Minim Inc (MINM)

[StockHighAlert-]

$MINM Full-year 2021 Financial Highlights:

Net revenue of $55.4 million, a 16% increase over 2020, as the industry experienced an estimated 10% decrease in modem and modem/router sales.1

Total deferred revenue as of December 31, 2021 was $736 thousand, a 100% increase from the previous year.

Gross margin of 31.6% compared to 28.4% in 2020, an improvement of 328 basis points.

Net loss of $3.6 million, inclusive of a non-recurring net gain of $4.0 million related to the sale of the Zoom® trademark, compared to a net loss of $3.9 million in 2020.

https://finance.yahoo.com/news/minim-reports-revenue-growth-16-113000627.html

[Denisnj]

Great company and great value at a ~ $55M market cap.

[End Game]

Here we go....$5 or bust!

[End Game]

Settled...

"On August 20, 2021 (the “Settlement Date”), Minim, Inc. (the “Company”) and Mr. Jeremy Hitchcock (the Company’s Chairman of the Board of Directors and, together with his spouse Elizabeth Hitchcock, who also is a director of the Company, the controlling stockholder) entered into a Settlement Agreement (the “Settlement Agreement”) with a stockholder of the Company who had made a demand to inspect certain of the Company’s books and records pursuant to Section 220 of the Delaware General Corporation Law to investigate the possibility of breaches of fiduciary duty by current and former members of the Board of Directors and the Company’s controlling stockholder in connection with his and his affiliates’ acquisition of majority control of the Company without compensating the Company’s minority stockholders and the acquisition by merger of Zoom Connectivity, Inc. in which he held a substantial equity stake. As part of the Settlement Agreement, the stockholder will release his claims relating to the subject matter of the demand and the Company will pay $225,000 for the legal expenses of the stockholder. Pursuant to the terms of the Settlement Agreement, the Company and Mr. Hitchcock agreed to comply with the following requirements until the earlier of (i) the fourth anniversary of the Settlement Date or (ii) such time as Mr. Hitchcock, Ms. Hitchcock and either of their controlled affiliates (together, the “Restricted Parties”) beneficially own less than 35.0% of the outstanding Common Stock of the Company (the “Restricted Period”):


(a) The Company shall maintain a board of directors comprised of a majority of directors who qualify as “independent” under the NASDAQ listing rules.


(b) The Restricted Parties agree not to acquire any additional shares of the Company’s stock for the first 18 months after execution of the Settlement Agreement (the “Initial 18-Month Period”); provided however that during the Initial 18-Month Period, (i) Mr. Hitchcock may receive ordinary course director compensation, including for special director roles such as chairman and head of committees (including the Company’s equity) and participate pro rata in any public equity offering conducted by the Company, and (ii) the obligations under this paragraph shall terminate on the first to occur of: (x) a tender offer is made to security holders of the Company by any person or group (other than any of the Restricted Parties) which, if successful, would result in such person or group owning or having the right to acquire securities with aggregate voting power of at least 20% of the then total voting power of the Company or debt securities constituting at least 20% of the then long-term funded indebtedness of the Company or any of its subsidiaries (without giving effect to any default on any such long-term funded indebtedness); (y) a petition of bankruptcy or for relief under any law relating to the relief of debtors, readjustment of indebtedness, reorganization, moratorium or extension shall be instituted under any law with respect to the Company; and (z) any governmental authority or any court at the instance thereof shall take possession of all or any substantial part of the property of, or a writ or order of attachment or garnishment shall be issued or made against all or any substantial part of the property of, the Company or any of its subsidiaries, and (iii) the obligations under this paragraph shall not apply in the event of a transaction approved in accordance with the following paragraph.


(c) For any proposed Rule 13E-3 transaction (i.e. a going-private transaction) that any of the Restricted Parties attempts to conduct following the Initial 18-Month Period, such transaction must be conditioned ab initio on the dual conditions described in Kahn v. M&F Worldwide Corp. (i.e., approval by an independent and disinterested special committee of the Company’s Board of Directors and a non-waivable fully-informed and uncoerced majority-of-the-minority vote of the Company’s unaffiliated stockholders).


