Reverse splits can certainly damage a company, and yes, shareholders have to pay for the loss. That is just the way it works...but for a company that is a marketer, the risks and commonality of occasional reverse splits are to be expected when the product line or venture fails.
Generally speaking, most of these high risk venture startup holding corporations remain private until they achieve a bit more revenue then this one has, but not always.
It's a very risky play. Not for the faint of heart, so to speak.
Your play is on Keith....Not so much what the reports say. You are investing in him and his business acumen, or lack of it.
If the money starts to roll in, no matter what the product, you get to share in it, and if he sell the company, which would be the most likely outcome once he gets it moving, and gets it listed on a main exchange, you get to share in that as well.
or.....You can lose it all.
That's the way it goes..
It's pretty much a binary outcome......Zero....or One.....There is little in between...
Since they totally backed out the failed acquisitions...(plural) Costs associated with those failed deals will be turning up as general expenses for some time to come......since they are still involved in litigation..
That's my best guess....because without a capital account for "Prime Time" (for example, any related costs, due to store closures, remaining debts and such associated with it, has to be charged to general expense.
I would expect all that to be cleaned up by the end of 2015.
But that is a relatively minor issue compared to the wiped out stock.
The ridiculous SP forces them to issue large quantities of shares in trade for even a small bill from a vendor or lawyer and it allows vulture capital outfits to demand outrageous terms for short term lending in the form of convertible notes..
So like I said earlier, to continue to bash the heck out of this little company results in a self fulfilling prophesy of eventual liquidation for debt..It has to stop at some point...
You do know what that data is telling you......right?
It's telling you that they try, they fail, they try, they fail, and then they try again.
In a business..(marketing) of this nature, you generally have hundreds of failures between one or two successes.
I'm not saying that this time is the charm. The odds are against that but I am saying that reverse splits are not always bad, and that maybe one of these attempts will bear fruit....or not. But one thing is crystal clear....
They are trying again...
That's not what I said...
......and maybe you should be sick....
Keith made some serious, perhaps fatal mistakes regarding the Prime Time acquisition, but since then, my analysis of what they have done, and what they could have done, is pretty good.
He has turned the company back to basics,
He got his revisions out as well as the current Q, and from what I have read, he and his CPA did not sugar coat it at all.
Their current stock marketing reps are not currently pumping, as some have claimed, and in fact, I noted that the Zen deal was vastly understated. They only said that they were looking forward to marketing the product. There were no projections, no spin.....no adjectives at all.
So yeah.......I think they are doing something right for a change...
I doubt it....
Not to be confused with a negative "Nellie", but their accounting and legal expenses for the past 60 days will eat that up and then some...
The real value in this company is not the "caregiver"...
That product was only intended to open the door for a longer term marketing effort combined with a acquisition strategy.
This takes large amounts of investor capital and they blew it on the last attempt which resulted in the reverse split. So essentially they have to start over, and without investor confidence this do-over is very difficult to do but it can be done by revitalizing the lost investor confidence.
This can only be done with a capital injection.
Who or where this comes from is anyone's guess, and it's possible that it may not be possible or that all efforts up to now have not born fruit. But there is still intrinsic value in the company and it's up to date SEC registration.
Time will tell the tale....if you have the cojones to wait...
I'm not going to let you get by me with this "legal proceeding" quote you keep posting.
it's a error of omission on your part and I'm beginning to think it's intentional...
The full and correct quotation from the report reads as follows:
"We are not currently a party in any legal proceeding or governmental proceeding nor are we currently aware of any pending legal proceeding or governmental proceeding proposed to be initiated against us except as described below."
"EXCEPT AS DECRIBED BELOW"!!!!!!! (In case you actually mistakenly missed it)
You can analyze the facts and present your opinions based on them, right /wrong or indifferent,, but I am not going to let you make up your own facts....
That garbage will not fly very far...
I don't have any interest in blkflag.....which is a insecticide....BTW....so I suppose that says something..
Apparently you are placing far too much importance on the potential revenue from the "caregiver" product.
At best it will help to keep their head from sinking too far below the water line, but it was never intented to pay the bills in their entirety which is why they were seeking to acquire various ongoing businesses in distress so that they could take advantage of the cash flow and right the ship financially...
Essentially they are Bankrupt.
But they apparently have managed to protect the listing, reduce the outstanding shares and this gives them another bite at the apple.
As I said, the value in this company is not what they are doing now, but what they could do, should they regain investor confidence.
BTW...Those comments had more to do with the totally mishandled aquisition where the selller apparently led them down the baloney trail and they feared Medicare suits as a result..
They still have law suits that they are either prosecuting or defending and the legal bills related to those actions.. They also had accounting charges as their CFO is not a auditor. He cannot attest to a 10K which subsequently turn into multiple revisions 10KA's. You have to contract that out to a certified SEC approved auditor..It cannot be done cheaply.....they have to pay for it..
In addition, as a result of the reverse split, and their mishandling of the original filings with the SEC, they needed legal advice to deal with the SEC.....
They are still embroiled in a suit against the individuals who screwed them on that acquisition in 2014, and they are still defending against patent litigation as far as I know..no settlement of these cases have been announced..
The only suits that have been retired were related to a loan scheme that they were delinquent on..
