"We raised capital in 2012 and will need to raise substantial additional capital in 2013, and possibly beyond, to fund our sales and marketing efforts, continuing research and development, and certain other expenses, until our revenue base grows sufficiently."
* Translation: We will need to dilute existing shareholders massively.. I know some of you have been holding since I said ZERO would be profitable in 2009, but I have to stick it to you guys again. And P.S., it will be for a fraction of what you guys pay.. around $.25 to my buddies. But I will keep the sham going another year so they can cash out so you "investors" have nothing to fear until then.*
"There were no revenues and cost of sales for the fiscal year ended December 31, 2012 and 2011."
* not only NO revenues, but NO cost of sales.. meaning 'ol Cecil isn't spending a dime trying to sell this stuff.*
"The increase in cash expenses is attributable to increases in, salaries and benefits of $488,732"
* Nice to know they see fit to increase peoples remuneration while the company tanks.*
"Research and development expenses were $693,184 for the fiscal year ended December 31, 2012"
* Nice.. nearly spent more on raises than actual R&D. Yup, NO pipeline company in the world could compete with these guys making their own as it's obviously just too expensive to do so!!*
"Other expenses were $4,941,233 for the fiscal year ended December 31, 2012, compared to $2,838,783 for the fiscal year ended December 31, 2011, an increase of $2,102,450. This increase is attributable to increases in the fair value of derivative liabilities of $6,038,913"
* Definition: "DERIVATIVE LIABILITIES are financial instruments under contracts that have one or more underlying and one or more notional amounts".. Yup, these guys with ZERO sales sure like their gravy and seem to think they are worth a lot of coin! Imagine if they spent that much on the actual product! If anyone wonders where 80 mil has gone...*
"we have substantial contractual commitments, including without limitation salaries to our executive officers pursuant to employment agreements, certain severance payments to a former officer and consulting fees, during the remainder of 2013 and beyond."
*"SUBSTANTIAL", yet they don't list those. Who are they still paying? And how much? "consulting fees" to whom and for what?*
"(2) Consists of an aggregate of $540,700 in total compensation, including base salary and certain contractually-provided benefits, to two executive officers, pursuant to an employment agreement that expires on November 30, 2013 and January 30, 2016 and $400,000 in licensing maintenance fees to Temple University.
(3) Consists of an aggregate of $310,800 in total compensation, including base salary and certain contractually-provided benefits, to an executive officers, pursuant to an employment agreement that expires on January 30, 2016 and $240,625 in licensing maintenance fees to Temple University."
* SO until November 2013, 2 people are being paid, I will assume Cecil and buddy. But they next year to 2016 only one person? Who on the team is worth $310k??? for ZERO sales? Why would the Temple fee go down? Don't they think it has value?*
"No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company."
* pretty much says it all. People flocking to dump more money into this after these bozo's blow 80 mil and don't even have a marketable product.. changing direction 3 times. I'm amazed they got this far.*
"We had a net loss of $13,092,387 or $0.10 loss per share for the fiscal year ended December 31, 2012 compared to a net loss of $10,856,547, or $0.10 loss per share for the fiscal year ended December 31, 2011."
* Meh.. a couple mil here, a couple mil there.. who cares right? Obviously didn't go towards anything marketable though it looks like*
"We have incurred negative cash flow from operations in the developmental stage since our inception in 1998. As of December 31, 2012, we had cash of $1,601,791 and an accumulated deficit of $82,381,854. Our negative operating cash flow in 2012 was funded primarily through the sale convertible notes for cash and proceeds from the exercise of stock purchase warrants and options."
* so 80 mil.... wow.. How much on the Zefs and Elektra? Maybe an "investor" should ask for once how Cecil has spent their money.*
"These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan. The consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern."
* coming sooner than later is my guess*
"During 2012, we raised an aggregate of $1,835,377 in net proceeds from the issuance of our Convertible Notes."
*@ $.30 that makes about 6 million share dilution. At today's volume, that would take 2 months to clear. That is just ONE of their dilutions. Shows how valuable this company is and how much faith investors have if they cannot even get half the going price. And the options at less than a third the going rate. In one year 15 million shares are open to be dumped. At today's volume, that would take 150 days to clear. Think this could support that?*
No.. Temple supposedly developed it, and they get 400 grand a year. So if that went on for even a decade, that's 4 mil out of that. The first devices like the ZEFs were swept under the carpet.. The Elektra that Cecil said would make the company profitable in 2009 has never sold a single unit. So you would thihnk shareholders would be asking about how their money is being spent.
Looks like around 6.5 million in stock and salaries alone, plus cash to Temple every year.. so over 10 years you can see. Sure are not spending much on actual R&D. Hard to tell as they don't specify anything. Cecil can just say it will be profitable next year, every year and the suckers will stay in and put more cash in.