(d) In any sale of the Company, the Restricted Parties are prohibited from seeking or obtaining consideration greater or different than the consideration provided to the Company’s other stockholders on a per-share basis; provided, however, that the foregoing shall not apply to reasonable consideration or compensation for non-competition, non-solicitation or similar covenants or for employment, consulting or similar services.


(e) Any material related-party transaction (i.e., a transaction in excess of $2 million) between the Company, on the one hand, and any of the Restricted Parties, on the other hand, must receive prior approval from a committee of disinterested and independent directors of the Company.

[End Game]

Hey man, what about it? You loading at this price? Earnings Monday morning.

[Bmrboy]

MINM going to continue to be a waiting game. You might see some spikes after press releases, but ultimately it's going to need to show continued growth for any kind of meaningful, sustained rally.

[swampboots]

MINM 2.43 after 3.02 on this news today (?):
"HSN, Home Depot, Lowes, Sam’s Club, and BJ’s Wholesale to Carry Motorola Home Networking Products "

[End Game]

The subscription money is going to flow soon.

“We’re pleased to report exceptional year-over-year growth,” said Gray Chynoweth, Chief Executive Officer of Minim. “This performance was driven by Minim’s acute focus on supply chain management and sales growth for our intelligent networking products. One of the quarter’s strongest highlights was our record sales on Amazon Prime Day, which totaled more than the last four years combined.”

“We believe the Amazon Prime Day category leader by units sold for DOCSIS 3.1 gateways was the Motorola MG8702 product,” Chynoweth continued. “This high-speed modem with a powerful AC3200 router and bundled mobile app gives homes an all-in-one package. In addition, we saw strong sales of the Motorola MH7020 expandable AC2200 Mesh System in retail. Robust sales of these software-driven, higher ASP products contributed to a 300% quarter over quarter increase in deferred revenue from software subscriptions.”

[End Game]

The subscription money is going to flow soon.

“We’re pleased to report exceptional year-over-year growth,” said Gray Chynoweth, Chief Executive Officer of Minim. “This performance was driven by Minim’s acute focus on supply chain management and sales growth for our intelligent networking products. One of the quarter’s strongest highlights was our record sales on Amazon Prime Day, which totaled more than the last four years combined.”

“We believe the Amazon Prime Day category leader by units sold for DOCSIS 3.1 gateways was the Motorola MG8702 product,” Chynoweth continued. “This high-speed modem with a powerful AC3200 router and bundled mobile app gives homes an all-in-one package. In addition, we saw strong sales of the Motorola MH7020 expandable AC2200 Mesh System in retail. Robust sales of these software-driven, higher ASP products contributed to a 300% quarter over quarter increase in deferred revenue from software subscriptions.”

[End Game]

inim Announces Strong Preliminary Second Quarter Financial Results
Minim
Mon, July 26, 2021, 4:05 PM
Launch of next-generation networking products fuels significant gross margin expansion

MANCHESTER, NH, July 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Minim, Inc. (NASDAQ: MINM), the creator of intelligent networking products under the globally-recognized Motorola brand, today announced certain preliminary financial results for the second quarter of 2021.

Preliminary Financial Highlights:

Accelerated Q2 2021 consolidated revenue growth rate of approximately 43% when compared to Q2 2020

Q2 2021 consolidated revenue of approximately $14.75 million, compared with $10.3 million in Q2 2020

Continued improvement in gross margin, with approximately 30% gross margin achieved in Q2 2021, up over 900 basis points compared to Q2 2020 gross margin

Q2 2021 consolidated net loss of approximately $1.5 million, comparable to a consolidated net loss of $1.5 million in Q2 2020

Deferred revenue in Q2 2021 increased by almost 300% quarter-over-quarter compared to Q1 2021, driven by evolving software subscription business model

“We’re pleased to report exceptional year-over-year growth,” said Gray Chynoweth, Chief Executive Officer of Minim. “This performance was driven by Minim’s acute focus on supply chain management and sales growth for our intelligent networking products. One of the quarter’s strongest highlights was our record sales on Amazon Prime Day, which totaled more than the last four years combined.”

