The diminishing marginal return of paper designed to dilute in pursuit of goodwill and intangibles is nigh.
First observed over a year ago a drone business model of $550 million acquired three outfits for a promise of paper in exchange for $80 million of goodwill and not enough cash on hand to survive for another year.
An intriguing shareholder is Alpha Capital Lichtenstein that would now appear to own 13 million of the 77 million known shares outstanding after converting Series C securities according to the latest 10k.
The bet is that the blacklisting of Da Jiang will create opportunity in the 80% of the US drone market that Jiang controls. The bet now trades for a market capitalization of $55 million or less than the goodwill or intangibles on the balance sheet.
There was colorful price and volume activity when the printing presses whirred in 2021 replaced with the frenetic pace of option exercises and insider selling as delisting risk and long term liabilities come due this year.
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