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Summary

  • A view of the WindStream story - pre-inception through today.
  • We'll see "Deferred Success," "Crony Capitalism," and a "game-changing technology."
  • Here's a current look at past projections.

It should first be duly noted that 2 other reports have done marvelous jobs of exposing the promotion of WindStream Technology's (OTCQB:WSTI) stock. You can view those reports here and here.

Rather than rehash the very relevant information contained in those articles, this body of work will focus on identifying the possible shortcomings of the company, itself; from its humble yet perhaps overly-ambitious beginnings, through its relocation from the West Coast to the Mid West, and into its deployment into 3rd world countries. By no means is this the entire WindStream story; only a glimpse of one possibility. It will hopefully peel back a few layers of the due diligence process and expose some angles of fundamental analysis that are paramount to successful investing. Although our walk down Due Diligence Lane will most likely yield no monetary returns, hopefully it will serve as a guide to be used in the future; and, if we are lucky, it will produce a good story to tell your friends. You see, behind every good stock promotion is a story that is well-worth the price of admission. So, let's pull back the curtain and let the show begin.

It is safe to assume that the ring leader of this show is the company's CEO, Dan Bates. His corporate bio states that he has over 20 years of experience in the technology sector, and that prior to joining WindStream he was President of Avant Interactive from 2001 to 2006. Sounds as though Mr. Bates could possibly be a good leader, and maybe with a little luck he will be able to engineer a device, namely a vertical axis wind turbine, the likes of which the world has never seen. However, as part of any proper due diligence performed before deciding whether or not to invest money into a company, one should take a closer look at his time at Avant and at his life prior to Avant. Then, a potential investor might be able to better render a final decision as to Mr. Bates' ability as a CEO to spearhead a renewable energy company with global aspirations. Now, apparently you can hire Dan Bates to speak publically, and I am sure that he could do a much better job of answering in person all of the many questions that you might have for him. However, it will have to suffice for our purposes to assume that he included most of the relevant information on his historical biography as seen on the All American Speakers website:

As you can see, Mr. Bates started out in the Music business producing and engineering ... Using his music and film production experience Mr. Bates went on to produce and co-produce many independent feature films ... In the mid 90's, Mr. Bates formed a successful start-up company, Extreme Audio Reality, which changed the way audio is handled and encoded in the video game industry.

I suppose music and film production is technically technology. Perhaps not what one would expect of a man who would later become the CEO of a wind turbine production company, but anything is possible. Which brings us to 2001 and to Avant Interactive. There is a good bit of information floating around the Internet on Avant Interactive, but something of particular interest comes in the form of a lawsuit involving Creatier Interactive, Bates, Avant Interactive, and others. I am not passing judgment, only reading up on historical information. This is from the Superior Court of California's case:

This dispute arose after Bates, Plaintiff's former President and CEO, allegedly misappropriated and converted Plaintiff's trade secrets, including patent-pending software designs and source code, and other confidential business information to begin a competing business with the financing and complicity of other defendants.

This document also has some worthwhile information. Be sure to note the date of the judgment against the defendants: March 5, 2007.

Again, I am not passing judgment on anyone, nor have I fully investigated the court proceedings. I am only piecing together one possible path, which may or may not turn out to be correct. As is the case with any investment, only the individual can decide for himself what information he believes to be most accurate. However, if we are to assume that all of the above is fairly accurate, then this next document that outlines Avant Interactive's bankruptcy is logically interesting, as well.

If you scroll down, then you can see this entry. Notice the date:

Avant Interactive: Case Summary and 8 Largest Unsecured Creditors
Debtor: Avant Interactive, Inc.
195 Green Pond Road
Rockaway, NJ 07866
Bankruptcy Case No.: 07-14967
Chapter 11 Petition Date: April 10, 2007

So, it would appear that Avant Interactive filed for bankruptcy a few days after the judgment against them. Again, not being privy to all of the particulars of that case, only a degree of conjecture can be resolved. However, it is of material importance to know that there is at least the possibility that the CEO of WindStream's last company entered Chapter 11 under less than desirable circumstances. It would shed a different light on "experience in the technology sector."

Moving forward, it is reasonable to believe that Mr. Bates would begin to think about a new career after Avant declared Chapter 11. Surprisingly, Mr. Bates seems to have found his new passion in a timely manner, as this is from the California Secretary of State:

Entity Name:

WINDSTREAM TECHNOLOGIES, INC.