“We believe the Amazon Prime Day category leader by units sold for DOCSIS 3.1 gateways was the Motorola MG8702 product,” Chynoweth continued. “This high-speed modem with a powerful AC3200 router and bundled mobile app gives homes an all-in-one package. In addition, we saw strong sales of the Motorola MH7020 expandable AC2200 Mesh System in retail. Robust sales of these software-driven, higher ASP products contributed to a 300% quarter over quarter increase in deferred revenue from software subscriptions.”

[End Game]

MANCHESTER, NH, July 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Minim, Inc. (NASDAQ: MINM) (the “Company”) today announces the launch of the Company’s proposed public offering of $25 million pursuant to a registration statement filed with the Securities and Exchange Commission (“SEC”). The Company expects to grant the underwriters a 30-day option to purchase up to an additional $3.75 million at the public offering price less the underwriting discounts and commissions. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The Company intends to use the net proceeds it receives from the offering for general corporate and working capital purposes, which may include inventory optimization, development and marketing of new product offerings and expansion into global markets.

B. Riley Securities is acting as the sole book-running manager for the proposed offering.

[End Game]

MANCHESTER, NH, July 26, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Minim, Inc. (NASDAQ: MINM) (the “Company”) today announces the launch of the Company’s proposed public offering of $25 million pursuant to a registration statement filed with the Securities and Exchange Commission (“SEC”). The Company expects to grant the underwriters a 30-day option to purchase up to an additional $3.75 million at the public offering price less the underwriting discounts and commissions. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The Company intends to use the net proceeds it receives from the offering for general corporate and working capital purposes, which may include inventory optimization, development and marketing of new product offerings and expansion into global markets.

B. Riley Securities is acting as the sole book-running manager for the proposed offering.

[End Game]

On July 23, 2021, the Board of Directors (the “Board”) of Minim, Inc. (the “Company”) approved cash bonus payments to the Company’s named executive officers for the Company’s performance in the first half of 2021 in the following amounts: Graham Chynoweth, CEO–$20,830.00; John Lauten, COO–$15,622.50; and Sean Doherty, CFO–$12,498.00.



Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.


On July 23, 2021, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment (the “Certificate of Amendment”) to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) to increase the number of authorized shares of capital stock to 62,000,000 shares, consisting of 60,000,000 shares of Common Stock and 2,000,000 shares of Preferred Stock. The form of the Certificate of Amendment relating to the increase of authorized shares of capital stock was approved by the Company’s stockholders at the Company’s Special Meeting of Stockholders (the “Special Meeting”) held on July 22, 2021, and by the Company’s Board.



This summary is qualified in its entirety by reference to the Certificate of Amendment, a copy of which is attached hereto as Exhibit 3.1 and is incorporated herein by reference.



Item 5.07 Submission of Matters to a Vote of Security Holders.


On July 22, 2021, the Company held the Special Meeting. At the Special Meeting, the Company’s stockholders voted on the following proposal:



(i) an amendment to the Company’s Amended and Restated Certificate of Incorporation to increase the number of authorized shares of capital stock to 62,000,000 shares, consisting of 60,000,000 shares of Common Stock and 2,000,000 shares of Preferred Stock.


The voting results are reported below:



Proposal 1 – Amendment to the Company’s Amended and Restated Certificate of Incorporation



The amendment to our Amended and Restated Certificate of Incorporation was approved based upon the following votes:



Votes For Votes Against Votes Abstained Broker Non-Votes
27,526,395 567,488 11,820 0

[KOmani]

Delayed reaction pump.

Seems like shorts are hoping more sellers wake up.

We shall see if it gets run up at 10 am.

[End Game]

Nice...."Minim Awarded First of Two Patents Fundamental to Intelligent WiFi"

[End Game]

Nothing has changed on my end. Hoping to finally get some extra buying power with the Minum Nasdaq uplisting.

[Renee]

MINM moved to the Nasdaq from the OTC:


https://otce.finra.org/otce/dailyList?viewType=Deletions

[End Game]

"Cyber gangs demand $70m in Bitcoin to unfreeze computers as former government officials tell CBSNews
the breach targeted widely used software + then took data hostage, calling it “2 worst case scenarios coming together."

