Endeavor IP, Inc. (fka ENIP)

[Huggy Bear]

Here is a working example of how all the net income from the lawsuits disappears into insiders pockets, and then some, which the public foots the bill for via the sale of discounted stock which impairs the investors position significantly. Now the share structure is poised to be maxed out, and investors crushed IMO.

Not that trading at .0002 is not bad enough already.

Revenue and Cost of Revenues

We recognized revenue of $ $1,415,256 and $ 1,395,001 for the year ended October 31, 2015 and 2014. The revenue for the current year period is the result of the settlement of eleven patent infringement lawsuits compared to four during the prior year. The cost of revenues related to these settlements during the current period were legal fees of $353,328 and inventor fees of $210,018 compared to legal fees of $563,907 and inventor fees of $178,972 for the year ended October 31, 2014. Settlement revenue compensation related to these settlements during the year ended October 31, 2015 was $353,814 compared to $418,500 for the year ended October 31, 2014. The Company accrued $150,755 and $0 for unpaid settlement revenue compensation owed to Mr. Diaba as of October 31, 2015 and 2014, respectively.

Operating Expenses

During the year ended October 31, 2015, we incurred compensation expense of $1,285,009, an increase of $825,075 or 179% from $459,934 during the year ended October 31, 2014. The primary reason for the increase was that on November 7, 2014, the Company entered into an employment agreement with Franciscus Diaba as President of the Company as further detailed elsewhere in this document. On January 23, 2015 we entered into an amendment to the employment agreement with Mr. Diaba that appoints him as our new Chief Executive Officer and Chairman of the Board assuming the duties formerly held by Ravinder Dhat in addition to his current role as our President. Except as noted above, the amendment to the employment agreement with Mr. Diaba did not modify Mr. Diaba’s the November 7, 2014 agreement. During the year ended October 31, 2015 the Company recorded $962,886 in compensation to Mr. Diaba, which excludes settlement fee compensation of $353,814 and director fees of $80,100, as a result of the agreement consisting of $300,000 in salary, a $450,000 performance bonus, and $212,886 in stock based compensation. At October 31, 2015 the Company had total accrued and unpaid compensation due, excluding accrued settlement revenue compensation, to Mr. Diaba of $684,231.

In addition during the year ended October 31, 2015 the Company recorded $291,021 in compensation to Ravinder Dhat, our former Chief Executive Officer and Chairman of the Board, consisting of $64,344 in salary and $226,677 in stock based compensation. During the year ended October 31, 2014 the Company recorded $394,078 in salary and stock based compensation to Mr. Dhat, which excludes settlement fee compensation of $418,500 .

The net gain from the 1.4 million in revenue from the lawsuits is 495K after the legal expenses are backed out.

The CEO was paid a bonus of 450K alone for 2015.

Who has paid for the shortfall in net income for the insiders?

Shareholders. And they have received a beating courtesy of the toxic financiers for backing the ENIP scam with faith in them.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11132725