Entity Number:

C3155913

Date Filed:

07/21/2008

Status:

ACTIVE

Jurisdiction:

CALIFORNIA

Entity Address:

819 BUCKEYE ST.

Entity City, State, Zip:

NORTH VERNON IN 47265

Agent for Service of Process:

DANIEL L BATES

Agent Address:

549 4TH STREET

Agent City, State, Zip:

MANHATTAN BEACH CA 90266

As one can see, it only took Mr. Bates a year and 2 weeks to incorporate his new dream, and WindStream Technologies was born. It is difficult to ascertain the level of expertise in this new industry that one could obtain in such a short time frame, but again, anything is possible, and Mr. Bates is most likely a highly intelligent individual. Only time can remove the veil of speculation.

To recap, up to this point, it seems as though Mr. Bates may have produced music, developed meaningful technology for audio used in video games, and may or may not have "misappropriated trade secrets" before his company went into bankruptcy. It only seems logical that the next step should be to engineer, build, and sell wind turbines. Well, perhaps that is a stretch. Only time will tell.

As we move along the time line, there seems to be a gap of sorts between 2008 and 2011, during which time it can be assumed that WindStream was busy developing their product at the Purdue Research Center in New Albany. In November 2009, a local news outlet told of how WindStream would relocate to the area in thanks partly to an incentive package provided to them by the Indiana Economic Development Corp.: At the time, WindStream predicted that they would bring 260 jobs to the area by 2012. Hang on to that thought, as it will be revisited shortly.

Meanwhile, in August of 2011, WindStream entered into a lease for its principal and current office, located at 819 Buckeye Street in the somewhat sleepy town of North Vernon, Indiana. How did this town of roughly 7,000 people land a tech company like WindStream? A local reporter caught up with a man named Travis Campbell who suggested that there was "a little bit of luck" involved with getting WindStream to locate to North Vernon.

However, I am not so sure that I would call it luck. You see, according to the article, Travis Campbell is the son of the town's Mayor, Harold Campbell. "The North Vernon City Council pledged to loan the company up to $1.4 million at 5.5% to help WindStream launch operations in their town. Additionally, the city council announced that the Government Support Grant Committee in neighboring Lawrenceburg had awarded the city $1 million for the project; money that had come from their Hollywood Casino." This video from the Indystar sheds light on the crony capitalism at work when it comes to the history of those Lawrenceburg casino-money grants.

Consequently, as luck would have it, Travis Campbell was taken on by WindStream to serve as the company's COO. COO, that is Chief Operating Officer, which is usually one of the highest-ranking executives in a company; in this case, a company that is going to develop, manufacture, and sell energy-producing vertical axis wind turbine systems on a global scale. I guess that is luck. Travis Campbell must have seen the global opportunity that was at his footstep because according to the company's bio page, "In 2005, Mr. Campbell explored his interest as an entrepreneur and built a $30 million brokerage and logistics company." A quick perusal of the company's filings with the SEC show that Mr. Campbell must have left whatever he had built for a position where he would receive compensation in the amounts of $62,115 in 2011 and $39,230 in 2012, in addition to some stock options. If you can find this $30 million business, then you have done better than I. The best that I could do was to locate some trucking companies run by Travis Campbell in the mid 2000s, such as Freightstar Trucking and Ocean Star, LLC. Various websites suggest that at least a chance exists that neither of these entities could have been valued at $30 million, although I could be wrong. After all, WindStream was recently valued at well over $150,000,000 despite its financial woes, which we will get into soon enough. This site says that Ocean Star, LLC only had 1 truck.

This next quote is from an unidentified 3rd party, so I do not fully trust its information. However, before WindStream had gone public, it was posted on a local forum, which appears to be genuine enough, of residents of North Vernon sharing their experiences with WindStream; "This same son of the mayor, Travis Campbell, also had his hand in numerous businesses that went under roughly 6-7 years ago. To name a couple, H3 Mechanical and Oceanstar LLC."

Again, I am not certain if those companies went under or if they were sold for $30 million. However, if in fact it is possible that his $30 million logistic company did go under, then I would think that a potential investor would want to at least have the opportunity to further investigate the matter; much as I would expect that same investor to want to investigate the history of Avant Interactive's bankruptcy. Without that information, the investor perhaps could be led to believe that the board members left thriving, multi-million dollar entities because the prospects of the WindStream technology were truly worth the $150 million valuation recently placed on the company. Alas, we are about to find out that such valuation was probably a bit ambitious, and was perhaps a result of a pattern of misguided projections.