[End Game]

Good article. Yes, their products are becoming best in class. Also, uplisting to Nasdaq is a game changer. Many instituions won't invest in OTC. This will make Minum more legit. Also adds extra buying power to my account.

[Hegotgame]

Minim to Begin Trading on NASDAQ

https://finance.yahoo.com/news/minim-begin-trading-nasdaq-113000596.html

[zenvesting]

The last run may have been short-lived, but their future is brighter than ever. I expect $5 will just be a mile marker on the road to double digits once the market figures out how important being the first Low Latency DOCSIS (LLD) cable modem is to the cable internet service providers.

LLD is going to make a measurable difference for all cable broadband subscribers, I expect service providers will be eager to deploy this new feature to their subscribers in their next generation of Customer Premesis Equipment (CPE).

https://www.lightreading.com/cable-tech/docsis/full-speed-ahead-for-low-latency-docsis-/d/d-id/769288

[End Game]

Let's get the price back to $5. Expecting more news on Nasdaq uplisting any week now.

[dg33]

Hope it holds. The stock is so thinly traded that it doesn't take much to move it up or down a fairly significant percent. Although, a lot of shares traded today. Someone (or more than one) really wanted in.

[swampboots]

MINM up .94 cent, HOD, great early tag!

[Renee]

Zoom Telephonics Inc. changed to Minim Inc.:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

[End Game]

Zoom Telephonic's rights to Zoom trademarks should be as solid as they come. If Zoom Video wants their trademark rights so badly, they should just buy this tiny company straight up.

OT, one of my big loss stocks, VRSEF has been dark for two years. Nothing from the company for over a year. Basically zero volume for months. This week tiny volume showed up. It's either nothing or chance for huge percentage gain if they are looking to take private or reverse merger.

[zenvesting]

Zoom video is challenging Zoom
Telephonics trademarks, the trademark office has declined numerous applications from Zoom video due to Zoom Telephonics existing trademarks, so Zoom video has filed a request for them to be nullified, but Zoom Telephonics plans on reintroducing
products under the Zoom name:
https://www.bizjournals.com/boston/news/2021/04/23/zoom-video-wants-mark.html

End Game, you may have been right about the value of the Zoom trademarks, this could get interesting...I wonder what Zoom video would pay to get the trademark "Zoom" that has become ubiquitous for video conferencing?

[dg33]

I added more shares, too, today, I hope it doesn't get down to 2.01!

[Bmrboy]

dg33- Agree. I'm adding more shares here. Got a fill today at 2.51 and my next is at 2.01 if it gets there. You have to like this story as it is more of a tale of growth and uplisting to another exchange if all goes according to plan. These are my favorite - hopefully these guys execute their plan well. Sounds like they have quite a deal of expertise.

[dg33]

You can ignore my question. I just listened to the conference call. They should do well in 2021. I think the price action of the stock today is people reacting to earnings at face rather than having an understanding of what impacted those earnings during the fourth quarter and during the year. The stock is being hit for no valid reason, IMHO.

[dg33]

What makes you say that?

[End Game]

Nice. $5/share soon enough.

[zenvesting]

MINM's Motorola cable modems continue to get top reviews.

Tom's Guide just highlighted the Motorola MB7420 cable modem as the best cable modem for "most people":

https://www.tomsguide.com/us/best-modems,review-2832.html

(It's also kid of funny the old graphic they used in this article shows an old school Zoom modem.)

Forgot to post it here, but a couple of weeks ago Rolling Stone highlighted the MB8600 as their second choice for customers looking to eliminate cable modem rental fees. Notice that it is also the only modem they mention "features advanced security":

https://www.rollingstone.com/product-recommendations/electronics/best-cable-modems-1104627/amp/

If this Wirecutter review naming the MB7621 was responsible for some of the sales growth we've seen over the past year, then this Rolling Stone feature and Tom's Guide ought to keep the momentum going:

https://www.nytimes.com/wirecutter/reviews/best-cable-modem/

[End Game]

While waiting for MINM to announce they will be uplisting, have you found the SPAC world? Life changing for me, but I expect it will end early 2021.