A number of posters have made hay over their general administrative expenses over the past year or so and these expenses are mostly related to legal and accounting issues past and present. With the restatements, and knowing what I know about the costs incurred to do that, I would estimate somewhere just south of 750k at best, and perhaps higher for the expense of SEC expert legal advice and accounting..There were also expenses associated with the reverse spit, which came in the current quarter. All this amounts to just about what your cash estimate is, plus there are expenses related to their road shows...
Your cash estimate is ridiculous, unless it is borrowed money..
Apparently you are placing far too much importance" according to you, I'll bet that every thing I say is of mis-placed importance. "
I said that because it's true...
That thermometer....good, poor, lousy price point,,,,,whatever, was never meant to be the company's future.
It's just a simple marketing effort to make a profit, but that profit is not and will never be enough to provide the cash flow needed to support a listed company. Especially not this one who's desire is really to be a medical related holding company.
That is what it was supposed to be, but as I said, they have blown the attempt.
Why that happened is not as important either, because whenever they receive a cash infusion, the current management will likely be shown the door. Managers who make mistakes of that nature, rarely if ever get a second chance..
My interest in this company began when Keith called be back in 2014 to sell me some unregistered securities. I declined after 10 minutes of research, but I kept the ticker on my board...just for the heck of it..
Now, after all the bad stuff is finally out, I find the company to be a risk worth putting a few bucks into, just to see what happens..So I did....
I would like Keith to find that benefactor for a cash infusion, take his money and give control to someone who knows what they are doing. It's his only recourse and he knows it
So I bought a few shares to keep me in the game and follow the course of this company as it re-invents it's self without Keith at the helm..
It's going to happen that way, or.........it's going to become a dead duck....
I'm not anyone other than what I have represented myself to be...
....and you sir, have been caught flat footed, misquoting their 10Ka
There is synergy with SIMH because of the marketing channels that SIMH has developed by way of Thermomedics.
The customers for Zencharts are essentially related, and I don't know of a single city in any state with a population of more than 15K that does not have a facility doing Medicaid subsidized psychological and or drug rehab work.
There is no SEC requirement for a listed corp to make money. Especially a Pinky....
SIMH is and has been and will continue to be a startup holding co.,
Unfortunately for all past investors, it has failed multiple times in multiple ways but it keeps trying, as there is really no other purpose for it.
Knowing this, you invest in a company like this expecting to lose your entire investment or at best, you wait a long time for a payoff that by definition is way down the road.
It's actually quite pointless to continue to complain about it.
I have a few dozen tickers that use deceptive pumping tactics on my watchlist right now..
At best they are a decent short play at times, but other than some creative use of the Ebola scare a while back, I have not seen a lot of deception. As far as the Ebola thing goes, any idiot with half a brain would understand that this company does not sell into the retail market. They have only marketed to the professional buyers for quite some time and there are financial and regulatory reasons for that.
As far as "prime time" is concerned, that acquisition was a total failure of due diligence prior to writing the check.
The failure of Prime Time, also damaged all the other deals in the pipeline and it was a total boondoggle.
I currently have several empty shell corps that I am very familiar with trading at 10X the price of SIMH and these have not filed in years, have officers in prison and no remaining business. I believe this stock has been punished relentlessly for far too long and this punishment is now becoming a self sustaining prophesy because it has damaged the companies ability to grow by denying it's access to capital.
I have no issues with what Kieth is doing at the present time..
One needs to realize that he is not in total control here...He has a inside relationship with a VC firm who provides him with operating cash as well as leads regarding acquisition targets.
As long as this VC firm continues to support this company, it has a small chance of success one day.
But to value the company on current revenue and debt, would be a failure to recognize that this company will remain in debt and have little revenue until it succeeds with one or more of it's attempted ventures..
As such, it's a very high risk play and not for mom and pop investors..to play with because the price is cheap.
Other than the distribution of the Macquarie settlement with the SEC, I don't see any other money to recoup.
As of earlier this year, Zhao had no money he was willing to part with, and in fact said he was broke, and Zhu has not been seen since he resigned as CEO back in 2011.
District Court Enters $250 Million Default Judgment Against Former Company Executives in Puda Coal Fraud
The Commission announced today that the U.S. District Court for the Southern District of New York entered final judgments by default against defendants Ming Zhao (Zhao), the Chairman of Puda Coal, Inc. (Puda) and Liping Zhu (Zhu), Puda's former CEO. Both defendants are Chinese nationals. In addition to ordering permanent injunctions against future antifraud and related violations, the Court ordered both defendants to disgorge, jointly and severally, $116,000,000, along with prejudgment interest of $17,582,250.84. Zhao was also ordered to disgorge an additional $33,471.50 representing his additional ill-gotten gains, along with prejudgment interest thereon in the amount of $5,224.71, and to pay a penalty of $116,000,000. Zhu was also ordered to disgorge an additional $108,248 representing his additional ill-gotten gains, along with prejudgment interest thereon in the amount of $16,264.73, and to pay a penalty of $1,200,000. All told, the Court ordered over $250 million in disgorgement and civil penalties for the defendants' securities law violations. In addition, the Court permanently prohibited both defendants from serving as an officer or director of any public issuer.
Another theory is that I don't see any sort of poison pill to stop the company from changing hands in a hostile takeover....so there are a number possible scenarios.