Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The shares are a wash, they issued 33 million and got them back so its a net gain or loss of zero on the shares. Its the 6.1 million cash they took a loss on.
Yes you can say the gain is much more due to guaranteed share price they dont have to pay etc, but what I am saying is if yhe deal never occurred to begin with NEOM would have 6 million plus more cash on hand as we speak.
And the joke continues......
So let me see if I understand this right. NEOM paid them 6,144,000 in cash as part of the acquisition. Less then a year later NEOM will recieve 250,000.00 of that cash back for returning the company to its original owners.
So technically speaking NEOM paid about 6 million for a 7 percent ownership in a company with 2 million dollars in assetts approximately.
I will say that its good to sell it back and lower that monetary value owed the subs, but its only a small portion of whats owed. Are we selling back all the other subs too so we dont have to meet guaranteed share prices? And if so at what costs to the NEOM shareholders. This little fiasco just cost us over 6 million with the legal fees etc, and sponge has 6 million in the bank to carry them through or do what they want with...LOL.......Actually the shareholders more then likely already divied up the cash, and will watch for another sucker to sell out to.
You dont have a clue what either one of us might be using do you? Like all your other matter of fact statements about NEOM that never pan out as well.
As for understanding the technology, I think there are many here that understand it more then those with the new phones that claim they know more then anyone else, and they know who they are.
Funny the ones who dont know this technology as you claim have been more right to date then you or any of your buddies, as to how long it was gonna take to come to market, how long Cornell would be in the picture, where the pps was going to be sitting for the past 12 months and on and on and on.
I guess its something in them manholes makes some think they know more then others when in fact they dont know a thing.
By the way since someone liked to harp on my spelling and grammer this is the second post of yours in two days with errors. I guess as that poster suggested it leads some to draw conclusions.......Now please tell us what bein is?
Oh and speaking of investment understanding, do you go out and buy a house financed through fanny mae so you understand fannie mae better before you invest in it...LOL
The inventor of the QR codes does have a patent, but is not enforcing it, and has chose not to enforce it publicly so its open source code at this time available to anyone and everyone. I am not sure the status on the DATA MATRIX codes.
But those 2 codes dont have to only be a URL. Your business card can be coded into any of them, and as long as the decoder can read them it will give you all the info contained in them without ever using NEOMs IP.
The Data Matrix code has enough space if I am not mistaken to hold a list of ingredients or other valuable information, and then could still contain the URL to take you directly to the website, if you want more information.
You are correct, we will see some time down the road.
Having said that, I personally believe in the beginning you will see most of the revenue going directly to the cell phone carriers, for direct to consumer advertising and promotional campaigns on an opt in basis by the consumer. Another stream that NEOM has no controls over. This will probably be happening very soon as some big marketers already have pilot programs going on.
Then on top of that the static codes like Microsoft is adopting(QR CODES) at this time will be taking another large chunk of the pie.
You arent going to see many brand managers jumping out to get the premium service, in a new and unproven technology, and many are going to be hard to get to even take that first step.
Many thought the same about internet advertising and marketing many years ago, yet to date some of the biggest advertisers out there, still spend a very small percent of their budget on that medium some 10 years or more later. They still spend the bulk of their ad spending on traditional print and media sources.
I believe you will see this same process occur with the cell phones, although it might happen a bit more rapid then the internet took to develope.
So when all is said and done, there are going to be a lot of slices taken out of that pie, that dont include NEOM or its IP, and just how much is left for NEOM will be left to be seen. The point is, NEOM will not own this market, but will be sharing it with many other competitors, some the likes of Microsoft, so its not going to be easy for NEOM.
QR and DATA MATRIX codes are 2d codes and are not covered by NEOMs patents if the URL is embedded directly in the code, thus not requiring a resolution server to identify the code and match it to a URL.
NEOM does not own the space for QR and DATA MATRIX codes, as has been discussed here in great detail over the past several weeks.
NEOMs patents as you state, cover 2d codes when there is no URL embedded in the code, so technically speaking yes a QR or a DATA MATRIX code could well be covered, if its just a symbol that needs to be matched to a URL, using a data base.
But apparently no one using QR codes is not embedding the URL. They are out there and being used as we speak, just as DATA MATRIX codes are out there and being used, and to the best of my knowledge NEOM isnt recieving a dime of revenue off either.
