Tom Delonges UFO Company $34.4 million in Debt

a reply to: Paddyofurniture

Is this company structure normal? ...

Someone qualified in this area of business may be able to offer a more accurate view.

All DeLonge's existing companies have been vertically integrated under the TTSA umbrella. Which increases the level of complexity. Here is how all the companies interlink.



This type of integration is not unusual in huge corporations. But given that there are only half a dozen employees running a supposed Science, Aerospace and Entertainment venture with very big plans I would say that it is in this case.

The SEC filings (page 7) confirm the valuation of the company is even more than purely speculative.

The offering price has been arbitrarily set by the company and the valuation is high. Valuations for companies at this stage are generally purely speculative, and even more so in our case. We have not generated any revenue from the aerospace and science projects we plan to pursue, nor do we have deals in plac e yet to do so. Our valuation has not been validated by any independent third party, and may decrease precipitously in the future. It is a question of whether you, the investor, are willing to pay this price for a percentage ownership of a start-up company. You should not invest if you disagree with this valuation

Parabunk have an article that goes into a bit more detail.