Pazoo Inc (OTCMKTS:PZOO) Dives After Reporting
Pazoo Inc (OTCMKTS:PZOO)’s annual report for 2014 finally hit the web yesterday, after a month-long delay, and suffice it to say investors were not impressed with the results that it gave.
PZOO may have caught the investors’ attention in the past with loud and boastful words, but when time came for it to deliver some actual statistics, the results it gave proved less impressive than its words by far:
- Cash – $733 thousand
- Total assets – $848 thousand
- Total current liabilities – 3.6 million
- Revenues – $111 thousand
- Gross profit – $110 thousand
- Net loss – $4.8 million
And if the company’s financials look bleak, then PZOO‘s share structure and the dangers its financing practices represent to investor value could be called down-right horrifying.
Investors are advised to take into account the fact that, according to the company’s own filings, the company had about 111 million shares of common stock, outstanding as of May 13, 2014. As of yesterday, it had 525.4 MILLION shares of common stock outstanding.
As the annual filing can attest, all that dilution was extremely toxic. Let’s just examine the company’s latest dilution-related activities:
“In March 2015, we sold 375,000 Preferred A shares at $0.20 per share for $75,000.”
As evidenced by the annual report, said Preferred A shares can convert into a THOUSAND shares of PZOO common stock. Meaning that these shares cost the buyer just $0.0002 each.
And that’s just one of the many examples of toxic funding that can be found with just a little bit of digging in that report. Suffice it to say that the word “convertible” is mentioned 89 times in it. Investors should probably take a good long look at that section of the report, before deciding to commit to PZOO stock.
Long story short – it’s no wonder that the ticker dropped like a rock, and in light of what the report showed, it really wouldn’t be surprising to see it head even further down the charts.
