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Yeah nice and consistant
Did you notice today's close? Nothing consistant about playing this thing. Sometimes moves up on fake earnings and sometimes doesn't. Almost never is it a quick move from whatever the bottom is to a 50% gain and its almost never a 50% gain from the absolute bottom to the absolute top anyway even if you catch both and don't tank it trying to sell out. And NO I've never been stuck here. Apparently you don't read the various ibin message boards over the years. I made plenty here before finally realizing what was really going on. Glad you have too. Either way GLTY. Hope you traded it already because it doesn't look like they got many buyers interested this time. Hopefully for those here, they'll put out another projection PR to get the volume back moving so folks can unload. JMHO
I never called the trades over the last 2 years, bouncing off of the $1.20 - $1.30's to .50+ higher, “big time trading”, I called it “consistent”. I also don’t think waiting 2-3 months for 50% plus gains is that bad either – I understand the frustration if you bought in at high levels or have just sat back and held this stock – but if you have been trading it, this stock has been a great resource over the last few years - Especially the two significant double runs (not including the run last year from $1.30 to $2.30). As far as being left “holding the bag”, it is that type of thinking that gets those shares sold to me in the $1.20’s every time….
master
The reason it goes to 1.30 so often is that management is happy to sell your shares at that price to pay their own salaries. If you call small moves that you have to wait quite a while for on absolutely horrendous volume, big time trading...be my guest, and be careful to not get caught holding the bag on the way down.
I agree - you listen too much to these guys and you would have missed this cash cow - this stock, over the past two years, has consistently bounced off $1.20 (post-split) for significant trading gains...
now invest
Just making sure folks understand what they are buying. It's one thing to buy below 1.40, quite another after a run of course. GLTY
Nah... a repeat customer... had a nice trade
last year on this... expect to do it again.... may take a little longer.. but not a lot of cash ... just going for a run... OH>.. but one of these runs IMHO... will be a breakout... maybe soon... maybe not... but.. I think they are building a base here...
So... we will see....
...and a new generation is born thanks to yahoo finance dd'ers lol.
Hey... earnings look good to me...
i am in....
I want in on the action!! Gary did you get my emails? I did not sell ibin becasue if it goes up a few more pennies I'm out.
No problem Gary
Look me up when you get caught up. I wouldn't mind seeing what you're into right now. Take care.
I remember vividly your call on FRPT when it was trading at about $1.97. What a tremendous return you got on that one!
Congratulations on the tournament win, it's about time. Interestingly enough after a 20 year sabbatical from fishin' I went out on my "pond" with a couple of buddies this past summer and bagged a cooler full. It took me about a nanosecond to get back into the swing of things although I much prefer motoring off to someplace distant from other boaters and laying back and enjoying the sun.
I have a lot of stuff on my plate right now so haven't much time to post. Will catch up with you on Investorvillage sometime in the next week or so and we can compare notes.
Great to hear from you!
Well I be dog,
Good to hear from you. I hope I carried the torch well lol. You were of course 100% right. I've read back over those posts a dozen times. I was honestly afraid something had happened to you (health related maybe) so I'm glad to hear you are still around. Learned alot my friend believe me. Even trying the old double my money every year method and thanks to frpt was able to get a couple years out of way all at once. I might have been wrong on ibin (although made a bunch of money) but called my ex favorite military stock pretty well. You know you were right about my boat problem 2 years ago as well. Ended up being the gas $250 later lol. Even won my first saltwater tournament last year as well. I can be reached on the investorvillage.com boards by private message at the voic message board if you click on my post. As I say, good to hear from you and appreciate the "lessons". Take care.
"When you got the recommendations from Gary about how bad this company was, it was trading in the $1.20s. Today it just traded at $1.75. I hope you didn't take the advice."
Name one credible piece of info ever put out by IBIN. You own shares in a stock scam...period.
Rivers is nothing more than a sinister little fraud who has stolen investors money using material misrepresentation and outright fraud.
I have followed this company since day one and have probably the most extensive knowledge of anyone on the net how this scam has been perpetrated and how Rivers made fools of those who believed the BS he published.
I ask you to personally show any proof whatsoever that any contract claimed by Rivers is legitimate. I ask you to find the name of one individual any where in the world who has signed such a contract or made a single payment.
Have fun!
Hi Runncoach:
I haven't posted for a while on the other board, if you get my drift!
I am certain that we have spoken there frequently in the past when I emphatically stated that Rivers was a crook and IGII/IBIN was virtually worthless.
I know it took a lot of arm twisting on my part to convince you before you saw the light.
I remember our discussions on boats too!
The reason I haven't posted "over there" is that it was taking up too much of my time. I believe I accomplished what I set out to do even though it took a couple of years.
Great to see you again.
Let's find somewhere to chat one of these days!
You asked if you should sell your shares. When you got the recommendations from Gary about how bad this company was, it was trading in the $1.20s. Today it just traded at $1.75. I hope you didn't take the advice.
buttress
I wouldn't consider him "stand up" in any way shape or form. He showed up to pump his own shares IMO. Pretty nice criminal record as well unfortunately but I helped save folks a mint over there the past couple year. Lot of crooks in that one.
Runncoach saw you on the VOIP list to. How about that crook!! Lewis seems like a stand up guy though. He showed his face at least....
I live in Avalon NJ. Used to be a commercial fisherman. Now I'm a Realtor. Same thing quiet in the winter hectic in summer.
buttress
Same old down here. I live on the beach so its kind of boring in the winter months. Just waiting for the spring fishing to start up in another month or so and the markets too lol.
Runncoach. Hows NC? I love wilmington used to live in OBX
Gary
You wouldn't by chance be related to Tradeshappen would you?
FWIW I agree with 100% of the posts you have made on the ihub board. I hardly ever check it and find it funny that whenever I post on a message board about ibin, folks just move on to another board instead of answering my questions. I used to give these guys the benefit of the doubt and made alot of money trading it around earnings (fake or not) reports before coming to the same conclusions you have based on my own dd and dd of the "famous" poster tradeshappens on the RB boards. Those restatements were massive, especially considering these guys offer a "sox" solution lol. Of course not a single secure blue program has ever been sold that I can find either. GLTY and nice info you have provided here IMO. I imagine the management had a good time over in Paris last week at shareholder expense and looks like little chance of moving to the amex this year as was pumped last spring either. JMHO
I believe absolutely no statements made by Rivers. I have shown in previous posts where he founded the company on outright fraud and deception.
