2. Their earnings were $100,000 in USA last quarter and $500,000 this quarter. That is pretty good. If they start achieving critical mass, this could go to 5 million a quarter pretty easily.
This statement appears to be COMPLETELY INCORRECT.
Here is the company's statement from their previous quarter's Earnings Announcement.
We had gross shipments of $603,000 for the quarter ended March 31, 2011. The application of the above revenue recognition policy resulted in the recognition of net revenue of $575,000 for the quarter ended March 31, 2011. Our gross shipments are reduced for chargebacks, certain fees paid to distributors and product sales allowances including rebates to qualifying federal and state government programs. At March 31, 2011, net deferred product revenues totaled $563,000.
Show me now these figures would lead you to think that we will see sales of, "5 million a quarter pretty easily," in the near future?
A buyout at this point would be the only redemption, IMHO.
If not, then more smoke and mirrors and painful lessons ahead.