Ann: Placement and Share Purchase Plan, page-179

I actually do not think all of the calling is desperate. In fact, it is pretty standard.

What is a bit desperate (in my opinion at least) is the massive dilution over the last 2 years by performing the maximum possible capital raises. The company is going to have around 400m shares and options (many of them ZEPOs) and a lot of the upside will be gone.

However the desperation might be necessary. When DRO was spending "just" $5-6m a year in operational costs they were not even close to competitive with the SRC and the other big guys who have been winning the big contracts and airports. Unfortunately, I do not that think that all of these news jobs and additional spending will change that but I guess it is the only chance DRO has. The only problem is with this higher cost base they probably have to sell $20m this next year just to break even, else we are back to more and more capital raises until well...

They could always cut the exec packages (which are currently around $2m between the CEO and board) for a company only bringing in $2-3m in cash a year while losing a ton of money ... but with everything we know about DRO exec packages only seem to go up, even as stock price goes down. My fear, and I hope it does not come to this, and that DRO becomes a permanent lifestyle company. One with highly paid execs and poor financial performance (which is has been for the last 4+ years in my opinion).