If you read the prior press release concerning so called forward earnings estimates, not a single one I can think of has even come close. He has basicaly kept the company alive by selling stock to uninformed investors.
I find virtually nothing of value in IBIN and believe it is operated now as fruadulently as the day it was founded.
If you take a look at your own statements regarding payments expected within 9 months to a year, you will see that these payments have not been made on a schedule even approaching such timelines. Rivers conned investors in January of 2004 by announcing that he expected earnings of $.58 per share on $19,000,00 in sales for 2004. Instead, the company suffered massive losses and horrendous dilution, dilution that was happening in the same time frame as the announcement. Using the delayed payemnts excuse IMO is nothing more than a stall tactic to suck uninformed investors into buying virtually worthless stock in a company that has proven to have absolutely no crediblity.
I also have a real good idea of how those deferred revenues arrived on the books and how Rivers might ultimately benefit personally from them through a 3rd party overseas while they will be no benefit to investors at all. Afterall, Rivers and his colleagues have reaped million and millions of dollars while the stock price has depreciated from a high of $1.70 pre-split to a price of $1.25 after a 10-1 reverse split. Nice going IBIN.
If you truly believe that this company has any value whatsoever throw your money at it like 1000's of other fools who have no clue as to how to read filings in depth, nor understand that Rivers is little more than a despicable little con man who is a lot smarter than most when it comes to creating schemes of deception.
I'm not trying to defend the company here, but there are many big name reputable firms that restate prior earnings all the time. It is not because of fraud, but because of different interpretations of accounting standards. In the filings that the company has made, they have not admitted to fraud or even been accussed of fraud, but in improperly recognizing revenue or in layman's terms recognizing revenue to soon.
Debt and Liabilities are two very different things and shouldn't be used synonymously. In their case, their liabilities are made up of deferred revenue, money accrued to pay taxes, and bills payable. None of these are debt as is in money borrowed in a loan.
My understanding of deferred revenue is money that has been billed to the customer, but not recognized as revenue yet. If it is money already collected as you say, then that is more money collected than the $2.9 million that you have claimed.
While I do agree that the collectability of the contract amounts is definitely the big issue with this company, and is the reason for their low p/e, I find that your facts are not accurate either. It does come down to credibility of the expected revenue. In the last filing the following statement was made
"Factors for Government or Quasi-Government Agency Customers
Most of our current customers are government or quasi-government agencies and are considered a low collection risk and irrevocable due to the budgetary nature of governments. However, due to the “slow pay” nature of these entities, payments could take as long as 12 months to be brought current, although management expects to reduce that time to no more than 9 months. As more fully discussed in SOP 97-2, the fees are determined to be fixed and determinable because;
· our software is not subject to obsolescence, any more than is typical for comparable software and we have not made concessions to effect collections,
· our software is integral to the fundamental mission of our master and their satellite license customers,
· our contracts are long term, greater then 12 months, and collections on invoices are expected to be less than 12 months,
· our contracts provide for normal collection terms which are substantially less than the term of our agreements and further permit the assessment of late fees and interest on delinquent balances,
· our contracts are with government entities, and by law, these entities are precluded from not disbursing funds that have been approved and allocated for the license agreement,
· our contracts do not include any Fiscal Funding Clauses,
· our contracts do not include any Rights of Return or Cancellation Clauses, and
· payment is not dependant on the number of SME’s engaged."
If you believe these statements, then the company is tremendously undervalued. If you don't, then it could be worthless.
"I don't see any debt on their balance sheet,"
Hmmm...you better double check the "liabilities" section on page 6 of the 11/16/2007 10Q for the period ending September 30, 2007.
Total current liabilities...$10,272,538. Please note that the bulk of this is $7,726,561 in deferred revenue. "Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, a software company sells and receives payment for a computer program before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.
Now in the case of IBIN I would suspect that almost 100% of the revenue is at risk. Why, simply because the company collects little if any revenue from the sales of products.
If you looked at an earlier post of mine you will note that IBIN/IBSG/IGII has collected only a small fraction of revenue since inception. Its main source of income has been through the sale of stock. How do you think the company ran up $23,000,000+ of accounts receivable on a total of $25,900,000 in sales since inception.
"their cash level from 6/30/07 to 9/30/07 went from $3,122,319 to $3,281,388. If you go back to 3/31/07 their cash level was $705,881, which is a total increase of $2.58MM."
That's the sad part of the equation. Why, because if you carefully read the same filing you will find a little item near the bottom of page 8 entitled: "Common stock issued for cash" in the amount of $2,805,513.
So, if their total increase in cash reserves went from $705,881 on 3/31 to $3,281,388 in 9/30 it was due to the fact that they sold $2,805,513 worth of stock in that interim. So in essence, the company actually burned through an additional $230,006 above and beyond any supposed income.
That's a pretty sad state of affairs, isn't it? Imagine yourself being in business for 4+ years and collecting only about 12% of your gross sales in that time period. If IBIN was a legitimate company, the carrying costs on the interest alone on $23MM would exceed the actual amount of money collected ($2.9MM) in a four year period.
Technically speaking, IMO it may be possible that IBIN/IBSG/IGII has collected much less than the $2.9MM I have attributed to it as I haven't kept up with current filings for several years and have not had a chance to view them all.
The one thing I can point out is that I was the first to discover the fraud perpetrated on investors by Rivers. I make no bones about calling it fraud either. You can quote me on that. I had it figured out over a year before Rivers admitted to it in a 2005 SEC filing.
The predecessor company that Rivers touted back in 2004 as having been in business for 7 years and had income (if I recall correctly) of about $5MM in 2003 was actually nothing more than a shell company set up in early 2003 and had virtually no income whatsoever.
