DD Florida closing its doors

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  09 September 2012
Very sad and unfortunate to hear. As a Florida resident and member of this community seeing this kind of stuff just hurts.

Best wishes for those involved moving forward.
  09 September 2012
"Hey the real question is: where did all the money go?"

This is the best article I've seen on where the DD money is and is not:

  09 September 2012
Quote: "This is the best article I've seen on where the DD money is and is not"

Thanks for that link Mate as it explains quite alot.
If indeed that Data is accurate it means that DDMG held a Short position on its own stock and Literally bet AGAINST it rising in value!!

This is what caused massive legal lawsuits in America after investment banks that had a Fiduciary responsibility sold clients those Mortgage backed securities while at the same time betting against there Value via short sell contracts.
This is Bloody Criminal!!

See underlined portion of the Excerpt from the linked article

Quote: "but many of these warrants have a put feature which allows the owner of the warrant to put the warrant back to DDMG and receive cash in return after a certain date (most are several years out from now, ex. 2016-ish). The amount of cash received is equal to either the common stock price at the time or the price of one of the series of preferred shares, depending on which issue of warrants you look at. Each issue has its own terms.

As DDMG's stock price goes up the company is on the hook for a potentially bigger cash payout. GAAP accounting rules state that warrants with put features like this are required to be treated as liabilities, and those liabilities get revalued every reporting period based on where the underlying stock price is. That revaluation of the warrants affects earnings even though it's a non-cash charge: an increase in the liability reduces accounting earnings, a decrease in the liability boosts accounting earnings. While this sort of non-cash revaluation charge or credit happens at other companies, the difference with DDMG is that with no earnings and a truly vast amount of warrants outstanding (if all the warrants were exercised the 22 million new shares created would swell the existing share count of 44 million by 50%), the warrant revaluation has a very large impact on accounting earnings, at times overpowering the numbers of the actual operating business."

  09 September 2012
Me thinks that Digital Domain has hit an iceberg. From previous work, they should know fare well what follows.
Perry Shulak
Design, Illustration, writing and interactive media
  09 September 2012
Originally Posted by ambient-whisper: Granted, 35 million would be hard to chew through that quickly, unless said ceo took a large chunk for himself.

A chunk like say, 16million just in 2011?
  09 September 2012
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