Referring back to the Floyd County News and Tribune article, "According to a news release, WindStream anticipates its facility will bring 260 jobs to New Albany by 2012." However, according to WindStream filings with the SEC, "In May 2013, the landlord terminated the lease and the company moved out of the related space." It does not appear, at least on the surface, that WindStream brought anything remotely close to 260 jobs to the New Albany area in 2012. Instead, they were seemingly busy setting up shop in North Vernon with the help of their newly found COO and son of the local mayor, Travis Campbell.

The PlainDealer Sun reported on Aug. 31, 2011, that, "WindStream expects to employ 40 when it begins assembling products in North Vernon. Within three years, it could have over 100 workers, officials say." While there are still a few weeks until Aug. 31, 2014, I suspect there is reasonable doubt as to the company's ability to employ more than 100 workers by that date.

In fact, the Indiana Economic Digest ran a headline on October 23, 2012 that read: North Vernon's WindStream Technologies lays off all employees. As you read the article, pay special attention to the following sentence, for it is foreshadowing: "Bates is adamant that the loan from North Vernon will be repaid because he is committed to finding new investors in WindStream."

Luckily for Mr. Bates, who was committed to finding new investors, there was an empty shell sitting on a shelf; perhaps put together some time ago by ... well, I will not go into those details, but if you look at the initial F-1 filing from 2008, then you will see this under Item 7 of Recent Sales of Unregistered Securities: "Solarte Hotel issued 100,000 shares at a price of $.20 per share to the JKAdvisers Hedge Fund, LLC in May 2008." JK are easily Googled, and I am not suggesting that they are in any way involved with any current operations. Just, they are worth a read if you are a history buff, and lucky for Bates that they helped to breathe life into that shell.

As a brick wants to be part of a wall, so does the shell aspire to one day have operations. For Blue Star Entertainment Technologies, Inc., (aka Solarte Hotel) these aspirations came to fruition just a few short months after WindStream laid off all of its employees in North Vernon; because what do you do right after you lay off everyone (Oct. 23, 2012)? You go public (May 22, 2013), of course:

Simultaneously on the Closing Date (May 22, 2013), the Company entered into that certain Share Exchange Agreement (the "New Share Exchange Agreement") by and among the Company, WindStream Technologies, Inc., a California corporation ("WindStream") and certain shareholders of WindStream (the "WindStream Shareholders") ... As a result of the New Share Exchange Agreement and the other transactions contemplated thereunder, WindStream is now a majority owned subsidiary of the Company.

Now that WindStream is a public company, a potential investor can begin to decipher the information and projections put forth by the company over the years. For the first time, we can use some simple math and The Google Machine to more accurately gauge the reliability of those at the helm. Let's dive right in, shall we?

First, pull up a document that cannot be found in any public filings, the WindStream Executive Summary 2012. This was most likely used as part of a presentation to potential investors while the company was still private. Also, you might want to screen shot that or save as PDF, just in case it gets taken down in the future.

You can read through all of it, but the proverbial meat can be found on page 2 under the heading "Pending Contract Pipeline." Of particular interest is the "Fully executed contract and purchase order of 10M $USD with Brazilian Windforce Technologica and Energia." If that was, in fact, a fully executed contract, then it should show up on the company's income statement, which now must be filed with the SEC as part of being a fully-reporting, public company. So, as curious potential investors, we need only to flip to the amended 8-K that is due after completing the merger:

Scroll down to page 13, which shows the Results of operations. As you do this, be sure to reference back to page 3 of the Executive Summary, which projects 33,500 units shipped in 2012 with Total Revenue of $5,579,000 in 2012 and $55,810,000 in 2013.

Now, this from the 8-K:

For the year ended Dec, 31, 2011, sales were $0. That is ZERO dollars. Fair enough, perhaps the $10M order was booked the following year. For the year ended Dec, 31, 2012, sales were $237,237. OK, maybe that was part of the $10,000,000. The only problem with that is that there were a lot of other contracts and installations on that Executive Summary. Surely some of those contributed to sales. Benefit of the doubt - maybe it was delayed and booked in 2013. Check this filing on Page F-5 for the 2013 data: For the year ended Dec. 31, 2013 sales were $896,561.