[zenvesting]

I hope you're still holding, this merger gives us an exciting SaaS business model in the sticky ISP/MSO market!

When I first clued in to Jeremy Hitchcock's involvement here about a year and a half ago, I quietly fantasized that he might use ZMTP to bring Minim public, but don't think I ever allowed myself to share that idea with others, because it seamed like a rather far-fetched possibility at the time.

Its been a bit of a long winding road over the past year and a half since then. I have to admit, I let go of about 15% of my position as I lost hope for their MSO strategy earlier this year after reading this Light Reading on the departure of Joe Wytanis:

https://www.lightreading.com/cable-video/docsis/zoom-telephonics-ceo-steps-down-/d/d-id/759559

Now this new Light Reading article and interview notes with new CEO, Gray Chynoweth, has me more excited than ever about the potential for their MSO strategy:

https://www.lightreading.com/security/minim-to-combine-with-zoom-telephonics-rebrand-/d/d-id/765451?_mc=RSS_LR_EDT

I've been quiet here lately as I was trying to buy back that 15% I let go, I got most of it in the high $2s and low $3s, as I look forward to seeing how this new "hero" platform of a hardware/software combination is going to be received by those higher Tier network operators Gray thinks will be intereested...and what new speeds and services may be possible.

The work from home market for corporations looking to secure the edge of the network is another very exciting market I look forward to seeing develop over the coming months!

[End Game]

Great news. I haven't sold a share since merger. Nasdaq or NYSE listing is coming for sure.

[zenvesting]

There are some very smart technology innovators on the board of the company now, we also now have a recurring revenue base in the sticky ISP servives sales channel that we don't know the size of yet, but we do know its growing rapidly. The new board member from MaxLinear (MXL) could be a vital connection to innovation in connectivity, just looking back at this makes one's mind spin with possibilities.:
https://www.maxlinear.com/company/press-releases/2016/maxlinear-mxl277-full-spectrum-capture%E2%84%A2-docsis%C2%AE-3

[End Game]

What a winner for me. Hit $5+ today and will return when it gets Nasdaq listing.

[Renee]

ZMTP changed to MINM:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

[Midwestrader]

Symbol change coming at midnight today. Soon to me MINM.

[End Game]

Hoping for $4 and Nasdaq listing soon.

[End Game]

Seems like you took good advice. Hoping we hit $2.50 next week.

[gistheman]

I was listening at that presentation and it was my favorite one of the year. I bought a position then and still hold.

[End Game]

That's really cool.

I used to converse with Frank on the Y message board. I owned a lot of zoom stock before the China nasdaq/otc deal. I lost a ton on the China fraud. I remember both Frank & me being puzzled how little info the new china company would give us on quarterly conference calls. I ended up selling my zoom shares before zmtp sold their allotment of shares. Back then, I always said zoom dot com could be a top ten generic domain and now it is.

But, I kept a lot of otc zmtp and kept buying sub $.20. I'm still impressed Frank pulled off the motorola lincese. I ended up making my best profit ever on most over $3. Bought back in around $1. The good thing is Frank is such an honest guy. Glad to see him get the payoff at $2.50.

You play any Spacs? The sector is kind of out of favor, but I love picking up shares & warrants in good private companies going to IPO.

[zenvesting]

I met Frank and Pat Manning at the MicrocapClub conference in Detroit in 2016, just after the Motorola license was announced, but only bought into it last summer after Jeremy Hitchcock got involved.

My pitch focused on Joe Wytanis and his plan to market their modems and routers to supply Customer Premesis Equipment (CPE) to Multiple Service Operators(MSOs), so I was admittedly wrong on that being the driver going forward, but fortunately, retail has done quite well and the company has maintained a strong strategy in the retail channel. I also emphasised what a strong brand Motorola was, as we were meeting near Schaumburg, Il, where Motorola once had it world headquarters. My pitch wasn't that well received, but it did outperform all the other stocks that were pitched at the MCC Leadership Summit in 2019, and those who took a position of the company then are appreciative of the gains we've had so far.

