$DLYT: look for BIG BOUNCE-- DD PACK HERE>>>> 19 p
Post# of 103013
CREDIT: Mr.Clean
ATTENTION: MR CLEAN’S ULTIMATE DD PACKAGE
$$DLYT$$
Benjamin Franklin once said, “To succeed, jump as quickly at opportunities, as you do at conclusions.” Recently, we were blessed with an opportunity that would make drawing those conclusions a lot easier.
If you have been in the public squalor, they call the “OTC” for any amount of time, you know that it can be a nightmare and a wet dream in the same sleep cycle. Ups, downs, grins, frowns, highs, lows, ebbs flows, and a symbiotic relationship with disorientation only begins to summarize it. The chances of finding something before the rest of the market is about as rare as AOC creating jobs. It just doesn’t happen. Everyone reading this has found this stock in one way or another, and if you own shares, I want you to take a few minutes and thank your God. Whomever that may be. Jesus, Buddha, Zeus, John Stamos, I don’t care who it is just thank someone. Here’s why;
We will start with the OS. We all love low floaters and DLYT has a perfect shares structure. Not bloated and not too thin. This offers liquidity at higher levels, but also doesn’t require massive dollar volume to move it to those levels.
REVENUE GROWTH
Key financial performance from operations for the fourth quarter and 2018 year-end include:
Net revenue for the quarter ended December 31, 2018 was $465,415, versus $133,848 for the same period in 2017 (approximately 250% more).
Net revenue for the year ended December 31, 2018 was $1,381,251 compared to $382,934 in 2017 (factor of 3.6 more).
Gross Margin for the quarter ended December 31, 2018 was $151,184 versus $29,077 for the same period in 2017 (approximately 420% more).
Gross Margin for the year ended December 31, 2018 was $459,857 compared to $70,387 in 2017 (factor of 6.5 more).
Operating expenses for the quarter ended December 31, 2018 was $425,923, down from $1,054,941 during the same period in 2017 (a reduction of approximately 60%).
Expenses for the year ended December 31, 2018 were $2,115,448, compared to $2,525,499 for 2017 (a reduction of approximately 16%).
Loss from operations for the quarter ended December 31, 2018 was $274,779, versus $1,025,864 for the same period in 2017 (a reduction of approximately 73%).
Loss from operations for the year ended December 31, 2018 was $1,655,631, compared to $2,455,112 for 2017 (a reduction of approximately 32%).
IMPORTANT- Not only did DLYT increase its revenues by 360% YOY but they also REDUCED their cost of sales and DECREASED their loss from operations significantly.
Dais has been around for 20+ years so we are not investing in some no product start-up here. This company holds 19 patents already!
https://patents.justia.com/search?q=dais+analytics
Not only do they hold 19 patents, but these patents are highly valuable and desirable. Proof of this can be found in the most recent lawsuit between DLYT and SOEX. SOEX is one of DLYT’s partners in China. They also hold a 16% stake in DLYT. Apparently, SOEX had a mole working for Dais for 10 years. When he headed back to China, he tried to steal the patented tech. Dais caught wind of this and sued SOEX. After a year of arbitration something strange happened only a few days ago. On august 9th 2019, Dais DISMISSED the case with prejudice. Why? After all, Dais was full steam ahead on getting what they were owed, shown here from the most recent 10Q;
Pursuant to the Distribution Agreement, Soex is in material breach of the following:
(1)
Section 1(a) of the Distribution Agreement for Soex's failure to make a $225,000 payment to the Company for the appointment of Soex as the exclusive distributor of the Products in the Field and Territory (the "Distribution Payment Default" in accordance with the terms set forth in the Distribution Agreement. Such payment was due on October 20, 2014 (the "Payment Date" .
(2)
Section 8(b) of the Distribution Agreement for Soex's failure to make a $225,000 payment to the Company for the grant of the license and right to manufacture, sell, lease and distribute Products (excluding manufacture of MTM), and to use the Intellectual Property in connection therewith (the "License Payment Default" and, together with the Distribution Payment Default, the "Payment Default" in accordance with the terms set forth in the Distribution Agreement. Such payment was due on the Payment Date.
(3)
Section 15(b) of the Distribution Agreement for Soex's failure to issue to the Company 25% of the equity (the "Equity Default" of SOEX (Beijing) Environmental Protection Technology Company Limited (the "China Subsidiary" .
As a result of the above, we terminated the Soex Distribution Agreement. As provided in Section 14(e) of the Soex Distribution Agreement, the Company has the right to enforce any obligation due to us by Soex. As a result, Soex still must (a) pay the remaining $450,000 due under the Distribution Agreement and the amount of Royalties due, plus interest at 1.5% per month (18% per year) with interest accruing from the date that payment was due and (b) issue to us 25% of the equity of SOEX (Beijing) Environmental Protection Technology Company Limited. As provided in Section 14(b), neither us nor Soex shall be liable for compensation, reimbursement or damages due to loss of profits on sales or anticipated sales or losses due to expenditures, investments or commitments made or in connection with the establishment, development or maintenance of the business.
On October 24, 2018, the Company initiated a third lawsuit against an affiliate of Soex, Zhongshan Trans-Tech New Material Technology Co. Ltd. Zhongshan, China, (“Transtech”), and the Chairperson of the affiliate and Soex, based on new information learned by the Company. The Company will seek maximum relief and damages for this on-gong and growing illegal misuse the Company’s Intellectual Property. The Company feels this third action will lead in a judgment in favor of the Company.
With this knowledge we must ask ourselves, why did Dais dismiss the case?
