Facebook Q & A - Jan. 30, 2015 (updated)
Q. Can you explain the main benefits of acquiring SeerGate? Is it to cater to an Worldwide client?
A. The benefits are listed in the press release issued today. We bought the company for the software. The primary benefit is the sub-account management capability, that is the mobile payment app back-end that we were relying on partners for. A lot of the future features of MyECheck are in the Seergate software already.
Q. On researching Seergate, there was an article that stated they had 200 bank clients. Will MYEC keep these clients, and what are the prospects of integrating them all with the MyEcheck process?
A. SeerGate does not bring any bank relationship, but Jim Fancher has a lot of bank contacts, he ran SeerGate
Q. How will the new aquistion affect the float?
A. It will add 100M or 150M new shares, in exchange we get 5 years development and $5M worth of software that can greatly improve our revenue. Seergate also has customer prospects - big deals pending. IMO the deal is a steal.
Q. Can you tell us more about SeerGate? Will they still be a functioning company under the myecheck umbrella? How many employees are their? Current revenue? Current clients? Will they remain in their current offices in Atlanta?
A. We will role them up into MyECheck as one company based in Folsom, no current clients or revenue but international deals pending
Q. 1...Will MyECheck get Seergate employees in the deal?
2...There is amazing synergy with the Seergate deal, will MyECheck now be able to complete bank integration?
3...When do you believe MyECheck will be live with bank integration?
A. We get the system developers
MyEcheck: More on the acquisition of Seergate, the purchase price is 100M shares, unless the stock price is below $0.03 at the time of close, then it is 150M shares.
Q. Will there be trading restrictions on the shares that will be issued to Seergate, and will their founders be given positions at MYEC?
A. Yes, they have restricted stock just like me
Q. Why buy SeerGate with equity rather than debt?
A. Why incur debt when we can buy for equity and increase shareholder value
Q. Does Seergate have any debt that will be brought to Myecheck's balance sheets and to clarify the 5 years of support means their team will lend a hand if ask by the company for that time?
A. Seergate has no debt
Q. The SeerGate acquisition seems to be a pretty significant piece to the mobile payment system puzzle... Is that accurate?
A. It gives us our own back-end, plus other features we were going to build out
Q. Does Seergate then allow for MyEcheck to release its own suite of apps without the need for a new banking partner?
A. Essentially yes, but really it enables us to launch without a third party back-end partner that is connected to the bank
Q. Hi Ed the current bank integrations pre seergate do we have to start over with them due to this acquisition?
A. No
Q. Does MyECheck need to wait until the SeerGate acquisition is finalized to begin integrating the platform into the mobile payment system?
A. Integration is underway
Q. What additional bank involvement & interaction is required to integrate Seergate into Myecheck beyond the ogoing bank integration effort?
A. None, we have the necessary components and relationship in place
Q. Do you already have a plan for the social media payment technology that comes with seergate?
A. Yes
Q. By acquiring Seergate and creating a closed loop payment system, will it help resolve federal banking issues in the MJ business?
A. Yes, we believe we have the best solution for the MJ space
Q. When someone registers on the mobile payment system will MyECheck be responsible for storing and securing the banking data?
A. I don't want to comment for security reasons
Q. Does the current version 3.0 can fully support the payment system as far as the security or fraud is concern if we expand payment transaction globally? Thank you Sir.
A. Yes
Q. In the past you've stated that "International" isn't a focus. Now that you intend to acquire an Israeli company, does this give MYEC an opportunity to expand internationally? That is, facilitating transactions world-wide?
A. We will very likely be doing international business as a direct result of the Seergate acquisition. However we bought Seergate for the software platform and the capabilities it gives us for our mobile payment app.
Q. Ed I am in the gasoline business. I accept 4 million per location in credit cards all processed through Citgo. Have you contacted them. Also has this taken to long and or other companies gotten ahead of you?
A. We are on the forefront of this technology and have already secured relationships
Q. @edstarrs have we lost any partners along the way with app delays?
A. No
Q. @edstarrs have we partnered with any major banks or credit unions necessary for our app launch?
A. Yes
Q. Without naming any "is there any sizable whales in the picture that you are negotiating with right now". Yes or no please
A. Yes, more than one
Q. Ed, is it crazy for us to think that this is the best unknown product payment solution in the world that we are all apart of? We all know this...but what do all the people you introduce your product to at trade shows, conferences, etc think when you explain this to them? Are they blown away or are they more on the side of "yada yada yada.......we'll keep an eye on you?"