I challenge you to find any licensee, anywhere on the planet who has paid Rivers one red cent for his program, much less owe $23,000,000 for its use.
I challenge you to come up with one material contract signed between IGII/IBSG/IBIN and a licensee that requires said company to pay the usage fees touted by Rivers in PR and SEC filings.
Have fun!
I don't see any debt on their balance sheet, and their cash level from 6/30/07 to 9/30/07 went from $3,122,319 to $3,281,388. If you go back to 3/31/07 their cash level was $705,881, which is a total increase of $2.58MM.
What numbers are you looking at?
Buttress,
The first thing for you to learn is that most of the stuff you will see posted on forums like this is crap. Anyone can post anything they want to. They don't need to prove anything. So, those that are long can post false positive items, and those that are short a company (they want it to go down) can post false negatives.
Check the news items on any financial website, and you can get complete financials. Or you can go to Edgar. Here is the link for IBIN http://www.sec.gov/cgi-bin/browse-edgar?company=ibsg&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany.
OT: Check your email.
You are also very very knowledgable. I know nothing and I more than appreciate you taking the time to "teach" me. Would you email me directly so I can ask a few other private questions? buttress77@hotmail.com....that is if you have the time.
What baffles me is how you get this information. I search on the internet and find nothing. is there a specific website you use? Are you calling the CFO?
Here is some fun math for you:
This is the reported income (rounded) for IBIN since inception as I found in the filings:
2004 $3.3MM
2005 $4.9MM
2006 $7.6MM
First 3 Quarters 2007 $10.1MM
Total Approximately $25.9MM
Accounts recivable are $23MM
Or a difference of $2.9MM.
In other words it appears that if my math is correct IBIN has only taken in about $2.9MM since inception and the balance of receivables outstanding is $23MM while debt is in the range of $10MM.
This leads to the question: "Why can't IBIN collect its accounts receivables?"...and how is IBIN going to survive?
Here is the important answer. I don't really believe Rivers cares if IBIN survives or not. He and his cronies have bilked the company and investors for mega millions of dollars already. It appears to me their intent is to squeeze every last drop they can out of investors by using materially misleading statements and deception.
If you want to have some more fun, take a look at the filings and look for the prepaid expenses to see what I consider one of the biggest rip offs of all.
Todays laugh from IBIN:
"I reiterate what I said in our November conference call regarding our expected revenues and EPS. At that time I said that we anticipate revenue for 2007 approximating $18 million, and our EPS for the year should be in the range of $0.50 to $0.75 per fully diluted share."
Yet, with all this money supposedly coming in IBIN is showing about $23MM in accounts receivables. These receivables have been in an upward trend since the company started.
What is even funnier is a look at the last 10-Q where the company states that it now has cash on hand of $3.2MM and increase of $2.3MM over the previous filing. However, a close look at the financials will show that $2.8MM of this cash came from the issuance of new stock. In other words, it appears the company burned off another $600K during the quarter.
If you look at the previous 10-Q issued in August you will note that receivable outstanding were $19,941,000. The company then claimed income of $3,200.000 in the November 10-Q and accounts receivables of $23,014,000.
In essence what that seems to show is that the company actually took in only about $137,000 during the entire quarter while spending $2,390,000 on operating expenses.
When you look at the operating expenses they are a joke. Here is how they pan out:
Stock Based Compensation (To Who??) $805,000
Professional Fees (To Who??) $207,000
Salary (To Who??) $261,000
Genral Expenses (To Who??) $1,109,000
If one is unable to answer the question (to who??) one might want to consider that management is taking a great deal of money for themselves.
Unfortunately for the uninformed the EPS looks good at $.10 per share. Yet, IBIN has continually increased its accounts receivables since inception and has actually taken in very, very, little cash.
How much are those accounts receivable actually worth and how much of them are actually collectible? IMO, very, very, little.
How do I know this? If you read through the 2004 filings very carefully you will find the answer hidden away in a single sentence. It has to do with the way the company books it revenues.
When I first spotted this some 3 1/2 years ago I was apalled. I knew then that IBSG/IBIN was little more than smoke and mirrors.
As far as I am concerned the company is one of the biggest rip offs that I have ever come across. I consider it a complete fraud.
OT: Listen up! There are literally hundreds of ways to invest and different venues people use to learn. I would bet that if you took a survey of people on IH you would find that most learned from the school of "hard knocks".
Every single person who has invested has made mistakes one time or another, some to the extent they wiped themselves out entirely. It is the nature of trading.
I have changed my trading style many times in my 40+ years of being involved in the markets. Sometimes I get frustrated when things aren't going my way and will sell out my entire portfolio, change my approach, and then in essence start over.
Probably the most important aspect of "learning" trading is to do good Due Diligence. The hard part about that approach is learning how to interpret SEC filings, understand the financial structure contained in those filings, and last but most importantly learn how to read through all the BS put out in press releases. If you keep in mind that the main reason for a company to release PR is to entice you to buy stock, then ask yourself why they are doing so.
Most public companies and likely more than 99% of pink sheet and OTC companies are set up for the benefit of management. IOW, if you as an investor make money that is much less important to the company than they themselves stealing your hard earned cash.
Take every news release you read, conference call you listen to, and positive posts on chat boards with a grain of salt.
When you view a press release, always look for things that are unstated in the release, rather than the obvious which is stated.
A simple example would be XYZ company telling you its earnings increased by a $1,000,000 year over year. What they likely won't say is that despite this earnings increase, they still lost $5,000,000 overall. More to the point though, the more news you read, the more mistakes you make in investing, the more you will learn what I am talking about.
I can state emphatically that you will rarely find a "slam dunk" type stock that can make you a huge amount of money unless you really work hard on your own to find undiscovered stocks and be one of the first, if not the first to buy in.
To do so takes an extraordinary amount of time and effort, a quick mind to comprehend what you just found, and a comprehensive understanding of SEC filings. Once you have mastered the above, you will become a better trader.
