Thanks CF,
I didn't mind the deficit spending. Regarding Wave, I told a friend of mine that hiring and firing people isn't easy and that good people are hard to get. SKS had a whole lot of qualified people brought into Wave via the Safend purchase and needed them trained in Wave stuff. Great, lots o' smart people now on board. He could have fired a number of people and then tried to rehire as business ramped. However there are not a lot of smart cybersecurity people available now, I know of reqs that have been unfilled for 12-18 months looking for qualified TC specialists.
So he tries to fill the gap while revenues ramp. He thought that good news was coming so the dilution would be minimal and that a few deals might close. I get all that. It didn't happen, though. So he needed a better plan B. Apparently his plan B is to xxxkin' dilute to company to death?
Here is a better plan B. Delay key salaries. Don't ask for pay raises for the BOD at the same time you f'd up. In fact, offer a DECREASE in salary. It is amazing what a gesture can do to sentiment and stock price. Another plan B: don't start an incubator company (ie scrambls) at the same time as you are bleeding cash.
So that is all hindsight, what to do today? Line up buyers for $10 MM in stock. Dilute us by 10%, trim cash flow by $2MM by reducing payroll and delaying AP, and stop fibbing.
We will see 0.50 before this is through and have to hope we can climb back up once TC starts engaging, which it will.
| 