A. I believe it is the best unknown payment solution, I think others agree and many more will after they use our mobile apps
Q. What caused the delay of the sionic echeck option in January? Does this jeopardize the partnership with them? Google wallet allows an echeck option in the sionic app, will myecheck replace that?
A. We have a very solid relationship with Sionic. They are excited to launch our payment option and are now integrating with a new, bigger bank, AI expect they will launch this quarter.
Q. Any update of sionic app of when it will be launched? And have we started processing any clients that we have signed ? Thank you
A. Sionic told us they are 90% there about a week ago,they are finishing up with their bank
Q. Sionic and Myecheck have stated January many times. I understand things happen, Apple has delays. Everyone has delays. However, can you fill us in on why Sionic/Myecheck January launch is not happening?
A. The main problem has been working with banking partners, we believe those issues have been resolved
Q. Have you met with Mark Cheung at Itonis recently about their license? Did they pay in full for it last spring? Any updates on when it may go live? Thanks - you are the man.
A. I have not met with Mark recently, we will be going down there to train on the mobile app soon.
Q. Will it still be a spin off for green pay, and how long before it takes
A. We plan to spin off GreenPay, it has not been officially approved yet but we are making preparations
Q. Can spinoff happen without stolen shares being retrieved and if it can "how"
A. Yes
Q. Any progress with banking in Colorado?
A. Yes
Q. What’s the status of GreenPay? Is there a specific MJ bank you are working with in Colorado for GreenPay? When will it be live?
A. We are working with banks in the MJ space, mj-pay should be live this quarter.
Q. @Edstarrs, Can the first version of the apps be released so that any future enhancements thru seerGate may be in later versions? Delaying the apps has so far showed negative effect on the PPS in my highest opinion.
A. It will likely work this way with mj-pay, we will likely release a "light" version first to get to market fast.
Q. Is online gaming still a target for Myecheck? I would love to see you being the backend to PokerStars, etc.
A. It is, I think after we have successfully deployed our solution to the MJ industry
Q. Is there a marketing/PR plan for GreenPay once it goes live? It seems that the media should be all over it if executed right.
A. Yes
Q. Do you know if there are any advertising initiatives planned by Sionic Mobile and/or MyEcheck? Their app is amazing, yet not many people know ION Rewards. Obviously the more people who know about it and use it, the better MyEcheck's business relationship will be with them.
A. Yes, we have plans
Q. How will MyEchecks APPS be brought to market? How will you bring consumer awareness?
A. Trade secret marketing strategy
Q. Is VX Gateway live yet? I know they were going to acquire a bank to make things work.
A. No they are not live, they expect to be soon
Q. @edstarrs, what is the update on the CA certification?
A. We are fully registered in CA
Q. Are you currently bidding on government contracts? Why can’t you get a active status on Bidsync?
A. Gov't sales cycle is very long, our focus is immediate revenue
Q. Congratualations on the aquisition! I saw your earlier reply about govt payment cycles. Will you have to have a separate bank for govt integration? Sounds like a lower priority with all you have going on. On that note have you taken support staff with so many irons in the fire?
A. No separate bank requirement, we are limited to how much work load we can support as we grow, so we have to make strategic decisions regarding utilizing our resources for the most rapid revenue generation
Q. What clients are you currently processing payments for right now that don’t require apps? Are any other clients going live soon that don’t require the apps?
A. We have announced our customers in press releases, some are live, some are working on getting live.
Q. What clients are we currently processing payments for and are we making revenue from them?
A. Repeat question but we are making revenue
Q. @edstarrs When will we turn on the apps and generate revenues?
A. Best question of the day!!!! about 8 weeks, however we now have our own back-end, we are no longer dependent on a partner for certain functionality, and we have banks in place so we will be launching the apps soon and will provide more frequent updates as we move forward.
Q. Ed first thanks for your time. With all that you have going on with MYEC can you give us any projections of revenue for 2015 per quarter. I also would like to thank you in advance in make me money and I will shake your hand at the next stockholders meeting.