As you can see, those projections that were possibly used to lure new investors were a far cry from what materialized. Off by 98%, or almost $55,000,000?! How could management have been so wrong? Perhaps the same math was used when arriving at a $30 million valuation for a logistics company? The world may never know.

More importantly, what happened to that fully executed purchase order? After all, that does not sound like a projection at all. It sounds like a fully executed contract! Why were no meaningful revenues ever booked? And, why do those words "purchase order" seem relevant today? Oddly enough, during the recent hype of WindStream stock, there was a press release that talked about Purchase Orders that exceed $22,000,000 with the Jamaica Public Service Company. In fact, one of the most recent PR to date talks about WindStream's receiving of a $2 million working capital line of credit through GBC International Bank of California; a LOC that will allow WindStream to deliver on this purchase order. I am fully aware that past performance is not indicative nor does it guarantee future results. However, sometimes past performance is a pattern, a history, a track record that very much foretells of what can be expected. For the sake of the people of North Vernon, I would love to see this company succeed and for them to show $22,000,000 in revenues on their next 10-K, however my natural instinct is to not expect anything close to that. Time will tell.

We jumped forward in time as we looked at those financials, so let's take a few steps back to the time of the merger and take a look at how WindStream was able to fight back from laying off its entire work force.

As reported once again in the Indiana Economic Digest on March 21, 2013, "North Vernon's WindStream gains new life with city's $500,000 line of credit." It goes on to talk about some once again relevant names: "The North Vernon City Council breathed new life into WindStream Technologies Monday night with its approval of an 'intercreditor agreement.' The agreement will allow the local company to obtain a $500,000 revolving line of credit at GBC International Bank in Los Angeles, Calif., which WindStream needs to start producing its power generating wind turbines."

Interesting! The arrangement with GBIC seems to be a result of an intercreditor agreement, which is basically an agreement between creditors as to how the pieces of the pie will be divided if and when the proverbial wheels come off. Usually, one party will give up something to the other. In this case, it seems that the city of North Vernon did the giving up: "The city was asked to surrender its first priority security interest on all export-related inventory, accounts receivable and general intangibles. The city will retain its priority security interest on all other assets of WindStream, which includes equipment, tooling, etc."

Before moving forward, one has to take a brief pause to consider the taxpayer, whose money (assuming all government money ultimately belongs to the taxpayer) seems to be sliding down the financial totem pole. According to the latest 10-Q filing, WindStream had $321,322 of Property and Equipment, net of accumulated depreciation. The taxpayers had better hope that places like Jamaica and India can find a lot of buyers for this technology. Otherwise, there is at least a slight chance that they will never get fully reimbursed. Well, to be fair, even if they never turn a profit, the company can still raise more money in the future by diluting existing shareholders, which is something that I think is a mathematical high probability if they are to execute their business plan as it stands today.

But, for now, this new deal with GBIC begs the question, did the taxpayers have to surrender more concessions in order for WindStream to get what appears to have been an existing $500,000 line of credit upped to $2 million? Perhaps nothing more, as the $2 million LOC is backed by the $4 million Exporters Insurance Policy with the Export-Import Bank of the United States. Now, I will not get into the political madness that is the EXIM Bank. You can Google that on your own. There is plenty of information. What I will provide, is a court document that gives a little better view of an export insurance policy at work in the real world. Page 10-11 are worth a read if you are not well-versed in terms like 'exporters insurance.' Do you get a better feel for what kind of hoops are being navigated in order to bring this technological breakthrough to market; well, to third world market? While we are at it, we might as well visit that taxpayer loan, too. Again, pull up the relevant SEC document and scroll to page F-10, Note 9 - Note Payable:

In July 2011, the Company entered into a $1,400,000 note agreement with the City of North Vernon, Indiana. Interest accrues at 5.5% and the note matures on Aug. 1, 2016. As of March 31, 2014, and Dec. 31, 2013, the note had an outstanding balance of $1,400,000.

The Company was unable to pay the interest and principal payments due on Aug. 1, 2012, and was in default of such payment. The Company was able to negotiate payment terms with the City of North Vernon, Indiana, which allowed the Company to delay scheduled repayments of the loan. During the three months ended March 31, 2014, and March 31, 2013, the Company made $0 and $0, respectively, in payments to the City of North Vernon for accrued interest.

