Yes, the Q1 quarterly report was filed. The filing

Yes, the Q1 quarterly report was filed. The filing was very important for investors and I think it is a very good first step in achieving transparency. The OTC markets site now again shows "Limited Information", so we are one step closer to current reporting status, however Q2 quarterly report and disclosure filings would need to be released soon in order to get up-to-date. I am very glad the company is taking steps to properly report financials to the market, its a very good sign.

I reviewed the filing and it gives a complete and full picture of transparency for the reporting period (up to end of March 31 2012). Everything up to that point is explained in full detail and investors really needed this information. There are pros and cons, its not all pretty, but its not all ugly either. Overall, my perspective is that I remain at my targets in my previous post. I think one of the pros is that they have more operating cash now versus Q4 2011 and if one counts the extra $225k that they were able to secure from the market place, along with assets, up to the end of March, they had about half a million dollars in total value and very little liabilities (only one remaining loan debt that is a meager $80k which may have been already paid off). One can also calculate forward that because of the extra hundred million or so shares they have sold since the end of March, the operating cash level is probably higher as well as inventory levels (CannaCig), though the O/S is also higher at this point, however it appears that the dilution is over and the company has now been successful in paying off most if not all debts (no debt) and has diluted in order to build up an operating budget, so there should not be anymore reason to dilute this year. Knowing what we know from the shareholder updates, we also know that management has been using this new operating budget for certain business actions which should bring massive shareholder value going forward. This includes an audit, uplisting to OTCBB, buying product to increase inventory, services like webstore development, marketing, etc.

Until we actually see the Q2 filing we can only guess as to the current status but at least now we have a much clearer picture and more up-to-date knowledge of what has been going on under the hood of the company. This is great news. I think even after accounting for the spending on recent activities versus the capital raised over recent months, I estimate that major developments have already been paid for and on top of that the assets are about half a million along with the results of those activities coming to fruition very soon. This would mean that book value for RFMK is now about .0005 and its not atypical to have a stock with no earnings yet trading at about 4X book, so that would be .002, which is exactly where the stock is trading right now. There is a revenue stream and inventory on top of this valuation though, so I still think the market is undervaluing those potential earnings for Q3. I think EPS could easily be .0002, and if the market multiple is about 30 then just the earnings stream could add about .006 to the share price, this would give a final fair price valuation at about $0.008 per share, possibly by the end of Q3. I think if the market multiple moves higher (OTCBB) than that by Q4 or the revenues are larger than expected, the stock could easily move into the multiple penny levels. Just my opinions.

I like the fact that management has basically gotten the company completely out of debt! That is a huge plus. Also I like that the operating cash levels have increased dramatically since last year, that allows all of this business activity to actually happen to bring shareholder value. I do not like that the executives received a massive number of pref shares valued roughly at $1M dollars, it seems a bit high of a salary or payment for services for such a micro cap start up with no revenues. Many large cap CEOs are not even making $1M in share compensations, so this raises an eyebrow, however it is also true that many micro cap executives work for years getting these start ups off the ground and with no cash payments each year they deserve share issuances to be paid, as long as it does not happen each and every year and remains a yearly expense for the company. For now it seems like all of the executives and others have been paid for their services, debts have been paid off, cash has been raised for massive operations, inventory has been purchased, offices have been opened and now revenues are coming in. These are all positive developments. The transparency of the filed financials was desperately needed and if this is a taste of how management is going to operate going forward I think most shareholders can breath a sigh of relief. I think management is on a good path and I would say if they keep it up then we are all going to ride a wave of increasing valuation for a growing start up company with revenues going forward! All in all, very good developments, I would not be surprised to see the pps move back up to the moving average and possibly even up to half a penny depending on how many interested investors there are accumulating RFMK. I put my accumulation on HOLD because of the lack of financials, just because of investment discipline but as of today I can once again get back to accumulation!

GLTA!

$RFMK!