One last point you should understand is that "pigs get fat and hogs get slaughtered". IOW, rarely will you make the ultimate trade of buying at the very bottom and selling at the top. You must learn to take profits (if possible) as a stock rises and if a trade goes against you, not to be "married" to that stock, but to sell it and eat your losses before they consume your entire investment.
As part of your DD, it is important that you get in touch with management of the company you are investing in. After making numerous phone calls you will learn not only how to ask questions, or which questions to ask, but also how to decipher BS answers you get from the "real thing". If the CEO brushes off your tough questions or hedges on the answers it should be a big "red flag".
If you can't contact that person by phone try an email. If you get no response whatsoever, take your money and run.
Below is a email I wrote to a CEO yesterday from a company that I "found" some 3 years ago. I have flipped it once or twice during that time for profit margins of 500% (5 bagger) and 150% (1.5 bagger). This company was basically dormant for 6 years before producing a single SEC filing which I happened to catch. The filing in and of itself was very bland and stated virtually nothing of value for the investor. However, it did pique my curiosity and I did call management. The answers I got to my questions were not only astonishingly positive, but I also learned why the company had stopped its filings and the complete history of the company from the CEO. When I found out the share structure I decided that I would attempt to buy out as much of the float as possible without driving up the price beyond a certain level. When it reached that level, I quit buying and waited for others to discover the stock. At its peak, it increased by 1000% before falling back.
Here is the letter I sent and the CEO reply. Only the pertinent information is missing as this is "my" stock and I intend to profit from it in the future. Afterall, I "worked" on it for several years.
My inquiry:
Dear Mr. xxxx:
Thank you for taking the time to read this email. I have followed your company with interest for several years and have owned XYZ stock for several years.
Recently you announced that XYZ would be bringing SEC filings current. I understand that this is a long and complicated process but am wondering what type of time frame we are looking at.
I also realize that an exact date may be hard to establish at this time. However, I am wondering if it is possible for you to provide a rough estimate for their completion and publication.
Thank you for your time.
His reply:
Hi XXX:
Thank you for your interest. As you rightly pointed out that the process is long, complicated and expensive. The other factor is that the SEC upon review may have comments which may require additional work and iterations. Our goal is get this done this year and if we are lucky, perhaps the first half of 2008.
We are no doubt excited about XYZ and our future prospects and would like to offer a complete disclosure of the activities so that we can encourage broader participation in the company’s investor base.
Thank you again.
Best Regards,
Mr. ZZZ
So what do I know now that others don't. First off, I already know the float and outstanding shares from a previous phone call. I know why they didn't file for the past 8 years. I know a tremendous amount about their client base, products they produce, and the market for their product from years of DD. I know the company has tremendous credibility as the CEO has always been straight forward with me and went as far as providing me with the names of clients and verifiable contacts at the clients offices. I am also aware of the structure of insider holdings which are over 90% of the tiny outstanding. I also am aware that the company is still working on producing updated filings that IMO should be stellar.
In essence, I have a heads-up play on this stock that I doubt even one in 10,000,000 or more investors have ever heard of.
If the filings are even half as good as my expectations I expect it to skyrocket in a period of days as word gets out.
If the filings are not as expected, I have wasted 10 or 20 hours of my time on DD. Big deal. I have already been compensated well for my efforts.
The one thing you must remember is that I spend hours and hours pouring over SEC filings as they are published every day looking for that 1 in a million stock. Of course along the way I find others of interest and invest in them also although I am pretty much a loner by nature and rarely invest in other peoples picks unless I can find hidden value.
I also have a large portfolio of buyout stocks that are basically as close to a "slam dunk" as you can get, even if they aren't held for the entire duration. I find these using another method and only have to spend a couple of minutes a day working on 'em. They have payouts that average between 10% and 30% profit margins for long term holds of between a month and a year. They do a nice job of paying my bills.
Hope I haven't bored you with the above essay. Please remember that "luck" does play a role in making money in the markets, but DD will always trump "luck" when it comes to minimizing losses and maximizing gains.
Good Luck
Wow!! I'm glad I found you. Are you a financial analyst? I did mean SEC my bad. I have to admit I am new to investing and am trying to learn how to find undervalued stocks and thought I had. I guess I really need to learn more!! Any suggestions on good DVDS that teach it or Books?
I forgot to mention that about the time the material in this PR came out..
"Yet, in January 2004 while Rivers was pedaling stock under the assumption by uninformed investors that a merger had already taken place between IGII and IBSG the company produced a PR stating they expected earnings of about $.58/share and revenues of about $19,000,000."
...Rivers was already diluting the share value by selling stock through private subscription agreements at prices that were substantially less than market price that were not reported in SEC filings until a later date. Included in the subscription agreement was a clause that if IGII/IBSG dropped below a certain dollar value between two dates that additional shares would be issued to make the value whole to a sum of I believe $1 per share or some such consideration.
Basically as I saw it, based on the knowledge I had, investors would of likely lost a goodly portion of their "investment".
On 4/14/2005 in a 10K IBSG reported the following:
"The issuer’s revenues for the fiscal year ended December 31, 2004 were $3,295,014."
Yet, in January 2004 while Rivers was pedaling stock under the assumption by uninformed investors that a merger had already taken place between IGII and IBSG the company produced a PR stating they expected earnings of about $.58/share and revenues of about $19,000,000.
Yet in the same filing it states:
"Our net loss cumulative operating losses through December 31, 2004 were $2,935,461."
Big difference, eh? If you want to have some real fun try and figure out if the $3,295,014 were ever collected. I would be willing to bet you can't...and undoubtedly Rivers would have a difficult time also.
If one was curious enough, as I was, to dissect the PR's and SEC filings it was evident in January 2004, before the merger that IGII would never obtain gross sales of $19,000,000 based on the contracts they stated they had, most of which IMO were fabricated in the first place.
Anything else you want to know?
"Why has there been no action by the FCC?" Actually, as another poster pointed out it is the SEC. I believe that if you read the highlighted portion of the following filing you can bet that this wasn't put out by IGII just for funsies. This shows the completely fraudulent nature of the company.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2004
IBSG INTERNATIONAL, INC.
