Did you take into account what the starting point actually is? The net book value of TTSA is less than $300,000 and they have 67,505,400 shares to start with, which means one share is valued close to the levels of sheets of toilet paper. Tom DeLonge owns the vast majority of those (through a holding company). The company has generated net losses for the past years and has been funded with interest bearing loans that DeLonge has basically given himself with agreements between his own companies (one apparently being some hotdog stand), and he has basically made an agreement with himself that he gets his money back as soon as some suckers have invested enough to cover it. Additionally, he has made a deal for guaranteed payments of at least $100,000 per year in royalties, no matter of actual sales. So basically he has a lot of almost worthless stock in a company that makes losses but still pays himself money in any case.
So now they are then selling that same worthless stock, $5 dollars each, even though the actual book value is $0.003. So the so called investors are paying something like 1600 times what the stock is actually worth, giving that loss making company a valuation of $400,000,000 or so. Those numbers are batshit insane.
You're analyzing this like it's an IPO, which it isn't - it's a crowdfunding structure. The whole stock schtick is just the mechanism created by the SEC to permit a new class of organization, the "public benefit corporation," to raise their own money without going through a third party like Kickstarter or GoFundMe. There isn't even an exchange to buy and sell these shares. So it's really just a new kind of charity, and "investors" are actually "donors." And the terminology and legaleze was chosen by the SEC, not To The Stars Academy, so it's not like they're trying to "pull a fast one" by using it - it's mandatory.
And all of this is on the Offering Circular, so only a complete nutjob or retard would see this as a viable financial investment - if people are looking for a financial investment they should go buy stocks and commodities on the New York Stock Exchange, because this isn't that. My first career was stock brokerage, and I would never have brought this to a client, because it's not an investment vehicle, it's more like a special-interest charity but without the write-off (I presume that this can't be used as a tax shelter, since it's not technically a charity either).
So what is it, really? It's a way for people to support the efforts of To The Stars Academy to mainstream ufology and to donate money toward the research and development of a new gravitational field propulsion technology, primarily. I support both of those objectives, and I'm far more impressed with their people and their ambitions than I am with, say, MUFON, so if I had to choose which organization to give money to, I'd go with TTSA. Not because I would expect my "shares" to ever be worth any money, but because A.) these folks have already done something that MUFON has never accomplished in their entire existence - changing the conversation in the press/public about the reality of alien devices operating in our airspace, and B.) if they can make any scientific progress toward a viable field propulsion technology, that would ultimately be a game-changer for human civilization in a huge and extremely positive way. In fact the latter is the only real hope that I can see to avert a new global socioeconomic Dark Age. These people actually seem to share my view about that, and they sincerely seem motivated to do something about it, as I am.
As far as the money goes, DeLonge has apparently invested $600K to get this going, and it's clearly the primary focus of his efforts at this point in his life, so I don't begrudge the guy a paltry $100K/yr in royalties. That'll probably pay for itself easily anyway - he's just moved his artistic efforts under the TTSA umbrella. And their most optimistic projection of $50M raised leaves the principals with an average annual income of $136K/yr (I count 11 people on "The Team"), which is a very modest salary for top management. Christ, look at the salaries of any CEO - they're all at least 1-2 orders of magnitude higher than that. The CEO's of most of charities you'd recognize by name,
generally make between $500K to $1M/year, sometimes more.
Besides, your average charity spends 90+% on "operating expenses," leaving less than 10% for its charitable purpose, so by comparison (which is a far more accurate comparison than your grandmother's retirement portfolio, as you're interpreting it) this is a far more earnest expenditure structure.
So no, I don't see any villainy here. No investor in their right mind would see this structure and expect to get their money back. But anyone who feels that
somebody should be making a sincere "Hail Mary" effort to save the world, could rightly see this as a sincere attempt. And I'm glad for it - I'm hard pressed to think of another real ray of hope for the human future. Can you?