WindStream goes on to outline "expectations" in the following lines of the SEC document, but if I am to rely on their previous expectations and projections, then I find it difficult to believe that North Vernon will ever be paid back using corporate profits. Unless, of course, this technology revolutionizes the world. What are the chances of that? Let's try to figure it out.

The company's flagship product seems to be the SolarMill, which is a trademarked name. Before we take a closer look at it, let's take a moment to reflect on the renewable energy conundrum as a whole. It is somewhat expensive, relatively speaking. Therefore, the name of the game is efficiency and innovation. We need to get as much bang for the buck as possible - the most output while taking up the least amount of space, using lightweight materials, and ultimately being cost-effective. With that in mind, take a look at what the SolarMill offers to potential customers:

Tech Specs from the company website:

It weighs a whopping 185 pounds! It stands over 5 feet tall! And it consists of what appears to be a single 240 watt German solar panel. All of this can be yours for the low, low price of $300,000 Jamaican dollars + installation. Quick conversion math back into USD means that a Jamaican resident can get this contraption for a little more than $3000 USD. You can see the item for sale here.

Fair enough, but how much power will it produce? This is where it gets really interesting. Take a gander at the WindStream product website.

Now, look at the JPS promotional site. The SolarMill seems to produce about 40kWh/month. To put that in layman's terms, it can power maybe an 80 watt light bulb for 16 hours per day for a month. You can play with a calculator here.

Now, I am no renewable energy engineer, but herein lies the crux of the problem for WindStream Technologies, in my opinion:

The SolarMill apparently consists of a 240 watt German solar panel and 3 vertical axis micro wind turbines. According to various online solar calculators, a 240 watt solar panel located in the Caribbean will produce about 200 watts avg of power per hour * an average of 6-7 hours per day = somewhere around 1.3kWh/day. (This is a rough average, not an exact measurement). If we are to assume that Jamaica has about 23 sunny days per month, then multiply 1.3kWh by 23 and you get something like 30kWh per month. This is probably erring on the low side, as some people report getting better efficiency, etc. and that a 240w module is probably closer to producing 35kWh/month. (I encourage you to double check any and all math, as your calculations could vary from mine).

If the SolarMill produces 40kWh per month, and the solar portion of that should be contributing about 30-35kWh, then what is the WindStream portion delivering? 5-10 kWh/month? If that is correct, then the technology is hardly a technology at all. And, think about what a buyer of this product will sacrifice in return for the extra 5-10kWh. A 240w solar panel weighs about 40-45 pounds. Mounting hardware adds a few more pounds. In this case, SolarMill seems to add about 140 pounds to the weight of the single solar panel and extends not a foot above the roof line, but over 5 feet above the roof line. I doubt if this is the efficiency for which the renewable energy industry is searching, plain and simple.

To put it in even clearer terms, take a look at the power production of a wind turbine. WindStream's website shows the turbine component producing 143 watts @ 11m/s (25mph) and 500 watts at 17m/s (38mph). There are many power curve charts that you can look at, but here you can see the fact that production increases exponentially with wind speed. Conversely, production tails off drastically as wind speed drops. So, take a look at average wind speeds to fill in the missing part of the equation from above.

As you can see, the average daily mean speed is somewhere right at 10mph, or a little less. Going back to the power curve, you can see that production moves almost cubically with wind speed (further referenced here). So, in a 10mph wind, the production of the vertical axis turbine appears to be minimal at best, perhaps 40 watts? Hence, we can somewhat complete the equation that was missing 5-10kWh/month. In short, the solar panel appears to produce the vast majority of the power produced by a SolarMill, which is why I am quite sure the original TurboMill (wind) became the SolarMill (wind + solar). Please be aware that I am not a master of physics; I am only using information available and filling in the blanks to the best of my ability.

So, one must now consider return on investment. Per WindStream's filings, the cost of a Jamaican kWh is $.43. If the wind component of this thing is producing even 10kWh per month, then is that to say that it is producing $4.30 a month worth of power? So is it worth the price? More importantly, what is the value added amount of the wind component?

A 240w solar panel will cost you about $200-250. As a rule of thumb, an installed solar panel will run about 5$ per watt (some installers in the United States are actually getting down to $4/installed watt), or $1200 in this case, which usually includes the micro inverters, monitoring system, grid tie-in, etc. In fact, you can see a solar package offered in Jamaica by a local company.

