Have never ever had one work out profitability. Many times it's the kiss of death for shareholder value.
Graphon needs to make money first. Assume a 1 for 10 reverse split . Now the shares are $5. If GOJO makes a penny a share the PE would be an unacceptable and unsustainable PE of 500. But the company presently doesn't make any money so you can imagine how fast that $5/share would drop.
This shoulldn't even be up for vote until Graphon can show some greater revenue and profits. This should be clearly a "NO" vote.
Some have worked out well (AIG and TWC in '09), but I agree there is risk here. It appears the reverse split would be implemented to increase institutional investors who aren't permitted to trade pennies.
The earnings report is expected 5/21. I'm interested to see the revenue posted for this past quarter. Once hopTo picks up steam, profits will follow.