Quarterly Shortly, page-89

I have been described as a downramper ever since early Feb when I posted

1. Unless SMA change there business model they will never make a profit
2. The stock will trade into the 1's. What has shocked me is how long it has taken

And a few months ago I said they should raise capital before the the annual report was released. Unfortunately they will now to have to raise at a very low level.

And to those dreamers that now think that the new 20% gross margin business will solve the problem then you should consider the following.
1. Looking through the annual report they appear to have around 4M in overhead so at a 20% margin they need 20M in revenue to breakeven and a lot more once you factor in some marketting expense. This will take several years to achieve and most likely they will never breakeven.
2. Revenue(20% margin) was 500K for the quarter. In reality most of this is just existing recurring revenue for previous quarters. So 500K is a overstatement
3. Cash receipts was 1.3M , the majority of this will be delayed payments from months gone by so again overstating the real situtation
4. A capital raise at close to 1 cent is coming and the longer they take the closer to 1 cent it will be
5. A share issue without a underwriter will be an abject failure. And I dont know who in their right mind would actually be an underwriter.

Overall this is a very bad situation for shareholders and I wish you luck but I dont like your chances