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  • sfpooch sfpooch Feb 7, 2013 11:50 AM Flag

    Bigger buys 500,000 options

    Greggory Bigger, CFO and president, purchased 500,000 options on Feb 1.

    Sentiment: Strong Buy

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    • Actually looked at the filings for these two.. and NEITHER bought stock. In 2009, Kyte was telling investors the company would be profitable on the Elektra. In March of 2011, he had quietly changed direction of the company to the AOT. He thought he was doing such a great job that in March of 2009 that the board issued him stock options as part of a bonus structure with his employment. Bigger also got the same package.

      The 10k filed back in March of 2009 states the companies one patent (had to point that out) when the Elektra was supposed to be bringing the company to profitability. It also states in 2010 that the company had contracted an outside firm to build it's prototype of the AOT. So there was the interview in 2009 that Kyte gave stating they would be profitable in the next 6-8 quarters with no mention of the AOT the ENTIRE interview, just Elektra, yet a year later he is changing direction. Tired of reading their BS, so I won't go into more but investors should read and try and follow this joke.

      In Kytes recent filing it states:
      "As reported in Issuer's Form 8-K filed on March 9, 2011, Issuer granted Mr. Kyte, effective January 30, 2011 ('Vesting Commencement Date"), an option ("Option") to purchase 17,600,000 shares ("Shares") of common stock of Issuer at an exercise price of $0.25 per share. Subject to Mr. Kytes continued employment with Issuer, 20% of the Shares, i.e. 3,520,000 Shares, subject to the Option, vest on each anniversary of the Vesting Commencement Date."

      In the March 9, 2009 filing it states:
      "The Board recognized Kyte’s skills, judgment, abilities, contributions and outstanding performance as the Company’s Chief Executive Officer (“CEO”), and determined that it is in the Company’s best interest for Kyte to remain and continue to serve as the Company’s CEO and for Kyte not to terminate the Employment Agreement;"
      Even though it is obvious Kytes incompetence has wasted 10's of millions of investors money which by now should have been apparent in the RAND report, and Kyte changing direction of the company. Even with this apparent incompetence, the board agreed to a 5 year term for his employment with the 17,600,000 options to become vested at 1/5 per year on the 30th of January every year. Bigger had a similar employment contract, except his is for less options over a shorter term, vested on the 2nd of Feb every year. But hey.. it looks like there are only 3 board members then, with Kyte being one of them so help yourself.

      Now at the point the stock becomes vested (the last 2 filings), Kyte and Bigger have the "right" to purchase the stock. But on both filings it shows in part 8 they didn't pay anything so I do not believe either exercised their option to purchase.. Kyte has 9 years to buy these shares.

      "1. Issuer granted Mr. Bigger, effective February 1, 2012 ("Vesting Commencement Date"), an option ("Option") to purchase 4,000,000 shares ("Shares") of common stock of Issuer at an exercise price of $0.25 per Share. Subject to Mr. Bigger's continued employment with Issuer, 500,000 Shares vested on the Vesting Commencement Date, and 500,000 Shares, subject to the Option, vested February 1, 2013. Subject to Mr. Bigger's continued employment with Issuer, 1,000,000 Shares will vest on February 1, 2014, 1,000,000 Shares will vest on February 1, 2015, and 1,000,000 Shares will vest on February 1, 2016, all at an exercise price of $0.25 per Share."

      Bigger has 9 years as well to actually purchase these.
      17 million plus options.. guess it makes sense Kyte would hire some penny stock pumpers to run this up and keep it going wouldn't it? In January 2011 when Kyte gave himself this sweet option package, the stock was trading at $.44. What kind of an incentive is that to grow the companies value when you issue options at half the going rate? Sounds more like setting up a sweet future deal. Funny the pump in April 2011 right after Kytes first vesting period in Jan 2012. Second pump and news releases to coincide close to this years vesting period. On September 18, 2012 he exercised options from 2010... He waited for the pump they paid for before even buying the stock at $.25 then.

      Sentiment: Strong Sell

      • 1 Reply to cons_have_knee_burnz
      • Funny as well that the buys Kyte does usually coincide with the quarterly reports. I would say in an effort to boost the supposed cash on hand.
        BUT, even though the company is going bankrupt, has cut spending on their R&D, prototypes, and everything to do with actually running this legitimately, you see this gem in the September 28 8-K report:

        "As previously reported in Registrant’s Form 8-K filed on September 6, 2012, Gregg Bigger was appointed president of Registrant effective September 1, 2012. Effective September 1, 2012, Gregg Bigger’s Employment Agreement was amended to increase his salary from $15,000 per month to $20,000 per month, in light of his new additional responsibilities as president of Registrant. Previously, Mr. Bigger’s initial salary of $10,000 per month, effective February 1, 2012, was increased to $15,000 per month effective May 1, 2012."

        So while EVERY area of this company is being cut back on, these guys give themselves raises. At $.25 per share, these guys can basically buy their 500k shares every 6 months with company money, and basically pay the company back their wages, and pocket the difference which would be 3x that. If you had this deal, would you want to keep this gravy train moving along not answering any direct questions through "investor relations", vague news releases that are filled with things to make it as cloudy as possible and not now the real truth or numbers due to "NDA's", or a "need for secrecy" for whatever reason? Obvious why they have never once addressed a single thing in the infatitus article from Seeking Alpha.

        Sentiment: Strong Sell

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