 Hey traders, this is Tosh. I go by T Bradley 90 in the my investing club chat a general reminder for those who do not know MIC is having a one-year anniversary event where bow is going to be trading live in front of our members It's coming up August 17th mark your calendars as an added benefit for our members The event is 100% and exclusively free for annual and lifetime members While lifetime on top of that get extra coaching before the event and guaranteed front-row seating While most charged for these events we show our support by making it again Free for annual and lifetime members if you are interested in signing up for this event DM T Bradley 90 in MIC slack chat and or email myself at Tosh at my invest in club calm Now we have a very special video for you guys this week as Matt who goes by Chicago trader one of our top moderators in MIC chat returns for episode 28 of his fundamental analysis series In which case this week he's going to talk about R e K R and deep dive into it And while today is just a preview of the full-length video if you want to watch the full-length or any of our exclusive Content then become a member of MIC. Hey, everyone. What's going on Chicago trader here checking in for the weekly fundamental video? Hope you guys had a nice trading week here I'm gonna go over one name a little bit more in depth and then a couple others. I'll just skim at the end But I wanted to kind of dig into this one Recourse systems the tickers R e K R Kind of just got just brought to my attention Someone in Chad mentioned it and kind of got to looking at the chart and Definitely interesting play here. So if you look at it, if you guess I haven't seen it already April, you know, this thing is down here at 60 cents and it's had quite the run All the way up to almost 550 and it's closed So once I, you know kind of started digging into it There's a few things that I thought were kind of interesting that caught my attention. So the first one was an AK From the 18th of March here. So usually when I'm looking through these AKs, you know It I don't look for anything in particular, but material definitive agreements are usually things that I just go check it over There's a lot of times it can be with raising money or reducing warrants, whatever it is So basically they I mean the company is not that large You know at this time, I think that the company is working up around 10 20 million dollars and here they basically do a They agreed to a note Of up to 20 million dollars. So, you know, nothing to see but once you kind of get the reading into it You know, they pay $650,000 in fees You know, they're going to be paying monthly installments of $40,000 each And then here on this last sentence on the earlier of the maturity date or payment in full of the obligations under the no purchase agreement The company shall pay an exit fee of a million dollars So essentially if They pay it off obviously when it's due or they pay it off earlier, they have to pay a million dollar fee So I was looking into that. Let me go here through my highlights You guys don't know anything you highlight on a, you know, this BAM sec, which is 25 bucks a month You know, you can kind of come over here and look at it. Oh Yes, so this is in the most recent 10 Q So under this agreement they Hey Where's that? Anyways, I'll find it. They paid 24 percent. There it is. He the effective interest rate on 20 million dollars that they Borrowed is 24.8 percent Which is absurd. They're gonna pay almost five million dollars of interest And they gave the company, you know the 2.5 million warrants at 74 cents So whoever gave these guys money is just absolutely banking So I'm gonna scroll to the top of this 10 Q. Sorry about that guys Companies got 20 million shares Pretty low on cash and one thing I didn't you know kind of right realized they have a you know $7 million in receivables and You know, you don't know when it's gonna come in how much is gonna come in so you got to kind of play that one out You know, obviously got a lot of debt now with this the company they do AI for you know, a few different industries law enforcement Banks logistics, so you know, it's not a complete fraud. I guess like business model What else was there to see in here? Yes, we'll see this is another thing with the accounts receivable You can like a lot of times I'll tell you how much they expect this, you know to receive if any of its doubtful that they don't Think they're gonna be paid and you know, it's just a little bit. You know a few hundred thousand dollars But anyway, so here's what I wanted to kind of just you know put it all together Obviously, this is an investment advice guys on my part or in my sees so do your own due diligence But the company of 19 million shares outstanding the floats about 10 million And that you know, you got to obviously this is where it comes a little bit tougher when they got these warrants and the money If they're exercised, it's about 12 and a half million shares So the if we zoom in here on the chart And just get this real quick The highest closing price I think was 536 535 somewhere around there So you can see there's pretty big difference, you know, they got the 12.5 million shares, right? So if they did exercise all the warrants times 536, which is the highest closing price in the last 60 days They can raise, you know, $67 million divided by three because they're restricted $22 million so and even if they can't you know, say, you know, if they ever Exercise the warrants then you can have about 18 million dollars. So that's why I'm sitting there thinking okay, so the cash You know, they're under by three million dollars of cash even if they did exercise the warrants So, you know, they got at least, you know, two or three months of cash Hey traders, this is Tosh. I go by T Bradley 90 in the my investing club chat Just wanted to reach out and say if you have any questions about M. I see joining M. I see maybe you're a member already You have three ways to contact myself personally and through M. I see you can hit our social media You can hit me through pms and chat or you can contact us through my email at Tosh at my investing club calm That's Tosh at my investing club calm I will get back to you in a timely manner and I'm saying this because I'm here to help and I don't want anybody to be Afraid to reach out and ask any question that they have we are here for you guys. All right. See you guys