According to the disclosure, the promoter has been paid a total of $22.5 thousand for touting LUVU by the company itself and Equities Awareness Group. Additionally, the editor and publisher of the newsletter owns 88 thousand shares of LUVU, which were purchased at $0.25 per share.
The latest financial report of the company was the first one showing net income. A significant milestone, although it was just short of $40 thousand. The net sales for the quarter ended December 31, 2011 reached approximately $4.3 million.
If the revenues and income continue to grow, LUVU's balance sheet may start looking better, but as it was at the time, LUVU had about $3.3 million total current assets and a million more total current liabilities.
It will be interesting to see what the promotion does for the price of LUVU stock. When companies openly pay for promotions the market reaction is hard to predict, for some.