(Exact name of registrant as specified in this charter)
Florida 0-029587 65-0705328
(State or other jurisdiction
of incorporation) (Commission
File Number) (IRS Employer
Identification No.)
1132 Celebration Blvd., Celebration, FL 34747
(Address and Zip Code of Principal Executive Offices)
Issuer's Telephone Number: (321) 939-6321
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
On February 13, 2004 IBSG International, Inc. (the "Company") issued a press release and filed a Current Report on Form 8-K announcing the acquisition of its subsidiary, Intelligent Business Systems Group, Inc. In such press release and Form 8-K the Company stated that Intelligent Business Systems Group, Inc. "...commenced business in 1997, and is now in its sixth straight year of profitable operations..." The Company has determined that this statement did not correctly report historic facts concerning its Intelligent Business Systems Group, Inc. subsidiary and is filing this amendment to its Current Report on Form 8-K filed on February 13, 2004 to correct such statement. Intelligent Business Systems Group, Inc. was incorporated on January 9, 2003. Audited financial statements of Intelligent Business Systems Group, Inc. as of December 31, 2003 have been filed with the Company's Form 8-K/A filed October 21, 2004. Intelligent Business Systems Group, Inc. reported a net loss of $376,848 for the period from Inception (January 9, 2003) through December 31, 2003.
Such incorrect statement was made based on the operating history of another company which marketed technology which was marketed by Intelligent Business Systems Group, Inc. in 2003.
Now, if you look at the historical perspective of IGII as noted in early PR's from IBSG Rivers claimed that not only was the prior company in business since 1997 but that it had substantail earnings.
Can you say FRAUD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Rivers talked about moving to the Naz in the first CC he held in October 2003. He had what appeared to be a shill asking him leading questions to attempt to enhance the value of the company.
Shortly afterwards he started selling stock in the company IGII as if a merger had already taken place, which did not actually occur until several months later.
I was aware of the bait and switch tactics used by Rivers and made them public over a year in advance of others understanding what had happened. At the time I discovered this the stock was trading at its all time high pre-split at $1.70 share. I was holding about 40K shares at the time and had started buying in the sub $1 range and averaged up. Luckily, I and many friends I informed of Rivers scam tactics managed to get out at about even.
I suggest strongly that you read every post at the URL I gave you. The company was founded on fraud and has continually mislead investors who have not carefully read every press release, SEC filing, and other drivel put out by IBIN.
Inherently, Rivers has raped investors for millions and millions of dollars through the use of material misrepresentation and deception.
The last poster who stated that this new accounting firm was going to help is full of BS. I challenge him to show me what happened to the almost $12 million in accounts receivables that IBSG claimed they were due in the period from inception through January 2006 or for that matter any other money supposedly earned by the company. I challenge that poster to provide verifiable evidence from any single licensee of the product that they have ever paid a dime to IBIN. I challenge him to locate how many of the 15 million shares held in his wifes trust accountt slowly made their way into the market place without producing a SEC filing in her name. (I know.)
If those questions remain unansered to him, he doesn't know diddly about the inner workings of the IBIN stock scam.
If this is the best investment you can find in the market place you surely will lose most if not all of your money.
Here is an exact copy of an email that was received from a person inside IGII/IBIN when an inquiry was made regarding a private placement in 2004:
"You should be carefull where you throw your money.
This man is an acoplished liar.
Dig deeper."
I think you mean SEC not FCC. Anyhow they have a new, respectable accounting firm. So, if there is going to be a big blow up, it should come soon. Awhile ago they changed their accounting method to not show as earnings accounts receivable, but only show earnings on money actually received. If they can get past the mistrust and demonstrate the earnings are real, they are worth a lot more than what they are trading at right now.
What about the talk on this board that they are moving to the Nasdaq? Are you telling me that their earnings are fake? Why has there been no action by the FCC?
I have followed this stock since the first CC in November 2003, before it was IGII, and before it was IBIN. If you read through the posts on the board I mentioned, you will see that the company has outright lied, fraudulently promoted its ownership of another company, and materially misrepresented its earnings. In fact, in a SEC filing in about April 2004 the company admitted it lied to investors.
The earnings are a joke. The company has built up tremendous amounts of accounts receivables that I highly doubt will ever get paid to them.
If you look at a recent SEC filing you will note that they revised their earnings downward for I believe 2005 and 2006. IOW they published what appear to be false earnings.
I have spoken to the Rivers (CEO) personally and can tell you that my impression was he is a crook.
IBIN is absolute garbage, as is the scum management. My personal opinion is that it is virtually worthless as it seems any and all income coming into the company by one means or another ends up in the pocket of Rivers, his friends, associates, and family.
It is a terrible investment.
So it's a dog? Should I sell it in your opinion? Do they not have earnings as they claim?
"Good company."
You best go back to the origins of this company and start reading the filings.
This company has done little more than rip off investors almost since its inception.
Rivers is an outright liar and con artist. Here is some interesting reading. I suggest that if you have any questions regarding the validity of the following post you read all the posts by "Tradeshappen" on RB.
"Once a thief always a thief:
Rivers Fraudulently Promoted This Stock From Day One:
In the first CC to investors Rivers failed to mention that IBSG, the company he was promoting, was not even a part of IGII at the time.
Rivers also failed to disclose in his first press release touting earnings of 58 cents per share IBITDA that IGII was still not IGII and was working on merging with it sometime in the future.
In fact, to complicate things a bit more, it appears that Rivers was actually making 2 individual sales before the merger. Subscribers to the offering were actually buying IBSG (whose shares were later merged with IGII), while people buying the stock of IGII were buying virtually a worthless shell that had little or no assets thinking that IBSG/IGII merger had already been completed.
Of course, no disclosure of this shell game was ever made to investors who thought they were already buying the perceived earnings of IGII which was virtually a worthless shell had the merger fallen through.
It makes one wonder
While Rivers was promoting earnings for IGII, he failed to disclose that he was intentionally diluting the shares OSmassively (if/when the merger closed) by selling shares privately to investors under guise of the ownership of IBSG by IGII.
What that basically comes down to is he was promoting earnings for IGII based on IBSG, a company that was not owned by IGII at the time of the promotion.
