Read the filing. 1.5M shares in warrants at $5.00 and 2,348 in preferred. The 75 million is shares authorized which means nothing. Almost every company authorizes more than shares than shares outstanding. Look at the balance of IBM in the 10Q, it says 4B+ authorized.
WSJ: "The latest example: Coinbase..The company is getting $25 million in funding from Andreessen Horowitz, marking what appears to be the biggest funding round for a bitcoin-related startup on record. The round values Coinbase at about $140 million, according to two people close to the deal."
In the WPCS filing, the company says they intend to launch their own Bitcoin exchange "in the near future". WPCS will be the only publicly trade-able stock that owns a Bitcoin exchange.
Pursuant to the Subkhankulov Employment Agreement, Mr. Subkhankulov will serve as the Chief Operating Officer of BTX for a period of one (1) year, subject to renewal, in consideration for (i) a one-time signing bonus of $66,667 and (ii) an annual base salary of $130,000. Ilya Subkhankulov, 24, graduated from The Johns Hopkins University with a Bachelor of Science degree in 2011, where he double majored in Applied Mathematics and Economics. He worked as an analyst at Thomson Reuters from June 2011 through February 2012, and as an analyst at Goldman Sachs from February 2012 through August 2013.
Pursuant to the Thakur Employment Agreement, Mr. Thakur will serve as the Chief Technology Officer of BTX for a period of one (1) year, subject to renewal, in consideration for (i) a one-time signing bonus of $133,333 and (ii) an annual base salary of $170,000. Divya Thakur, 28, graduated from the University of Toronto in 2007 with a Bachelor of Science degree in electrical engineering. He worked as a software development engineer at Microsoft Corporation from 2007 to 2008, as a consultant at Goldman Sachs from 2011 through August 2013. Mr. Thakur was chosen to be a member of the Company’s Board of Directors based on his knowledge of the Bitcoin trading and software industry, the business focus of BTX, the Company’s new wholly owned subsidiary.
As part of the Purchase Agreement, (i) the Company agreed to waive any rights to compel the redemption of the Notes, (ii) the Note Holders waived provisions in the prior transaction documents prohibiting the payment of dividends, (iii) the Note Holders agreed that a default under the BTX Note would not constitute a default under the Notes, (iv) the Note Holders waived the default by the Company of its failure to disclose all material, non-public information in possession of the Note Holders by December 15, 2013 and (v) the Note Holders agreed to restrict their ability (individually and not in the aggregate) to convert their Notes or Preferred Stock and sell such shares of Common Stock issuable upon conversion of the Notes or Preferred Stock to a percentage of the aggregate trading volume of the Common Stock in excess of $5 million per day.
Neither the shares of Series E Preferred Stock nor the Warrants shall be convertible or exercisable, respectively, until Stockholder Approval is obtained.
BTX’s model is to combine the best features of its competitors and provide features found nowhere else. So, while other platforms may offer multi-exchange integration, BTX intends to route to more exchanges, and allow synthetic stop-loss orders on top of them. BTX expects to initially launch in a jurisdiction where the regulations surrounding Bitcoin are clear, with a long-term strategy of moving into the United States, following a clearer understanding and development of the regulatory and compliance environment in the U.S. The Company is committed to ensuring compliance in all jurisdictions that in may operate in Bitcoin exchange.
The Company agreed to seek to obtain Stockholder Approval by April 30, 2014. If, despite the Company’s reasonable best efforts Stockholder Approval is not obtained on or prior to April 30, 2014, the Company agreed to cause an additional annual stockholder meeting to be held annually at which Stockholder Approval will be sought (or if no Annual Meeting of stockholders of the Company is held in any given year, to seek such approval at a special meeting of stockholders of the Company in such given year) until such Stockholder Approval is obtained.
-WPCS to launch a Bitcoin exchange "in the near future"
-BTX co-founders have legitimate backgrounds including stints at Goldman Sachs, Thomson Reuters, and Microsoft
-BTX share-holders can't sell any of their shares until stock holder approval AND trading volume of $5 million per day (AKA not any time soon)
-Bottom-line: only real legitimate Bitcoin play in public markets. BTX founders incented to make both Bitcoin trading software and Bitcoin exchange work as a fully owned subsidiary of WPCS
Text quotes from filing below:
BTX was founded to focus on two product categories within the Bitcoin market; (i) trading systems; and (ii) exchanges.
BTX’s current business strategy is to continue to implement advanced trading algorithms for bitcoin traders. BTX expects to generate revenue from the trading systems by offering users advanced Bitcoin trading algorithms and strategies that are not currently available. The trading system is a cloud-hosted service that is in an early beta stage. It incorporates some high-end features traders may be familiar with from other asset classes, including advanced charting, trading blotters, and consolidated level 2 order books. BTX believes it is currently the only product that offers trading integration against the five current largest Bitcoin exchanges, allowing users to see liquidity across all platforms, route orders to the best platforms, and identify possible arbitrage opportunities across platforms. Additionally, it allows users to place synthetic stop loss orders against those exchanges, to hedge against Bitcoin price volatility which we believe is a feature not available on any other current software.
BTX’s future strategy is to open a Bitcoin exchange to allow low-latency execution of trades in Bitcoin, where it expects to generate revenue on the inflows and outflows of Bitcoin trading. BTX’s goal is to launch an exchange in the near future. (continued)
Google searches for "kindle book". Source: Google Trends
2012 Q1 +66% y/y, Q2 +52% y/y, Q3 +33% y/y, Q4 -14% y/y
2013 Q1 (quarter to date) -30% y/y
This isn't too surprising. Read the employee letters on Glassdoor and the articles on Americans working at Amazon's distribution centers last year (super high heat levels, lack of air conditioning). Bezos is on record BRAGGING that he plays his employees below market salaries because he hires people that believe in the Amazon mission like a cult. Meanwhile he sold around $200 million worth of AMZN stock in recent months. Hypocrite!
Staples has been VERY promotional for months. I get huge % off coupons multiple times a week.
When this passes, it will be very negative for Amazon sales.
Both state sales tax collection and price-match drivers ARE GETTING WORSE going forward. More states will force AMZN to collect state taxes, there is even a national Congressional bill getting traction on this. Plus the price-match is not going way. Both Target and Best Buy have confirmed they will do AMZN price-matching indefinitely. So look for more weak AMZN sales quarters ahead.
Amazon missed sales estimates huge in last quarter. The reason were a big ramp state sales tax collection (first time in California, Pennsylvania, and Texas) and more price-match competition from Target and Best Buy. Even Amazon admitted on the conference earnings call weakness on consumer electronics (obviously directly due to Best Buy starting to price match) and weakness in higher priced items (obviously California state sales tax driven, more expensive items sales are more tax sensitive).
The only reason Amazon hasn't crashed yet is the Capital Research family of mutual funds bought 4.2 millions shares of Amazon last quarter and I bet is propping it up this quarter. However when Amazon reports slowing growth again next quarter, the Amazon bulls like Capital Research (Amazon's #1 stock holder) are going to be forced to puke the stock. Capital Research sold 4.9 millions shares of Apple last quarter on the reports of slowing iPhone y/y sales growth and look what happen to Apple stock on that.