warrants with exercise prices of $0.30 per share the opportunity to exercise their warrants at $0.20 per share provided the exercise was completed by the end of first quarter. The Company recognized an expense of $956,000 determined using the Black- Scholes option pricing model. In addition, to induce a warrant holder to exercise warrants early, the Company issued a new warrant equal to the exercised warrant proceeds received divided by the Company's stock closing price on the date the Company received the warrant proceeds. The Company recognized an expense of $36,000 determined using the Black- Scholes option pricing model. In the quarter ended March 31, 2005, the Company issued and sold 740,741 shares of common stock at a price of $0.27 per share resulting in proceeds of $200,000 under a Stock Purchase Agreement with SBI Brightline VIII LLC. In addition, 857,750 warrants were exercised with an average price of $0.20 per share resulting in proceeds of $178,094 and 199,997 options were exercised with an average price of $0.21 per share resulting in proceeds of $42,916. ....... At March 31, 2006, the Company had a net working capital deficiency $1,136,676 and a Stockholders' deficiency of $1,613,322 and a net loss of $3,575,598 for the quarter ended March 31, 2006. ***************************************************** The death spiral financing is effecting the share price because too many cheap shares were issued in the 1st quarter of 2006 to raise cash. More cheap shares will be issued as WWAT does not have capital to take a lost of 3.5M dollars per quarter. It looks like .25-.27 is the new entry price for this dog.