The fact is, you can't sell something you don't own. Ask any cop if you don't understand the concept.
During the time he was selling these "extra" shares he was also releasing news of new accounts that would add to the already fictionalized earnings of 58 cents per share for a company who at the time had little or no assets.
All one now has to do is look at the earnings for the first 3 quarters of 2004 which show to date a massive loss as compared to the 58 cents per share earnings he predicted.
Had he not issued more shares during early 2004 the negative earnings would have been even been worse.
In other words, Rivers materially misrepresented many facets of IGII including his ownership of said company and its perceived earnings.
He also early on failed to disclose that his wife was the owner of the program used by IGII, (or whom the ownership was transferred to somewhere along the line) although investors actually thought that IGII bought IBSG and owned the rights to the companies products and services as the program itself is what made IBSG successful.
So in the end, Rivers committed fraud by not disclosing his non-ownership of IGII at the time of both the CC and the first press releases, by issuing shares to dilute the OS while continuing to issue press releases touting huge earnings, by not getting anywhere near the earnings he forecast, and not dislosing that his wife, not IGII was the owner of the software.
Below is the defiiniton of FRAUD.
1 a : DECEIT, TRICKERY; specifically : intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b : an act of deceiving or misrepresenting :
I have done my best to describe how I feel that fraud was perpetrated.
Would you care to dispute any of my above statements?"
//ragingbull.quote.com/mboard/boards.cgi?board=IBIN&read=161
I don't know when they will get on the NASDAQ, but they did move up from pink to bulletin board.
is there any news on when this stock will make it on an exchange as was expected this past summer ??
IBIN PR eps .10 3RD. QTR. .43 for 9 Months!!!
http://biz.yahoo.com/bw/071116/20071116005427.html?.v=2
CORRECTING and REPLACING IBSG International Announces Financial Results for Third Quarter and Nine Months 2007
Friday November 16, 12:59 pm ET
2007 Projections Reaffirmed: Revenue Approximately $18 Million, Gross Profits $11-15 Million
Revenue in Third Quarter Rises 42.5% Year-over-Year
EPS is $0.10 in Third Quarter, $0.43 for Nine Months
Company to Hold Conference Call Today at 12 p.m. Eastern
CELEBRATION, Fla.--(BUSINESS WIRE)--Third headline should read: EPS is $0.10 in third quarter, $0.43 for nine months (sted: EPS is $0.04 in third quarter, $0.43 for nine months).
The corrected release reads:
ADVERTISEMENT
IBSG INTERNATIONAL ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER AND NINE MONTHS 2007
2007 Projections Reaffirmed: Revenue Approximately $18 Million, Gross Profits $11-15 Million
Revenue in Third Quarter Rises 42.5% Year-over-Year
EPS is $0.10 in Third Quarter, $0.43 for Nine Months
Company to Hold Conference Call Today at 12 p.m. Eastern
IBSG International, Inc., (the “Company”), (OTC BB: IBIN - News) announced today its financial results for the third quarter and nine months ended September 30, 2007.
For third quarter 2007, recognized revenues were approximately $4.0 million, a 43.65% increase over the $2.8 million in third quarter 2006. Gross profit of $3.90 million for the quarter ended September 30, 2007 was an increase of 44% over 2006’s second quarter result of $2.7 million. Net Income for third quarter 2007 was $820,000, or $0.10 per fully diluted share, compared to a net income in same period prior year of $885,000, or $0.13 per fully diluted share.
In third quarter 2007, operating expenses rose to $2.4 million from $1.8 million for the same period in 2006. This increase is a reflection of stock based compensation for the first three months of 2007. The company had other expenses for the three months ended September 30, 2007 of $689,000 compared to other expenses of $46,000 for the three months ended September 30, 2006. The increase in other expenses for 2007 was the accrual of additional taxes and in increase in the tax rate from 37% to 41%.
The balance sheet shows the Company had $3.3 million in cash as of September 30, 2007, and the current figure is the healthiest the Company has had during this fiscal year. Accounts receivable grew to $23.0 million from approximately $19 million at the end of second quarter 2007. Deferred revenue stood at $7.7 million as of September 30, 2007.
Dr. Michael Rivers, CEO of IBSGI, said, “Our revenues increased in this quarter because the values of the contracts we are signing are higher than before, and we expect that there will be substantial increases related to revenue in our existing contracts in the coming months. As we have previously stated, with the size of the additional projects and the roll up of appropriate deferred revenue to revenue, the cash collections are still being out paced by revenue growth, and we expect that to continue for a time. We expect to make changes in our accounting of receivables in fiscal 2008, and the deferred revenue of $2.7 million that we have reported is a foreshadowing of what we anticipate the future accounting to be.
“I would stress that of the $23 million currently in accounts receivable, $19.4 million is representative of two existing contracts with national governments that continue to expand. National Governments move more slowly in paying their bills than other customers might, but government contracts continue to be the most secure contracts worldwide and generally irrevocable by law. We anticipate no difficulty in collecting what is, in practical if not legal terms, this backlog from them.
“We are seeing continued growth both inside the US and outside. Acceptance of our platform is showing particular strength in Africa, and our sales efforts in Europe continue to be promising. In the nine months to September 30, 2007, our recognized revenue was rising at a rate of 34.55% while our operating expenses rose at just 17.4%, and we believe that this healthy divergence will persist into 2008.”
He concluded, “We believe that the fourth quarter of 2007 will meet or exceed the results from both fourth quarter 2006 and this quarter. We anticipate revenue for 2007 approximating $18 million, and our EPS for the year should be in the range of $0.50 to $0.75 per fully diluted share.”
NINE MONTH RESULTS
Revenue was $10.2 million in the first nine months of 2007 up from $4.9 million for the first nine months of 2006. Gross profit was $9.8 million for the nine months to September 30, 2007, approximately $5.2 million higher than the $4.6 million reported for the nine months ended September 30, 2006. The company net income for the first nine months of 2007 of $3.35 million, or $0.43 per fully diluted share, as compared to $73,000, or $0.01 per fully diluted share, for the same period prior year.
