Good report. Only two major blindsides.
Post# of 40989
(Total Views: 330)
Posted On: 03/18/2019 9:41:32 PM
Good report.
Only two major blindsides.
There was nothing as in nada referencing the details to the Carpathia LLC (Canouse Brothers) note for $60,000 that was converted to 141 million shares for the Q ending 1/31/19. Checking previous reports there was no mention except that it was just part of the total notes amount.
Then the subsequent events:
(i) On February 14, 2019 the Company issued 85,003,928 common shares upon the exercise of a conversion by Carpathia LLC of a $ 60,000 convertible note, plus accrued interest thereon, which at that date increased the total common shares Issued and outstanding to 4,732,271,172.
And for those of you who hoped there would be NO MORE convertible loans taken out:
(iv) Subsequent to January 31,2019 the Company recorded additional convertible notes payable totaling $ 90,000 due to J.P. Carey Enterprises, Inc. and Carpathia LLC on the same terms set out on page 16. Proceeds from these notes were used to support working capital requirements.
J.P. Carey is ALSO a Canouse brothers controlled entity.
It appears that whatever funds SB is collecting is going pay Cogosense purchase price and perhaps also product from Cogosense. But he is still borrowing funds from toxic guys and diluting the existing shareholders.
One other thing that piqued my interest was the accrued but unpaid sales commission.
Accrued but unpaid sales commissions 1,001,186
This number divided by the sales commission of 12.5% = $8,000,000 sales (there were some early sales with a 25% sales commission). Pretty close to the $7.66 million cumulative sales to date. So SB's commissions are an OVERRIDE to whatever commissions he is paying outside salespeople (which also theoretically could include himself).
For me that clears up some of the selling costs. Total commissions could be equal to 25%.
Shareholders have a lot of people to stand behind in line. Toxic guys get paid first, then Cogosense, then SB is next, then lawyers then shareholders. Cash is still very tight otherwise why go to Canouse well again after the quarter ended?
DSO is back to where it was on 7/31/18. Better but still not great , about 330 days.
Only two major blindsides.
Quote:
Convertible notes payable amounted to $ 288,633 and $ 348,633 at January 31, 2019 and October 31 2018 respectively. The decrease of $ 60,000 during the 3 months ended January 31,2019 was achieved through the conversion of a Note, plus accrued interest, in exchange for the issuance of 141,561,726 of the Company’s common shares on December 11,2018. Of the remaining balance of $288,633 at January 31,2019, $228,000 represents 12 month convertible notes payable to Machiavelli Ltd LLC ($20,000), to Carpathia LLC ( $80,000) and to J.P. Carey Enterprises, Inc. ($ 128,000) all of which carry interest at the rate of 12% annum and which are convertible at a rate of 50% of the average market price of the Company’s common stock based on the lowest 3 intraday trading prices quoted by OTCMarkets during the 10 day trading period prior to conversion
There was nothing as in nada referencing the details to the Carpathia LLC (Canouse Brothers) note for $60,000 that was converted to 141 million shares for the Q ending 1/31/19. Checking previous reports there was no mention except that it was just part of the total notes amount.
Then the subsequent events:
(i) On February 14, 2019 the Company issued 85,003,928 common shares upon the exercise of a conversion by Carpathia LLC of a $ 60,000 convertible note, plus accrued interest thereon, which at that date increased the total common shares Issued and outstanding to 4,732,271,172.
And for those of you who hoped there would be NO MORE convertible loans taken out:
(iv) Subsequent to January 31,2019 the Company recorded additional convertible notes payable totaling $ 90,000 due to J.P. Carey Enterprises, Inc. and Carpathia LLC on the same terms set out on page 16. Proceeds from these notes were used to support working capital requirements.
J.P. Carey is ALSO a Canouse brothers controlled entity.
It appears that whatever funds SB is collecting is going pay Cogosense purchase price and perhaps also product from Cogosense. But he is still borrowing funds from toxic guys and diluting the existing shareholders.
One other thing that piqued my interest was the accrued but unpaid sales commission.
Accrued but unpaid sales commissions 1,001,186
This number divided by the sales commission of 12.5% = $8,000,000 sales (there were some early sales with a 25% sales commission). Pretty close to the $7.66 million cumulative sales to date. So SB's commissions are an OVERRIDE to whatever commissions he is paying outside salespeople (which also theoretically could include himself).
Quote:
Through July 31,2017 he was also entitled to receive a profit incentive bonus by way of sales commissions equal to 25% of the value of all new executed contracts, net of any payments to outside services, derived by the Company from such new contracts. Mr. Berman voluntarily agreed to reduce his commission rate commencing August 1,2017 to 12.5%
For me that clears up some of the selling costs. Total commissions could be equal to 25%.
Shareholders have a lot of people to stand behind in line. Toxic guys get paid first, then Cogosense, then SB is next, then lawyers then shareholders. Cash is still very tight otherwise why go to Canouse well again after the quarter ended?
DSO is back to where it was on 7/31/18. Better but still not great , about 330 days.
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