I believe I found the answer further down the statements.
“The company is holding Preliminary discussions with parties who are interested in licensing, PURCHASING THE RIGHTS TO or establishing a joint venture to commercialize applications of the company’s technology.”
Could this be SOEX? I truly believe that Dais was either offered a buyout for one of their patents or was promised a better deal from SOEX.
We should get a better picture of this in the next 10Q, just a few days away.
Next up, we have a huge licensing deal with HAIER group. Maybe you’ve heard of them. They are a 65b dollar company in China. Haier is using Dais patented tech in their refrigerators. This deal is worth a whopping 73 Million dollars ANNUALLY. The revenues haven’t even been realized on the books yet. Here is an Excerpt from the financials;
“In the quarter ending September 30, 2018, the Company (September 2018) announced that we entered into a second definitive two-part, license agreement with the Haier Group of Qingdao, China for a new product for Haier’s HVAC cooling systems. The new product is anticipated to have a significant revenue impact for Dais, projected to be $73 million or more annually when successfully field tested and fully deployed. Revenues for Dais could begin as early as the last quarter of 2019. The product is an innovative PolyCool™ condensing unit being incorporated into a commercial Haier cooling line that is planned to be deployed into Haier’s Greater China sales and distribution channels. The product is moving into field testing with deployment into Haier’s sales channels throughout Greater China.”
Paying attention yet? Want to know more? Here’s an interview from the CEO of Dais where he mentions the HAIER deal and its capacity.
CEO Tim Tangredi of Dais Analytic Corporation (OTCQB: DLYT) Feb '19
https://youtu.be/kFXxa4UIHtM
If you listened to the whole interview, you would have caught Tangredi mentioning his chat with President Xi of China. At first, I thought this was BS, but I dug a little further and found this little nugget.
https://www.cnbc.com/2017/11/02/here-are-the-...trump.html
Does #9 sound familiar????
Tim Tangredi, CEO of DLYT accompanied PRESIDENT TRUMP in China!
“A priority of Trump’s Asia tour will be bolstering trade with some of the United States’ top business partners.”
ARE YOU LISTENING YET????
Just like any other company, Dais has some debt. Unlike most Pink sheet companies, the debt isn’t significant. There was a note from February 2019 for $155,000. Nothing crazy. There are also some lingering notes from 2018 that are due to mature on August 15th. These notes were extended from March 2019. I believe the reason for the extension was because August 15th is the due date for Q2 financials. The note holders knew that Q2 would be strong. Moving forward we may have pockets of light dilution, but again, nothing overwhelming. In fact, the notes could turn out to be extended further. 1.3m in debt is simply nothing for a company that is increasing revenues rapidly. No loan sharks or toxic convertibles that convert at .0000005. Here are the notes in detail;
February 2019 Note
On February 20, 2019, the Company issued a convertible note with a face amount of $155,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The note bears interest at 8% per year and matures on February 20, 2019. The note contains original issue discount aggregating $12,500 which is being amortized over the life of the note. The Company has also agreed to issue 1,000,000 shares of common stock with a value of $10,000 in connection with the note. The shares (which have not been issued at March 31, 2019) have been valued at $10,000. This cost will also be amortized over the life of the note. The Company received cash proceeds of $142,500.
2018 Notes
The company entered various convertible notes during 2018, aggregating $1,254,250. The notes all mature during 2019. During the three months ended March 31, 2019, three notes that came due during the period were extended to August 15, 2019. Pursuant to the terms of the extensions, we have agreed to issue one million shares of common stock for each month that the notes are outstanding, commencing in April 2019.
On a lighter note, Dais has drawn the attention of the U.S. Government more than once.
Dais Analytic Receives $1.2 Million From U.S. Department of Energy to Advance NanoAir Membrane HVAC Technology
Award Supports Dais' Drive to Commercialize a Product Line with the Potential to Change the Architecture of a 100+ Year Old Industry, Improving Efficiency and Reducing Its Carbon Footprint
ODESSA, FL--(Marketwired - May 12, 2015) - Dais Analytic Corporation (OTCQB: DLYT), a commercial nanotechnology materials business selling its industry-changing technology into the worldwide energy and water markets, today announced it has been selected to receive additional funding of $1.2 million from the U.S Department of Energy (DOE) to further commercialize its Heating, Ventilation, and Air-Conditioning (HVAC) membrane technology for its NanoAir™ product. The award is part of a total investment of nearly $8 million announced at the end of April by the Energy Department to advance research and development of next-generation heating, ventilating, and air conditioning (HVAC) technologies.
Even the department of defense has invested 8 million into Dais. They still receive money from the grant today, as reflected in the financial statements.
In conclusion, I would like to express that some of the statements in this article are opinion based. I am not a financial advisor, and shares should not be purchased on my recommendation. However, with that being said, I believe DLYT has an incredible outlook moving forward. They have grabbed attention from some of the biggest names in the industry, who all seem to want a piece of Dais technology. What if Haier decided to buy us out? 250m dollar buyout here sells us at 80 cents. Not a crazy evaluation for a company they already have a multi-year, 73m dollar agreement with. Although this may be speculation, it makes sense. With the HAIER deal ramping up and set to hit the books in a few months, I wouldn’t venture far to say that Dais is a major buyout candidate. Their books aren’t dirty, and they have extremely valuable patents. Patents so valuable that Chinese companies have even tried to steal it. Mix those in with rapid revenue growth, increased distribution channels through licensing partnerships, and the growing interest in clean air products, and you are left with the aforementioned “opportunity.” The question is, will you jump at it?