Management of IBSG International will host a conference call at 12 p.m. EST, .Friday November 16, 2007, to discuss the company’s financial results and achievements. Those who wish to participate in the conference call may telephone (888) 682-6100 from the US or (201) 499-0416 for international callers. No PIN number is necessary for the live call but, you must provide the operator with your company name. To access the digital replay, dial 888-346-3949, from the U.S. or, 404-260-5385 for international callers. When prompted, enter pin code 111511, at the second prompt enter choice 4, and at the final prompt enter confirmation code 20071113171617. This playback will be available for 90 days.
About IBSG International, Inc.
IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and IBSGI - UK, a consultant company focused on development of IT projects for Governmental bodies and multinational corporations.
IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro©.
Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.
As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis.
IBS Development, Inc. will provide ongoing support of International’s other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.
IBSGI - UK establishes IT projects for various countries and multi-national corporations around the world. IBSGI - UK has already introduced the BizWorldPro platform to a number of countries and continues to provide demonstrations of the system on an international scale. For multinational corporations, the projects are normally recognized offset program qualified and provide a required contractual obligation of these corporations. IBSGI – UK maintains relationships with various multinational corporations and operates from centrally located offices in London.
* Management has determined that an allowance should be set aside due to the current and potential growth of its client bases. This allowance is not for set aside for any specific customer.
Safe Harbor Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies’ actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheet
(Unaudited)
CURRENT ASSETS September 30, 2007
Cash $ 3,281,388
Accounts receivable net of allowance for bad debt 23,014,831
Prepaid expenses 342,447
Total Current Assets 26,638,666
FURNITURE, FIXTURES AND SOFTWARE, NET 788,831
OTHER ASSETS
Account receivable - long term 1,802,324
Deposits 4,164
Other assets 234,900
Deferred consulting services 2,648,040
Total Other Assets 4,689,428
TOTAL ASSETS $ 32,116,925
CURRENT LIABILITIES September 30, 2007
Accounts payable and accrued expenses $ 776,065
Accrued tax provision 1,769,912
Deferred revenue 7,726,561
Total Current Liabilities 10,272,538
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock authorized 100,000,000 shares at $0.001 par value; 9,456,636 shares issued and outstanding
9,455
Additional paid-in capital 19,809,563
Retained Earnings 2,025,369
Total Stockholders’ Equity 21,844,387
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 32,116,925
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2007 2006 2007 2006
Sales $ 3,989,135 $ 2,776,811 $ 10,144,286 $ 4,819,086
Cost of Sales 89,093 68,042 267,279 204,129
Gross Profit 3,900,042 2,708,769 9,877,007 4,614,957
Operating Expenses
Amortization and Depreciation 6,792 8,829 21,611 28,647
Stock based compensation 805,698 595,292 1,515,840 1,243,213
Bonus - - - 25,000
Bad debt expense - - 286,000 -
Professional Fees 207,010 165,003 470,140 643,979
Salary Expense 261,315 - 735,810 -
General and Administrative 1,109,650 1,008,144 1,426,013 1,913,267
Total Operating Expenses 2,390,465 1,777,268 4,455,414 3,854,106
Income from Operations 1,509,577 931,501 5,421,593 760,851
Other Income (Expense)
Loss on debt settlement and warrants - - - (470,897)
Change in Fair Value of embedded options - - - (18,683)
Change in Fair Value of warrants - - - (61,181)
Liquidated damages expense - - - -
Interest Income 32,947 98,838
Tax Provision (722,195) (45,617) (2,166,585) (136,852)
- -
Total Other Income (Expense), net (689,248) (45,617) (2,067,747) (687,613)
Net Income $ 820,329 $ 885,884 $ 3,353,846 $ 73,238
Net Income Per Share Basic/Diluted $ 0.10 $ 0.13 $ 0.43 $ 0.01
Weighted average number of shares outstanding
during the period – Basic/Diluted
7,845,131 6,865,880 7,740,306 6,720,714
Contact:
Porter, Levay & Rose, Inc.
Michael Porter, President
212-564-4700
or
IBSG International, Inc.
321-939-6321
Source: IBSG International, Inc.
IBSG PR Nov. 16, 2007
IBSG International Announces Financial Results for Third Quarter and Nine Months 2007
Friday November 16, 11:08 am ET
2007 Projections Reaffirmed: Revenue Approximately $18 Million, Gross Profits $11-15 Million
Revenue in Third Quarter Rises 42.5% Year-over-Year
EPS is $0.04 in Third Quarter, $0.43 for Nine Months
Company to Hold Conference Call Today at 12 p.m. Eastern
CELEBRATION, Fla.--(BUSINESS WIRE)--IBSG International, Inc., (the “Company”), (OTC BB: IBIN - News) announced today its financial results for the third quarter and nine months ended September 30, 2007.
ADVERTISEMENT
For third quarter 2007, recognized revenues were approximately $4.0 million, a 43.65% increase over the $2.8 million in third quarter 2006. Gross profit of $3.90 million for the quarter ended September 30, 2007 was an increase of 44% over 2006’s second quarter result of $2.7 million. Net Income for third quarter 2007 was $820,000, or $0.10 per fully diluted share, compared to a net income in same period prior year of $885,000, or $0.13 per fully diluted share.
In third quarter 2007, operating expenses rose to $2.4 million from $1.8 million for the same period in 2006. This increase is a reflection of stock based compensation for the first three months of 2007. The company had other expenses for the three months ended September 30, 2007 of $689,000 compared to other expenses of $46,000 for the three months ended September 30, 2006. The increase in other expenses for 2007 was the accrual of additional taxes and in increase in the tax rate from 37% to 41%.
The balance sheet shows the Company had $3.3 million in cash as of September 30, 2007, and the current figure is the healthiest the Company has had during this fiscal year. Accounts receivable grew to $23.0 million from approximately $19 million at the end of second quarter 2007. Deferred revenue stood at $7.7 million as of September 30, 2007.