Jonesie......you are correct. Lets assume for the moment someone was using a variable code and decided to run a new campaign, even lets assume its running concurrent with the older campaign. Someone at the company would still have to design a new web page with a new URL to make that varaible change link to the new promotion. So regardless of whether the company is using a static code or a variable code, web page designing would have to occur for both campaigns unless they are identical.
Now having said that, its just as easy to modify your existing page to include the new highlights of the second campaign, and upload it either to the same URL if old promotion is over or to a new URL. You can then very easily add a link on the old campaign web page if that campaign is still ongoing, and the link will take the user to the second promotion. I doubt that a link would be necessary though because not to many companies run two promotions at the same time.
Someone also asked about how this would work with demographics or location based performances. As we discussed earlier there can be a small program in the decoder that checks the demographics such as age or location to direct you to the proper web page for your location, age or gender, if the promo is based on any of these factors.
Another issue I have problems with in Lesnshawns post is the issue of microsoft, and whether they will need to license NEOMs IP after the scanbuy suit is over. If they are using static codes they will not need to license NEOMs IP whether scanbuy wins or loses.
And the issue of whats becoming mainstream, as I said in my post it APPEARS those two codes are becoming mainstream. Appears means its an assumption based on the info that I have available. And if MFST, Postal Service, Firefox, and many others are using either QR or Data Matrix at this time, then thats all we have to go by. Those being some of the bigger players is enough to assume reasonably that the way things are going is toward those codes.
On the issue of the amount of data they hold, I dont think anyone is looking to right a bbook and include it in the code. I believe that the japanese found plenty of data capacity in the QR for their purposes since thats what they are mainly using, and 2.5 years later apparently everything is going well. But if you need more data then I am sure the DATA MATRIX can handle all you would want put into the code. Keep in mind the code is to just get you to a url, and that URL or web page can have all the additional data you want, without limits. And why did the Japanese who are so smart when it comes to technology choose the static over the variable? I can remember a time where all our electronics here came out of japan just about, because they were so far advanced on the US when it come to manufacturing these type products. I watched an interview a couple years ago, that stated we would need a minimum of 5 years to upgrade or manufacturing plants to get them as efficient as the japanese plants.
So I do believe you will see us starting out here in the US with static codes mainly, even if down the road things go more toward variable codes.
The only advantage NEOM will have really is on the existing bar codes, and I believe I read somewhere that in the next 5 years or so they will be pretty much phased out due to 2d codes and RFID.
and your observations only addressing another poster have no business in this forum. I noticed that IHUB is now including a box in the side where ads normally are that addresses off topic posts..........let me copy and paste it for you and others that still dont get it..........
Off-topic: Any off-topic discussion is a violation of TOU. If your post is not about the stock for the board you're posting to, do not post it. Use email, private message, or post it to a board where it is on-topic.
Spam: Do not post the same or similar message on more than TWO boards. More than that is considered spam. Spam posts will be removed and repeated and/or egregious offenses may result in suspension of your posting privileges.
NEOM does not have a code of its own to be entered. QODE is a code decoder thats all it is, as far as codes are concerned. There are other features like keywords but that has nothing to do with codes.
Well I noticed you didnt answer the question asked of whether the information I posted was factual. Dont you think thats a valid question that deserves and answer, whether it can be spun as a positive for NEOM or not?
So again, the question that was asked is whether Microsoft and others are adopting the QR and DATA MATRIX codes, and whether that helps or hurts NEOMs revenue generating capabilities?
And for the record in your initial response to Jonsie you got one of my supposed facts wrong. I never said that microsoft was embedding QR and DATA MATRIX codes into their products or their phones. I said the cell phone manufactures were starting to install those applications on new cell phones they are manufacturing, which has nothing to do with microsoft per se. Although it will allow those phone users to decode microsofts QR codes right?
Thanks Steeler, Its funny how many come up with these theories such as the one this poster you are referring to came up with.
I had no intentions of trying to do a work around around someones ignore filters and to suggest that was ridicules. I posted my post based on information that was supplied right in this forum, so as best we all know it is all FACTUAL, and the funny part of it is most of those statements Jonsie asked about, came right out of references supplied by non other then JP a couple days or so ago, when he supplied all the links to the different codes. If you go to that site and click the available links there, you will find almost everything I stated pertaining to microsoft and firefox etc? The only part that wasnt there is whether QR codes or Data Matrix impede NEOMs IP, and as long as NEOMs IP requires a resolution server, we have already discussed at length here, that these codes with embedded URLs do not violate or impede on NEOMs patents.