[End Game]

"I wouldn't allow myself to dream this out loud a year ago when I presented this as my best investment idea at The MicrocapClub Leadership Summit in September 2019."

How was that received?:) ZMTP has been a lonely investment.
I can't see $2.50/share not being the new base floor.

[End Game]

Yes I did read it, nice find. No doubt there will be a merger. How can it not be one, with Mr. Hitchcock now majority owner of both companies. I've been in ZMTP for years too. I just how we get a fair deal in the merger. Jeremy holds all cards, so he can't lose.

[zenvesting]

Did you read my previous post from a few days ago End Game?

My hunch is that you are looking for too close for the End Game here, and while this may have been the end game for Frank Manning and friends, it seems Minim may be looking to merge with ZMTP for a capital efficient way to go public, without feeding the pig investment bankers in the IPO business.

I wouldn't allow myself to dream this out loud a year ago when I presented this as my best investment idea at The MicrocapClub Leadership Summit in September 2019, but now we are told they have extended the standstill agreement until November 6th. I believe there is possible 1+1 = 3...or maybe even 10 in the possible outcomes for us minority shareholders here.

Minim is a sexy SaaS company selling their services to over 70 network operators and now also finding an angle in the remote worker network security market too.

I wouldn't mind welcoming Minim into our fold, for a similar valuation to the ratios the market currently ascribes to ZMTP....I hope they can get it done.....and NASDAQ should be easy once the next couple of quarters show this company's earnings power without the affect of tariffs and air freight expenses!

[End Game]

Co-Founders Frank Manning, Peter Kramer and Joseph Donovan all just retired. Jeremy Hitchcock bought most of their shares for $2.50/share. He is now majority shareowner. As a shareowner myself, if they buy Zmtp Zoom for less than $5/share I'll be PO'd. It's going to be uplisted to the Nasdaq soon.

[zenvesting]

Zoom Telephonics in merger talks with Dyn founder's Internet startup

https://www.bizjournals.com/boston/news/2020/10/05/zoom-telephonics-mulls-merger-with-dyn-founders-i.html

Zoom Telephonics, a Boston-based maker of cable modems and other communications products, is taking steps toward a possible merger with the 3-year-old New Hampshire startup launched by the founder of Dyn.

Zoom, which is traded over-the-counter, said in filing with the U.S. Securities and Exchange Commission last week that it entered into an exclusivity agreement with New Hampshire-based Minim Inc. regarding a possible business combination. The agreement states that the companies will not pursue any outside mergers until after Oct. 8.

In an email, Jeremy Hitchcock, founder and executive chairman of Minim, declined to comment about the deal. According to another public filing dated Sept. 30, Hitchcock is not participating in the discussions between Zoom Telephonics and Minim regarding the possible transaction.
Zoom Telephonics did not immediately respond to a request for comment.

Hitchcock launched Minim Inc. following a 2016 cyberattack that hit Dyn, the Internet infrastructure company he started in 2001. Dyn was acquired by software giant Oracle Corp. (NYSE: ORCL) in 2017, reportedly for over $600 million.

Minim launched started offering software in 2017 that automatically identifies unusual behavior while monitoring the Internet traffic flowing from connected home devices. At that time, it had $2.5 million in funding from local venture capital firms Flybridge Capital Partners and Founder Collective. Neither firm backed Dyn.

When contacted for comment on the possible merger, Kelly Crowley-McInnis, a former director of human resources at Zoom Telephonics, told the Business Journal that her position and a handful of other senior roles at Zoom Telephonics were eliminated in advance of the potential merger with Minim. Crowley-McInnis, who had been with the company since 2019, said her last day was Sept. 5, and the company has around 50 full-time workers in Massachusetts.

Both companies work with the smartphone company Motorola Mobility LLC. Earlier this year, Zoom Telephonics was granted the extension of its license agreement with Motorola, which makes Zoom a supplier of Motorola-branded cable modems and other products until 2025. Meanwhile, in 2019, Minim announced the integration of its software into Motorola-branded router products from Zoom Telephonics.

The agreement between Zoom Telephonics and Minim, inked on Sept. 26, can be extended beyond its current deadline for 14 days.