Dr. Michael Rivers, CEO of IBSGI, said, “Our revenues increased in this quarter because the values of the contracts we are signing are higher than before, and we expect that there will be substantial increases related to revenue in our existing contracts in the coming months. As we have previously stated, with the size of the additional projects and the roll up of appropriate deferred revenue to revenue, the cash collections are still being out paced by revenue growth, and we expect that to continue for a time. We expect to make changes in our accounting of receivables in fiscal 2008, and the deferred revenue of $2.7 million that we have reported is a foreshadowing of what we anticipate the future accounting to be.
“I would stress that of the $23 million currently in accounts receivable, $19.4 million is representative of two existing contracts with national governments that continue to expand. National Governments move more slowly in paying their bills than other customers might, but government contracts continue to be the most secure contracts worldwide and generally irrevocable by law. We anticipate no difficulty in collecting what is, in practical if not legal terms, this backlog from them.
“We are seeing continued growth both inside the US and outside. Acceptance of our platform is showing particular strength in Africa, and our sales efforts in Europe continue to be promising. In the nine months to September 30, 2007, our recognized revenue was rising at a rate of 34.55% while our operating expenses rose at just 17.4%, and we believe that this healthy divergence will persist into 2008.”
He concluded, “We believe that the fourth quarter of 2007 will meet or exceed the results from both fourth quarter 2006 and this quarter. We anticipate revenue for 2007 approximating $18 million, and our EPS for the year should be in the range of $0.50 to $0.75 per fully diluted share.”
NINE MONTH RESULTS
Revenue was $10.2 million in the first nine months of 2007 up from $4.9 million for the first nine months of 2006. Gross profit was $9.8 million for the nine months to September 30, 2007, approximately $5.2 million higher than the $4.6 million reported for the nine months ended September 30, 2006. The company net income for the first nine months of 2007 of $3.35 million, or $0.43 per fully diluted share, as compared to $73,000, or $0.01 per fully diluted share, for the same period prior year.
Management of IBSG International will host a conference call at 12 p.m. EST, .Friday November 16, 2007, to discuss the company’s financial results and achievements. Those who wish to participate in the conference call may telephone (888) 682-6100 from the US or (201) 499-0416 for international callers. No PIN number is necessary for the live call but, you must provide the operator with your company name. To access the digital replay, dial 888-346-3949, from the U.S. or, 404-260-5385 for international callers. When prompted, enter pin code 111511, at the second prompt enter choice 4, and at the final prompt enter confirmation code 20071113171617. This playback will be available for 90 days.
About IBSG International, Inc.
IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and IBSGI - UK, a consultant company focused on development of IT projects for Governmental bodies and multinational corporations.
IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro©.
Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.
As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis.
IBS Development, Inc. will provide ongoing support of International’s other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.
IBSGI - UK establishes IT projects for various countries and multi-national corporations around the world. IBSGI - UK has already introduced the BizWorldPro platform to a number of countries and continues to provide demonstrations of the system on an international scale. For multinational corporations, the projects are normally recognized offset program qualified and provide a required contractual obligation of these corporations. IBSGI – UK maintains relationships with various multinational corporations and operates from centrally located offices in London.
* Management has determined that an allowance should be set aside due to the current and potential growth of its client bases. This allowance is not for set aside for any specific customer.
Safe Harbor Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies’ actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheet
(Unaudited)
CURRENT ASSETS September 30, 2007
Cash $ 3,281,388
Accounts receivable net of allowance for bad debt 23,014,831
Prepaid expenses 342,447
Total Current Assets 26,638,666
FURNITURE, FIXTURES AND SOFTWARE, NET 788,831
OTHER ASSETS
Account receivable - long term 1,802,324
Deposits 4,164
Other assets 234,900
Deferred consulting services 2,648,040
Total Other Assets 4,689,428
TOTAL ASSETS $ 32,116,925
CURRENT LIABILITIES September 30, 2007
Accounts payable and accrued expenses $ 776,065
Accrued tax provision 1,769,912
Deferred revenue 7,726,561
Total Current Liabilities 10,272,538
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock authorized 100,000,000 shares at $0.001 par value; 9,456,636 shares issued and outstanding
9,455
Additional paid-in capital 19,809,563
Retained Earnings 2,025,369
Total Stockholders’ Equity 21,844,387
TOTAL LIABILTIES AND STOCKHOLDERS’ EQUITY $ 32,116,925
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2007 2006 2007 2006
Sales $ 3,989,135 $ 2,776,811 $ 10,144,286 $ 4,819,086
Cost of Sales 89,093 68,042 267,279 204,129
Gross Profit 3,900,042 2,708,769 9,877,007 4,614,957
Operating Expenses
Amortization and Depreciation 6,792 8,829 21,611 28,647
Stock based compensation 805,698 595,292 1,515,840 1,243,213
Bonus - - - 25,000
Bad debt expense - - 286,000 -
Professional Fees 207,010 165,003 470,140 643,979
Salary Expense 261,315 - 735,810 -
General and Administrative 1,109,650 1,008,144 1,426,013 1,913,267
Total Operating Expenses 2,390,465 1,777,268 4,455,414 3,854,106
Income from Operations 1,509,577 931,501 5,421,593 760,851
Other Income (Expense)
Loss on debt settlement and warrants - - - (470,897)
Change in Fair Value of embedded options - - - (18,683)
Change in Fair Value of warrants - - - (61,181)
Liquidated damages expense - - - -
Interest Income 32,947 98,838
Tax Provision (722,195) (45,617) (2,166,585) (136,852)
- -
Total Other Income (Expense), net (689,248) (45,617) (2,067,747) (687,613)
Net Income $ 820,329 $ 885,884 $ 3,353,846 $ 73,238
Net Income Per Share Basic/Diluted $ 0.10 $ 0.13 $ 0.43 $ 0.01
Weighted average number of shares outstanding
during the period – Basic/Diluted
7,845,131 6,865,880 7,740,306 6,720,714
Contact:
Porter, Levay & Rose, Inc.
Michael Porter, President
212-564-4700
or
IBSG International, Inc.
321-939-6321
utcheevis That new board has no moderator, it need some this boards information, are you interested?
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