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Time stamps:
0:55 SEC Form 10 K and Form S 3 on Nasdaq filings.
1:46 Reading form 10 K for $YRIV stock. Revenue, cash, operating expense.
4:15 Looking for stock offering, warrants, convertibles for YRIV stock.
6:15 $YRIV form S-3. $300 M shelf registration.
8:35 $ZYNE. Why biotech stocks are evaluated differently?
10:31 Looking for offering on ZYNE.
12:42 Summary

Shelf and ATM offerings explained. SEC Form S-3
   • How to read SEC Filings - Penny stock...  
What to look for in penny stock SEC filings for day trading? I will show you all the KEYWORDS to search for in form 10 K and form S 3 in this video. You will be able to spot dilution or offering in under 10 minutes, and decide whether this penny stock is a buy or sell.

My favorite website to look for SEC filings is Nasdaq.com. That's where you can find all the filings including quarterly financial statement on these penny stocks. Form 10-K is the financial statement and Form S-3 is where you can see new shares registered to do an offering / dilution.

Looking at Form 10K for $YRIV. We can see the company never made any revenue. They have high operating expense, or burn rate, and are low on cash reserve. So the question at this point you should be asking is, if this penny stock company have high operating cost, low cash equivalents, and no revenue income, how have they been paying millions of operating cost over the last few years?

The answer can be found by searching for "shares outstanding". If you see an increase in share count by tens of millions over the years, thats a sign of stock dilution. YRIV has been selling more shares and diluting their investors in order to make money to pay for debt and expenses.

Next what I look for is stock offering, warrants and convertibles. So I search for those keywords in SEC filings to look for their offering or dilution history. While YRIV doesn't have outstanding warrants or offering history, this small cap penny stock company has a history of issuing convertible notes over the last few years. Convertible notes are debt securities.

Let's look at YRIV form S-3 next, which is a statement public companies have to file when registering new shares to the stock market. In this form S3 we can see YRIV has a shelf registration of $300 Million dollars. "Shelf" registration allows companies a window of two years to issue secondary offerings any time they want.

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