So to the best of my knowledge, and based on the data thats been supplied here, it was all FACT in my post, of course with my commentary of those facts.
And by the way, another key issue that should be being discussed here is the massive amont of shareholders money the company threw away in getting Cornell to sign the SEDA. The very same SEDA that they now say, they dont see as a viable finance option, because of actions taken on their part, to enter into the preferred deal at a later date. They are so indebted to Cornell now, that even they realize that they cant go to the SEDA for finances necessary, and have to look to other sources. Yet how much did it cost the shareholders in cash, and cheap warrants just to get this deal signed? Well over 1 million dollars right?
Jonsie....Jps own post the other day included a link to Microsoft mobile using the QR codes, and there was also a link to go to microsofts web site to make your own QR codes to use with their mobile platform. And if Microsoft is using it with their platform its only a matter of time and many smaller organizations will be following the lead of the giant.
Data Matrix we already know is being used by many companies in the US and everyone here I am certain has seen mail with the codes on it, and the postal service probably reaches more users then anything else in this country.
So the trends right now are toward those 2 codes both of which circumvent NEOMs IP.
Well there are a few misconceptions in your post. First of all you contradict the info even in one of your own posts I read this morning.
You state that QODE is now available on all 6 platforms, yet in an earlier post of yours you state that all 6 platforms arent expected to be ready until 1st quarter 2007 and thats EXPECTED, and we know nothing goes as expected with NEOM. So which of your two opposing statements are we to believe?
Secondly I believe someone just posted here in the past week or so the link to an article where one of the main cell phone manufacturers is now only going to include Microsofts application on all their phones. So their exposure will certainly be increasing in the future in this market right?
Thirdly you ask who is going to activate these data matrix and QR codes. Well look around, they are already being activated and used by large organizations, without the availabiliuty of QODE. Who is activatiung them for the postal service who is using them on mail already? Do you think its NEOM?
As for QODE you say it offers a 3 in 1 application. At this time does it offer a 3-1 solution, when it cant read any of these codes at this time? Maybe if you used words like it intends to or will at some time in the future, then your posts would be more realistic. But to say it operates on all 6 platforms now, and it offers 3-1 solutions now, is pretty dissengenuis isnt it?
Now since you brought up the voice and visual recognition as well, and state that NEOM has built this platform, please provide us some links to show these features are operational on NEOMs platform at this time? I believe they stated their focus right now was to get the platform working on the 6 cell phone platforms at this time. Then they were going to focus on making it code agnostic. So if your earlier post is correct and the platform issue wont be settled until sometime in 1st quarter 2007, how long after that will the code agnostic feature be available? Then how many months after that will the voice and visual recognition features be available on all platforms?
Thats the problem JP, you talk as though all this is in place and ready as we speak, when we all know thats just not true, but a new investor coming here and reading your posts dont know it right?
So isnt it time to start talking seriously here about some of these work arounds even you now acknowledge are in the works, and what impact they have on NEOM? Instead of only focusing on what NEOM will have to offer if all their plans go through as they plan? Shouldnt the average investor know about the competition? And at this time what are the two most popular codes being adapted by US companies? Major companies like Microsoft, and also the most popular browser to IE, FIREFOX is also going to QR codes are they not?
And any cell phone with a browser will have access to these codes without NEOM. Are you forgetting that QR and Data Matrix codes installed on phones, only requires a browser on the phone to make use of those codes? And all phones have a web browser at this time dont they?
Nice catch Andrew..........and just why would NEOM buy those shares knowing there was no legal obligation to register them. And more importantly why didnt NEOM disclose this critical fact in the PR announcing they would distribute the shares as dividends to existing shareholders?
Thats right Allin, these compensations arent for small time employees, not for a magnitude this size. And these stock options dont include their regular salaries as well, but are in addion to their salaries, so you guess that it must be the top leaders of some of the subs is the best guess I have heard yet.
But wait, its these top management guys that saw so much in NEOM they couldnt jump on board fast enough right? Reading the posts here thats the impresion I get repeatedly, even when its disputed with the fact that many of the subs didnt have many options but to agree to a buyout by someone. They were provate companies that cant issue shares to stay operating, and as I pointed out 1 had 8 million in liabilities alone when taken over, and was non profitable. The private lenders dont like to see 8 million in debt when you come asking for more loans, on top of losses. But then again these Owners knew more about NEOM then anyone else so they had to have seen things we dont know right?
