"Insolvency is Approaching" Balance Sheet in Peril !!Facts are Facts and its revealed in latest released Financials that this company is on life support. Dire need for much additional capital to avoid this solvency issue with its balance sheet. The last Placement they did in July that took over 2 months to close raising a measly $2.7mm, and was done by CEO at a great discount of .09 cents, when market price was .12 cents. Another feeding to their friends and associates and themselves who also participated in the cheap issue. Great discount while retail investors were buying the stock at .12, .13, .15 and .20 cents right up to .30 cents. This was a desperate move by CEO to stay alive as a going concern for a while to ensure salaries continue to be had. They also gave management recently that massive 8.8 million share stock options that created more massive dilution and all these events and past events has caused the results we see today with their poor balance sheet with all that massive massive debt of close to $30 million, with little hope of being able to be repaid. Keep in mind that Debt Financing of $10mm is to be paid early next year and will pose a major problem for company to address. This is what we are all investing in...a company who may be insolvent very soon, if they don't resolved their problems to restore production.
We see delays after delays for last 10 months, and no closer to date of resolving these problems. Company still has not installed those velocity strings, and hasn't obtained consent from partner TPAO as stated by CEO in latest Video interview. It's a Joke!!! NOW, WE SEE RESULTS of their terrible balance sheet and does very much appear, they will definitely require more and larger financing. The problem is, who will give this company money under these conditions..would you and trust this management team after seeing all these events and failures. Look at all the past placements in the last 3 years and the people that partipated in close to $60 million dollars raised at much much higher prices than today and ask them how their investments in this company are going. Highly unlikely they can attract any future financing at this time, certainly not at current prices of .14 cents and a market cap of $18mm. Only see more down side from here, CASH on hand extremely low at roughly $200K.
Huge massive dilution, especially after that huge 5:1 stock consolidation and continued huge salaries, bonuses, stock options, RTU 's and Warrants extended to management and many others, in exchange for services (?).
That's why we are where we are today, close to being insolvent. Good luck, to all holding. Like I had said many times to those who have decided to sell and exit, do it at time where you see large volume buying with price rising just as we have seen many many times and exit in a orderly fashion to preserve as much of your money as possible. I pray for all people that is facing large losses here and hope you recover much of your investment. Good Luck to all.