AEHI's Gillispie "forgets" to disclose unregistered sale of 116 million shares

Running a multi-billion merchant nuclear power company is no picnic. You're under constant attack by the rabid anti-nukes, Joe Lucid, His Dudeness and all the other lowly folks who dare to question you. Then there's all the bureaucracy, the filings, the finances, ...

So sure, it wears you down, and sometimes its difficult to keep track of all the details of the job. The printout of your annual report might not come out real straight. Sure, you could reprint it, but there are lightning bolts to harvest and there's that promising fuel additive. In other words there might just be a few more important demands on your time.

Then people don't think it's appropriate that only your daughter Taylor signed off on that annual report. And you have to refile it, now backed by an actual accountant. It sucks, you get sick of it. In other words at some point you might just start to cut corners a bit.

Enter AEHI's form 10q for this year's first quarter, forward to PART II, OTHER INFORMATION, Item 2:

"There were no unregistered sales of equity securities during the fiscal quarter ended March 31, 2010."

Hmm, interesting, I thought they were printing like crazy? Let's check the number of outstanding shares on the balance sheet:

"Common Stock, par value $.001, 500,000,000 shares authorized; 252,361,764 issued and 251,961,764 outstanding [as of 3/31/10] and 136,150,108 issued and 135,750,108 outstanding [as of 12/31/09], respectively."

Ok, Don, you never registered any shares, so any outstanding shares must be unregistered. Between 12/31/09 and 3/13/10 you roughly doubled the share count, issuing 116 million shares. Yet there were no unregistered sales? None?

Well I'm sure there was a more important demand on your time again.

Now, I've told you this before but maybe you don't remember all that well. If you breach the covenants in section 5 of the Roswell agreement you lose the ability to raise funds from Roswell automatically and permanently. And unfortunately section 5 contains this:

"such Commission Document did not contain any untrue statement of a material fact"

116 million shares - material? Naaahhh. Termination of funding agreement - material? Naaahhh.