Funny how there are so many physcological analysts here that have it all figured out, when in reality they dont have a clue.
First of all, contrary to your view or should I say OPINION, there are some owners of stocks, that dispise the senseless pumping, even though they are down thousands of dollars. Maybe you need some more course study on physcology, before attempting to determine someone heres motives, whom you have never met.
Consider for a minute you go out and buy a brand new car, and spend thousands of dollars on it, yet monthly its in the shop for one kind of repair or another. Then you find out theres a forum of some sort where owners of these cars post daily. When you go to that forum and see everyone else there touting how great this car is, arent you going to be a little peeved, even though you spent thousands of follars and in your view have a piece of junk?
So contrary to your view, there are people out there, that can be down thousands of dollars on an investment, and still be concerned that other non suspecting investors dont follow the same fate, because of baseless pumping posts on a message board. Especially when those posters make it clear that the other sides views are not welcome yet that forum is one of only a couple that a new investor has to go to to learn what they dont know how to DD themselves.
As to anyone down thousands of dollars welcoming any kind of encouragement, again you are off base with that assessment as well. Yes that might be true if the encouragement is factual, and will produce something tangible. But to date, all the encouraging new developements posted on this message board have produced nothing in the form of financial stability for NEOM have they?
Matter of fact each quarter their financial status gets grimmer and grimmer, regardles of the thousands of posts here suggesting otherwise. Take this quarter for instance. At the end of the quarter they had 3.1 million in cash, which by now they have spent at least half of that. A month and a half from now they have a payment of 2.4 million to pay to silent partners. In the next 4 weeks they have to spend 1.2 million on new equipment for 1 of the subs. These are immediate cash needs, yet the longs here claim when the launch occurs in the UK the financial problems are over. That statement is so far from the truth its unbelievable. If ONE is the launch there is no telling how much revenue it will generate. Even if it does gennerate revenue, it would be 30 - 60 days beforew that is calculated and paid to NEOM. No one pays on a daily basis, so no matter what model NEOM uses, whether its a flat fee or pay per click, and the program launches in December, NEOM wont see any revenue until late January at the earliest.
Reality is that financial distress, and further dilution are going to be around at least another 12 months. To what extend the dilution will occur is anyones guess, but with the pps where its at now, NEOM will have to issue something to the subs to satisfy the guaranteed share price. All we can do is wait and see at this time.
And lets not forget that NEOM is going to need plenty of cash to defend itself in the patent suit against Scanbuy, something thats not even been mentioned in thisa forum. Anyone think their 3.1 million they had at the end of September is going to cover this and fund their operations? Even NEOM states the 3.1 wont get them past the end of this year. I think they say in the filing that the 3.1 and the fact they are selling the paint business will carry then through December 2006.
Me personally, my anger towards certain posters here far exceeds my anger toward the company. The company isnt posting daily theories or opinions to lure in investors, and then attacking anyone who attempts to genuinly debate their opinions or pie in the sky posts and labeling them as bashers etc. Especially those posters who like myself, have been researching this company for 3 years or more, and know what they are posting at this time is a pipe dream, based on the companies past performance. Those posters in particular, know at this time the company has failed to perform, the financial numbers have gotten worse not better, and at this time are in dire straits financially. Yet unlike the company, they are here posting more fluff day after day, injcting companies into the discussion that have nothing to do with NEOM etc, just to promote NEOM.
Yet not one of those posters point out the latest developements that may be very detrimental to NEOM. Like the fact that MFST has decided to use QR codes in their mobile application. That phone manufactures are now including a built in QR and DATA MATRIX decoder on their phones, thus eliminiating the needs for NEOMs QODE reader for these 2 types of codes, which appear to be becoming the standard codes of choice by the big players in the US. And what about the fact that niether Data Matrix or QR codes involve neopms patent since both codes can contain the url directly embedded in the code, thus not requiring the use of a resolution server as called for in NEOMs patent.
These are the things that should be being discussed here so potential and existing investors get a real picture of NEOMs possible future. Yet the only ones willing to bring up these issues are your so called bashers. Go figure.
yeah and they were creating a name brand for the paint business a year ago and what did it get them so far. Remember all the hype here on how huge this china deal was. It hasnt produced a dime in a years time and hurt the company.
