Financing by CEO and other insiders. Looks like a small debt financing of $85 000 just announced. 6 month term.
Also noticed that our President and CEO has put his own cash into this short-term loan. This is a positive move for a number of reasons:
1) Number of shares has not been diluted.
2) Management and insiders believe in the company enough to put their own money into it
3) The term is very short - 6 months. They know that with increased revenues they will get their money back short term...without diluting share value for all existing shareholders.
Like any emerging company, cash is needed. The fact that directors of the company are putting in their own funds is a sign that they believe the shares are undervalued.
I could see a continuation of this debt financing in the future. Loans for a short period of time and then using royalties and revenues to pay them back. Kudos to management for recognizing this creative way to gain access to funds...and finding a way to protect shareholder value and allowing the company to grow at the same time!
Bandit22