Thanks. No I don’t think they would do that because we can take the Microsoft settlement and litigation funding as examples. In doing so, the Company took this money and paid off debt, paid salaries, funded the start of Blocksafe Technologies, serviced debt, and paid for research and development expenses for a decent amount of time. When we saw that the outstanding share count stayed at about 2.2 billion for quite some time, this proved to us that when management has proper funding that they do use it properly. I wondered when they had that money why more wasn’t spent on marketing. I came to the conclusion that they did not feel it would be worth the cost at the time.
The terms of certain notes for money lent to the Company can come with high interest rates if no other options are available. Then to pay it back by issuing shares, these have to be provided at a discount to the lender. The shares needed to do this can add up quickly. It doesn’t seem to have to be a cycle that repeats if revenue comes in, because then they don’t have to borrow money. They could also then potentially buy back shares to repay shareholders. For anything though, for us as shareholders or for someone in business for themselves, without making significant sales a profit just won’t happen.
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My comments are only my opinion and are not to be used for investment advice. Please conduct your own due diligence before choosing to buy or sell any investment.