So I bwill believe it when I see it
Insiders buy shares of their companies all the time and very seldom do they get in any trouble. The only ones that do get in trouble are those that buy a day or two before releasing some big material event that causes the pps to spike, where then then turn around and sell and take the profits. In NEOMs case there hasnt been a big spike in the past 12 months so I would bet they were save buying shares.
yes i still own shares and am down over 26,000.00 so i have just as much right to sit here and complain about the ridicules pumping that goes on here daily, as the pumpers have to post their hype.
you mean risk their own cash like so many investors have. hahaha, thats funny. Remember they are insiders and see these numbers etc monthly, unlike you or I who have to wait 4 months for a quarterly result. With the 10Q filed yesterday not many smart incvestors would be investing a whole lot at this time, until their fiscal house is in order.
You say the longs on here covered everything the so called bashers have over the past 24 hours. Thats bull crap and you know it. How many longs pointed out as I did this morning the paint business has asset value under 3 million dollars? I read every post and not a one did. But those same longs were the ones pumping the paint business as worth over 20 million a few months ago. Why didnt they come out and correct themselves, and state they misspoke/ If they could put a value on the business then and call others liars, surly with the numbers staring at them in the 10Q they could make the corrections on what the real value of the business is.
Now how many laid out the debt and operating expenses for the next 18 months to be 60 million roughly. I dont remember a post on that either, and yes I read all the posts.
How many pointed out the language about selling the subs or other assets, and I dont care what anyone says, thats not standard disclosure language.
I can keep going on the things that the longs didnt bring out that other so called not longs did bring out this morning, but instead will end by stating the longs did what they do best. When they are on the losing end of a debate they focus on the poster and not the issues, and thats whats gone on this entire morning.
This 10Q got less airtime here then a possible GOOG?NEOM merger has gotten in the past, and this 10Q is reality, while the google/neom merger is fairy tale. Just shows the priorities on here.
Well let me see......how many times has the same hypothetical pumps been repeated here over and over again. How many times has MSFT and GOOG been mentioned here over and over here when all the longs know at this time they have nothing to do with NEOM.
Oh and what about the one poster who since yesterday has posted the same reason why she dont like to compare year over year results 4 times and almost exactly word for word.
I can go on and on, but its funny you all dont mind the repititiveness, even if it has no bearing on NEOM when its a positive.
But the fact is its not you longs who get to set the agenda and what gets posted, but when you dont like what is posted you go into attack mode, then claim you dont want a one sided forum. Thats a little hypocritical isnt it?
It dont take a scientist to realize there are enough pumpers on here covering every aspect of those PRs so they dont need addressing by the other camp, although i did address that pr in an earlier post.
Yet as JCG just pointed out none of those same posters want to discuss the negative aspects of the company. Amazing stuff here.
But they will lie in wait for the so called bashers and attack and claim this is a board for positive viewed longs contrary to Matts rules. If they want a one sided forum, those have been available for about 10 years now where you set up your own and password protect it to control who comes and goes. This is not one of those forums, this is a two sided public forum, whether some here like it or not.
And as I stated in the post we havent seen it on the bottles and working yet have we? I believe it starts in December right?
Seems to me he is dictating what the longs here want this board to be about, and not what MATT has dictated these message boards are about. And didnt I just read a post of yours directing someone to look at MATTS RULES. I think they differ a little bit from you and JOES rules about this only being a board for longs, as both of you have stated in the past.
I dont see anything in MATTS rules says you have to own a stock to post, have to be a happy long to post on a stock, or have to be positive to post on a stock. Matter of fact I read his forum and he makes it clear if you disagree with the issues being discussed, by all means post your disagreements, but stay on the topic and off of personal attacks. Go read his posts in the admin board and you will find that answer there.
So you longs with the view that this board is only gor *HAPPY TALK* are way off base according to MATTS standards.
And you dont waste too mush time with your trash. If you only wanted to ask a question, and even then based on your twisted niumbers, why did you include the bottom part accusing me of wrong doing?
You are the one misrepresented the numbers to make a case that somehow I was wrong and had an agenda, and then when called on it, you are all over the place with your responses resorting to name calling. maybe you better look at yourself before you throw names at others ghere, because your motive was very clear.
You went further then asking a question. You deliberately accused me of mistating the ffacts to bash NEOM.
