Although that is completely true in the long term, the short term pps appreciation will help open windows in the finance world should extra capital be needed for operations expansion. if the pps were 10x of where they are now, the market cap will reflect this and make borrowing money a little easier. This is especially true if they use stocks as collateral (not dilution). If we could get the pps up to 25c before they need to borrow money, they would only need to increase the OS by 4M shares for each $1M needed. These shares could be retired once the debt is retired and thus not impact the float. But, if they had to do that now, they would have to increase the OS by 67M.

So, as I see it, they need to focus on pps appreciation through recognition of what they are already doing. That should get us to at least the 15c to 25c range. Then, do what ever financing tricks from that point to expand sales/marketing to get us to the $2M/month revenue rate. Assuming a 25% gross margin and a PE ratio of 10:1, we would be above $1 pps.

To support a manufacturing run of this magnatude, you would need a minimum of $6M in cash. So, getting back to our 25c target, that would be 24M shares used as collateral (to be retired at the end of the loan period.) Two years into the loan (assuming interest only payments made during said two years), we could pay off the loan using $3M from profit and 3M in shares.

In the end, we would have a share price of at least $1 and only a 3M OS hit.

Yes, we are assuming that they sales and marketing folks are running on all cylinders and growing the sales beyond the $2M mark. The cash would be for the operations side of the business.

JMHO

DSUS -