ICNM - First time on a conf. call with Mr. Deakin but seen other interviews with him and would've liked to be able to directly ask him follow-up questions which this format did not allow but thought he was very direct and answered questions as best he could. Following is my synopsis:
Progress building foundation for Icon in 2016
Had fair amount of success monetizing inventory with increased gross profit margin
Will file directly to the SEC
Finally completed financial audits for 2012, 2013 and 2014 and started working on 2015 and 2016
Saw Revenue 6% increase over 2015… expenses increased by 9% with loss increase of 4% ... don’t want to continue losses but necessary at this stage of the company
First quarter should see similar financial results and continue initiatives of 2016
Increased M&A strategies, should see results in first half of the year very encouraging
Became DTC/DWAC eligible and received much positive feedback
One other major point… senior management has been deferring compensation for past several years and will continue to do so in 2017… take very seriously being fiscally responsible
Clark – Are you equipped and have personnel to handle business?
For certain jobs have the needed personnel… other things continue to outsource and will continue till need to bring in house… should we land a large scale contract, feel confident can deal with it.
Searching for acquisition candidates… want to become a full service firm to be able to do it all… pursuing any positive ebida target acquisitions in this space
Joe - Can you consummate acquisitions during quiet period
Will need to defer to legal
Pennywolf - Would you do a reverse split?
Thanks for question, not contemplating an RS right now… looking to increase value organically.. take responsibility seriously
Wilma - Any update in terms of becoming SEC compliant?
Thank you Wilma… not only the SEC doesn’t give you timeline… auditors give a broad projection and encouraged lately from reports getting back from them… getting near completion of 2015 and 2016 audits… very happy with where we are with that process which takes a long while
Tom – why are O/S increasing… what’s it for?
For acquisitions, growth, comply with contractual obligations and potential acquisitions… very cognizant where we are in terms of ss and take it seriously… have to increase value for sh and ourselves
Joe – how are you going to be communicating with your loyal sh
Conf. calls… talked about road shows but might have to hold till 2018 due to cost… expand initiatives like this cc, traditional PRs… more with social media
We've picked up activity on acquisitions with a couple of targets…
Pennywolf – convertible debt on books?
Can’t control when debt holders convert… made a tough choice couple years ago to utilize that structure… existing noteholders left are very responsible… have built in floor prices into our notes to minimize dilution and toxic events… recognize pain these incur but necessary at this stage of our company… very encouraged with our existing partners in terms of structuring
However you feel about this 'penny' gamble...
Best to all with ICNM!
