8 Comments

Nice writeup! I do find it a bit odd the company owns assets in WV and Texas, is addressed in Utah, but incorporated in Nevada (which I've been told is at least a yellow flag). Have you been able to make contact with the CEO?

Also, you'll probably want to include the in-the-money options in your share count. Thanks for posting!

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Yes! Thanks for the feedback. I didn’t include the itm options because I mistakenly thought they were already excersized as they only showed up in the annual report and not the mrq... rookie mistake. Not sure how I made that mistake as I should’ve noticed the shares outstanding didn’t change haha. The Nevada incorporation yellow flag is something I have also heard, I’m more worried that the financials are unaudited, though they said (I think in the annual report?) that they are working with an auditor on a 3yr audited release. Thanks for reading!

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Can't say I blame you...I'm still not sure I understand why there are exercisable ITM options yet the diluted share count is the same as the basic count. Seems off to me.

Have you spoken to the CEO at all? I've tried several times, but no luck so far.

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Sorry for the late reply - I agree the diluted share count seems wrong. Regarding the call - I have't had any luck recently either, but maybe that was because of busyness surrounding the quarterly report. Speaking of which, did you catch the latest quarterly? No royalty revs yet, hopefully this quarter!

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Do you know why they decided to go public?

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Thank you very much for an amazing idea. Is it not possible to buy a controlling stake and distribute the cash?

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Theoretically yes - I just said it was unlikely to happen because it would take months maybe years for someone to build up a controlling position in a company this thinly traded.

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Yeah, I looked at the volumes, it would probably take over a year and maybe someone holds large blocks as well apart from the CEO and not going to sell at all. I wonder in general is there any way to force cash distribution in these small companies. Because I often see that they trade cheaply - but what's the point if you are never gonna see cash...

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