By Tom Winnifrith | Thursday 15 December 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Amit Ben Haim and Cloudtag (CTAG) appear happy for me to call them liars over the events of last week. They have not sued me for libel so let us assume that it is now a given, accepted by all that they are liars. But then for a company that has committed wholesale securities fraud as has Cloudtag, is telling grotesque lies really such a concern? So what to discuss today? Well how about one of the ways CEO Amit takes cash out of the company. The serviced office trick.
The last filed accounts for the operating subsidiary of Cloudtag Inc ( the ofshore parent) , that is to say Cloudtag Active Limited are for the year to September 30 2015 and show amid oodles of red ink that it paid £30,600 to SB Corporate Finance for the provision of office space. For a company with no sales at all why does it need office space at the 7th Floor, 1 Knightsbridge Green, London SW1X 7NE? Why indeed?
So what does SB itsef do? Norra lot. Its last accounts - for the year to May 31 2015 - show year end cash of £306, down from £359, and a profit that year of £13,478. I guess folks were a tad slow in paying their bills. It is clearly a joke small company and one imagines the rent it gets from a company needing no need for plush London offices comes in handy.
So where are he offices exactly? You can see the website showing these offices HERE - yes they are services offices. That is to say all SB is paying for is the ability to use a room when it needs it and for a phone answering service. You can take advantage of this as Lucian did yesterday calling 0203 368 6022 - a prime London number - which got him throuh to a call centre and a nice lady who said she was working in Nottingham.
So how much is joke company SB paying for these offices exactly and on what basis was the recharge to Cloudtag justified. A couple more questions for the liars.
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