An obscure company in West Palm Beach that markets itself as a firearms manufacturer made a splashy announcement last summer: It was appointing Scott Brown, the former Massachusetts senator, to its advisory board.
Not revealed at the time was what Brown received in exchange for lending his name to the venture. But a report the company made to the Securities and Exchange Commission last month, which has not been previously made public, shows that Brown received stock that was worth $1.3 million at the time. Its value has declined considerably since then, as the stock price has fallen by half.
Global Digital Solutions Inc. does not yet sell or make guns. It has no revenue, no patents, no trademarks, no manufacturing facilities, and no experience developing weapons, according to its most recent corporate filings.
It was founded as a beauty supply company in New Jersey — selling hair spray, conditioners, and shampoos, before reinventing itself as a wireless data firm from California and then again last year as a South Florida-based firearms maker and gun technology innovator.
It is the kind of company, with scant assets and a shifting business model, that some financial professionals warn investors to steer away from.
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