For a small company, this is as complicated a filing as you'll see.
I noted the $400k loan from directors with millions in stock as payment if they can't pay the cash. Glad to see people backing the operation with their own assets but at some point this needs to stop and cash begins flowing from deals.
I see the D&Os own about 22% if I remember correctly. Again, very healthy but it also means a ton of stock awards.
I also noted if I understood things correctly that the share count in the 10K seemed lower than the last 10Q before it? I find that hard to believe and didn't see a share count for fully diluted either in the 10K. Maybe I misread this.
Very complicated in general but much of it history. The qualifiers dont' concern me and I'm not sure any of them are new including the going concern language.
I didn't see even one dollar in revenue from India. I don't think we've ever gotten the whole story on what has transpired there. They state that they are working on a limited production run for the cartridges for the clinical trial and for the compassionate use program in India. Man, I sure don't get it. Why haven't they already been prepared for this situation? I also don't get the delays in the 10-patient trial. I was really hoping that once they got the FDA approval they'd be ready to get right after it. Heck, I'm not even sure they still have the same site scheduled for the tests, as they haven't mentioned the location in the last two releases. IMO something's been really mismanaged here--but I may be completely wrong. It just doesn't seem like they've been properly planning for success here. And, it feels like we shareholders are not getting as much information about operations as we should. I was very disappointed in this 10K. There was such a big deal made for so many years about the "commercialization" in India, and now, nothing! We haven't been given any details about this whole compassionate use program--why haven't they made any sales or started any patients on this program? Very frustrating here. Also, how much, or how little, will they really be making off the Battelle contract--I think it will not be very much. And, there is no guarantee that the DARPA contract will be extended over the next three to five years. The company can only keep borrowing for so long. I hope they make it, but as hopeful and optimistic as I have been, I am now about the least optimistic regarding their outlook for success as I have been. I hope they shock the heck out of me and showcase a new government contract, or actually get even one paying customer in India, or actually start the clinical trials, or submit an IDE for the exosome removal testing. So much promise and so little in the way of tangible revenue-producing results.
Agreed Lee, very disappointing though it is as I expected. There have been a lot of signs that they are in cash conservation mode (everything else on hold, no conferences since January, can't even pay someone to update their website), I was also hoping for some product revenue though the period covered on this 10K was only for one month of time after the Medanta board approved use. However the statement about a limited production run to cover the safety study and compassionate use seems to indicate that significant progress has not been made since 3/31.
The cash balance and seeing that the company had to borrow from the directors is downright scary. They need revenue fast and there is no sign of it in the near future unless they are working on partnership deal with one of the players on the US trials that will pay Aethlon for their effort. Otherwise I don't know how they will pay for this production run???
I did sell a lot of shares last week as I don't like to hold thru earnings. At this point I am in no hurry to buy back in. I might just wait for some info on how they are going to finance continued operations.