A. We have not publicly released our forecast for a number of reasons, we will in the future release revenue projections
Q. When will exclusivity be granted back to Myec? Why would you not if you do not choose to do so? Thanks
A. I don't really know what your referring to, but if you are referring to the patent, MYEC has exclusivity
Q. Ed, this past week the Market Maker VNDM has been selling shares aggressively into the float which appears to be dilution. Do you know what particular purpose/debt conversion this activity is for and if so, when it might end?
A. I have no knowledge of this, it is not related to debt conversion and no new shares have been issued
Q. @edstarrs last year u mentioned we would changed transfer agent .. when do u plan on changing the ta ? Can u ungag the ta?
A. We will change soon
Q. Why is the stock currently being diluted? What is the #1 priority you are working on?
A. The stock is NOT being diluted, in fact the opposite is happening
Q. Will the issue with being able to buy through Scottrade ever be fixed?
A. Their decision not ours
Q. @edstarrs, Are you going to use more of the TCA loan than the initial withdrawl to manage the current business expenses?
A. Probably not, we have no plan to use any more of those funds and I don't like debt
Q. Please re-confirm that will not reverse split the stock as you have stated previously that you would not. Thank you.
A. We have no plans for any stock splits
Q. How are things looking with recovering fraudulent shares?
A. We just received a positive update today, I can't report it here but expect a PR update very soon on that lawsuit and the disposition of the fraudulently issued stock.
Q. @edstarrs what is the current sharestructure ? O/s a/s float?
A. I may have an update on this Monday
Q. Any response from Zipmark or is there any talk or negotiations about it?
A. They filed a motion to dismiss, we just responded to that motion this week. We have talked to them and hope to evolve the discussions, they have not made any acceptable offers
Q. Is Check Alt infringing on your patent? Are there plans for a lawsuit against Check Alt for patent infringement?
A. Can't comment due to Zipmark litigation
Q. On Monday the Federal Reserve released their strategy for faster payments... their plan to make more plans as i understand it. Any thoughts? Has MyECheck reached out to the Fed and offered opinions/solutions? Or is the company's approach , "if we build it they will come"?
A. A little of both, Jim has reached out to them and we have another individual we are working with that would work with the Fed on our behalf, but we do not have a commitment from the individual quite yet.
Q. Is the FED hindering us from processing transactions under check 21 rails? If so what's the best ruling we could hope for? I'm not speaking to the future of payments, but under the current rules.
A. Not at all, they are working to help further enable what we do
Q. Why did you guys go DARK for so long and not provide us updates sooner? Can MyEcheck start providing updates at least once a week without a PR?
A. We update whenever we can
Q. If this has been asked and answered I apologize but are we still working with William Mills Agency? Recent PR's haven't had them listed so I was just wondering because I think this is going to blow up and it'd be great to have a good PR firm to handle things....
A. Yes we still have William Mills, they are working on other projects for us, Im going back to doing PRs
Q. What is William Mills role to Myecheck. I haven't seen them say anything regarding MYEC in a few months
A. Their role is industry awareness
Q. Do you have a timeframe to uplist to the next exchange?
A. Weeks
Q. @edstarrs when can we expect Sec approval ? What exchange will we uplist to?
A. We got comments back and responded about a week ago, it could be as soon as two weeks
Q. @edstarrs we have seen tweets to netflix .. have we made progress with netflix?
A. Yes
Q. Has MyEcheck been in talk with Ariba a major procurement service to our government if not are they on your list?
A. I believe we reached out but have not gained any traction yet, again not a primary focus this quarter
Q. With Ebay’s spinoff of PayPal do you think it will help you to strike a deal with them?
A. PayPal is a target account of ours, I think we need to grow a little more before they will take a serious look at us.
Q. Might you consider retiring more shares now that the price is back near .01? Thank you for your great work.
A. No, that will never happen
Q. Mr. Starr's, can you please confirm there will be no reverse split?
A. No reverse split
Q. @edstarrs we are grossly undervalued .. what range does management feel Myecheck should be?
A. Higher
Q. Is there any advise you could share with current/new long term shareholders to calm our nerves regarding $MYEC?
A. Quit listening to bashers