Their 4000 watt system goes for $8,000 USD. A 4000 watt system, by comparison, should easily produce around 550kWh/month. On one hand, we have 40kWh for $3000. On the other, we have 550kWh for $8000. Easy math there. To view it from yet another angle, consider the weight difference for similar outputs: At 40kWh/month, It could be assumed that you would need approximately 14 units to equal the 550kWh/month of the solar array. 14 units would weigh about 2590 pounds, which would be kind of like parking a Mini Cooper hatchback on your roof. Of course, if you needed more power, then you could always purchase the more efficient SolarMill SM2-6P ... which is more efficient because they have skillfully doubled the wind component while at the same time quintupling the number of solar components. And that, I believe, proves my point that the solar component is the only component with anything close to real-world value, and it is simply being resold (Again, this is just a guess. WindStream likes to talk about Made in the USA, but the Jamaican Store says that it is a German panel, which I can only assume means made in Germany and sold to someone in the USA, who then sells it to someone in, in this case, Jamaica).

And this takes us back to the origins of WindStream. Do we believe that a guy who seemingly has roots in music production and audio could take a few million dollars and develop a meaningful wind power turbine technology that is better than what can be developed by engineers who work for corporations with seemingly infinite resources like GE? Will SolarMills be a part of the Pickens Plan? Although possible, it seems highly unlikely. Did they really need to blow through millions of dollars, much of which came from taxpayers, in order to come up with a device that seems to simply place an existing solar panel from Germany on top of 3 turbines which produces an unbelievably small amount of energy relative to the cost? Did the money even go to R&D? What did they research, because the development seems ludicrous? Why do SG&A expenses often dwarf the R&D expense? Why were they in default? How do they expect to execute a global business plan with $13,806 in cash as of March 31, 2014? How can they have meaningful expansion with negative working capital as of March 31, 2014? How will they generate positive cash flow without massive dilution when the cost of goods sold routinely trump the actual revenues? Why is there a photoshopped photo in their 10-K of an installation that seemingly does not exist?

Adding insult to injury, check out the photo on page 20. Now, take a look at the 6th photo down on this page. At first glance, you might question it, but look at the Lexus and the white station wagon. The photo was taken at the exact same time. So, either, a) Those 2 cars pass that stretch of road at exactly the same time and pace on more than 1 occasion and both the old man and WindStream were there to capture the photos at different times; or b) The old man does not like wind turbines on his walkway and photoshopped them out and then reconstructed the photo without them; or c) WindStream copied this photo, cropped out the man, compressed the file, and superimposed their dream on top before thinking to themselves, "this is a good idea. Let's put this in the middle of a 10-K filing with the SEC; a document that will be the cornerstone of a potential investor's investment-making decision."

Also in question is the installation on the IKEA photo, but I am sure the world will find out the truth about that in due time. Again, past performance is not always indicative of future results. However, quite often history is known to repeat itself. In this case, we have a history of "deferred success" as I am told is the politically correct terminology these days, a history of incredibly poor projections, and a history of misdirection and what some might consider to be outright deception. We have crony capitalism that seems to be at work, taxpayers' dollars seemingly gone to waste, and nothing meaningful to show for it. Unless, of course, you consider the $3,000, 5 foot tall, 185 pound, 40kWh/month producing albatross to be meaningful progress in the renewable energy sector. I am sure that Nader and Gore are ecstatic.

Revisit this story 1 year from today. See if WindStream has packed up their belongings and left the building at 819 Buckeye Street once again empty. Or, perhaps the government loans, the intercreditor agreements, the exporter insurance-backed LOCs, and the purchasing power of third world countries will pull through. Maybe the next 10-K will get filed and it will show that WindStream will have booked that $22,000,000 order ... along with the $10,000,000 that never showed up ... and the multitude of other orders pouring in from around the globe. That could happen. After all, this is from their own SEC filing: "The Company sells primarily to companies and governmental entities across the globe." Unfortunately, this is also in that same filing: "As of March 31, 2014, one customer represented approximately 97% of revenue."

Our journey is complete, for the time being. I hope that you found the story that transpired to be at least as entertaining as a trip to the movies. The good news here is that you didn't have to spend $20 for a drink and popcorn. And hopefully you will have gained a little insight into some due diligence angles that you might have overlooked in the past.

Editor's Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Source: WindStream Technologies - A Walk Down Due Diligence Lane