Psythe, being a person who really enjoys numbers I decided to do some research and I think you will be happy after reading this post. Of course if my math is correct.
There is one assumption we have to make before we begin, and that is that Lonnie holds all of the Class C shares currently issued, which is 690,344 as of 9/30/13. I found it intriguing that in the 6/30/13 quarterly report the verbiage under Note 5 - Stockholder's Equity, Preferred Shares, Class C, they state that "THE HOLDER of THE Class C Preferred Shares converted 3,521 shares into 3,521,000,000 million common shares." Forward to the 9/30/13 quarterly report and the verbiage changes to "the HOLDERS of the Class C Preferred Shares converted 1,867 shares into 1,867,000,000 million common shares." (Note 7 – Stockholder’s Equity, Preferred Shares, Class C) Now for all of our sakes I hope these statements are incorrect and should read either 3,521 Preferred C shares converted into 3,521 million common shares and 1,867 Preferred C shares converted into 1,867 million common shares, respectively. The other way this could be listed is that 3,521 Preferred C shares converted into 3,521,000,000 common shares and 1,867 Preferred C shares converted into 1,867,000,000 common shares, respectively. Otherwise, taking the statements at literal value 3,521,000,000 million common shares and 1,867,000,000 million common shares would equal 3,521,000,000,000,000 (3.521 quadrillion) and 1,867,000,000,000,000 (1.867 quadrillion), respectively. Since the A/S are not that high I believe we are safe to assume a ratio of 1 Preferred C share = 1 million (1,000,000) common shares, with pretty much all outstanding C shares being held by Lonnie.
Taking into account the previous assumptions it would be fairly accurate to assume the 690,344 outstanding Preferred C shares were held by Lonnie. We know “the majority” of these shares were held by Lonnie because of the company’s statements about the retirement of the shares. So, the best case scenario is that Lonnie holds all Preferred C shares. For this illustration I will make that assumption. So, if 1 Preferred C share = 1 million (1,000,000) common shares as rationalized above, my math produces a very different result than what you came up with. Please check, and let me know if you find any errors.
99.5% of Lonnie’s Preferred C shares were retired. That would equate to 690,344 – (690,344 * 99.5% or .995) = 3,451.72 Preferred C shares, or 3,451,720,000 common share equivalents, still currently held by Lonnie, or 3.45172 billion common share equivalents. At a price of .0001 that would mean those common shares are worth $345,172.
Looking into Lonnie’s cash investments provided to HIMR, this figure is more in line with him being returned his original cash investments as well as some profit/interest on those original cash investments. I believe Lonnie is fully behind this company and wants nothing more than for it to succeed. Why else would he “give up” 686,892.28 Preferred C shares, worth $68,689,228 as common stock at .0001? The answer is because some people value accomplishing that which “can’t be done” instead of money. Don’t get me wrong, Lonnie is going to be handsomely rewarded for the part he is playing in making Hollund the premier underwater timber recovery company, probably through guaranteed revenue sharing and future considerations. I know one thing, if I had the ability to sit on a shoreline and watch my invention bring back to life something that had been lost for hundreds of years, the satisfaction I felt in those moments would overshadow the balance in bank account. For me the greatest motivator is someone telling me I can’t do something. If you look back through history you will find a certain breed of person that accepted those types of challenges and made it happen. It’s about legacy. Sure money will help people in your family and those around you if you are generous, but an invention, like Tiger-Lynk, will help all of humanity. I’d rather be remembered for helping the world instead of lining pockets. I have to believe with all of the things happening this past week Hollund, and Mr. Hayward have the same mindset. I for one am honored to be able to be part of their “challenges”, and believe they won’t give up until they have accomplished their goals, no matter how many people tell them they can’t do it.
As always, my post is just that…………MY post.
