What's going on ?, page-9

I do think it's an over reaction however it does highlight the fact that Mgt are very early on in their learning curve of operating a listed company as opposed to a private company. My thoughts on the release of the financials, restructure and impact on valuation are:

1. The restructure highlights John Boardman thought he got shafted out of his 6,000,000 performance hurdle shares for not generating $1.92m in profit due to Mgt/Board not understanding the impact of a change in ownership giving rise to Intangible assets i.e. contract/relationships and the associated expense going through the P&L. The issue of the 27,000,000 options therefore dilutes existing shareholders by about 4% however in return, we get John Boardman locked in for 4 years.

2. Paul Simmons obviously mis-calculated some expenses and as a consequence has reduced the purchase consideration by $350k.

When combining these two, I think they go close (albeit only just) to being square.