I think most here understood the meaning behind my post. Based on the information we shareholders are right now privy to, the company needs approximately 50 million in the next 12 months to meet its financial obligations. Yes the sale of paint and an additional 10 million might pay for the day to day expenses during that period. But NEOM has other financial obligations during that same period that are huge at this time. Just the 6 million needed to set up the sub for their contract and pay the silent partners is enough.
And then you come out here with a projected monthly burn rate you came up with on your own, and accuse another poster of twisting the facts to bash NEOM. Isnt your monthly BURN RATE ESTIMATE a twist of the numbers as we know them at this time?
Then you say you are just asking a question to understand better or something like that. Your remarks about my post illustrate clearly you were not merely asking a question, but you were spinning the burn rate number we know as fact, and then accusing me of wrong doing based on your twisted numbers.
and Jonsie dont forget the 32 million that is due the subs in less then 4 months. So spin it all you want but their numbers dont add up or even come close to their current liabilities that are due by end of February. The 10 million dont even cover whats owed the subs at this time let alone fund operations.
NO ONE MISTATED A THING. Your numbers are flat out wrong in your post. Did you forget that they need 2.4 million by december 31st to settle with the silent partners. Did you forget the 1 million they have to spend on equipment. Thats 3.5 million alone isnt it? Then add your 1 million a month burn rate or 12 million for 12 months and what do you have? I believe that alone comes out to around 15 million does it not? So even using your conservative numbers and your estimated burn rates just for the basics they are still short if they raise 10 million plus sell they paint for 3.5 million.
Then lets remember they need to spend another over 2 million on equipment in early 2007 to finish the set up for that contract right?
So until we see a burn rate of under a million as you project, my numbers are far more factual then yours based on what we do know at this time. Its you who has spent the morning after my post, trying to find a way to spin it in a favorable light to NEOM using information even you afdmit you dont have a clue whether is accurate or not. Then you ask others to verify if that sounds reasonable that they have their burn rate down to 800,000 or so a month. WHY YOU ASKING OTHERS? NO ONE HERE KNOWS based on the info WE ALL HAVE. We do not its well above 1 million a month.
It shows they cut a deal with a vendor they were already partnered with is what it shows. Seems to me several months ago we were talking about ONE in this very forum and a similiar campaign that NEOM was participating in through its sub. Some here even at that time were unhappy it was a charity event for Africa, and others thought the exposure was good. So all this is is an extension of that campaign right?
And the launch or program hasnt begun yet. Didnt the PR state something about the campaign to begin in DECEMBER?
Its always the case isnt it.
I seem to remmember back right after the acquisitions occurred, the buzz by many here was give the 10Qs some time. Most stated the 3rd quarter would be the 10Q to watch for major improvements, because then NEOM would have a couple quarters under its belt, to get things in order.
Now that the 3rd quarter has been posted those same posters have been deadly silent, as Personalizit said would be the case in an earlier post. But let a non news item about microsoft come up or something and there will be 100 posts to wade through.....LOL
What you saw last night in the 10Q will be not much different then you will see in the Q4 when it comes out, in my opinion, and before you know it, the hype will be wait till Q4 of 2007 to see any real results.
Funny about how the biggest event in the past many months gets released last night, and the top cheerleaders are MIA on the issues in that major quarterly report. But watch when the dust settles and they think I said some other trivial thing they think they can pounce on.
The more I read the fine print of the 10Q the more disturbing the situation becomes. Last night I focused just on the numbers. This morning I have been focusing on the details and it isnt a pretty sight.
NEOM states on page 67 they expect to have to raise 7- 10 million dollars to carry them through their financial obligations for the next 12 months. Hello at a burn rate of even 1 million a month they need a minimum of 12 million for operating costs alone. They then need 35 million to cover acquisition costs. They need another 3 million for their sub to buy the equipment for the 1 year contract discussed that will produce or exceed that amount in revenue(otherwise about break even). Already we are looking at 50 million needed in the next 12 months, unless the pps sky rockets to illiminate the 32.7 million guaranteed share price. Even excluding that 32.7 million they still need a minimum of around 18 million if you add the other 3 items above together. The 2.5 million silent partner obligation, the 12 million burn rate, and the 3 million to buy the equipment,
Then if you look on page 59 the statement there is quite disturbing. It states that no agreements have been made to date with the subs to accept any other forms of compensation for the guaranteed pps. Yet in the CC and prior the CEO stated they were making great progress in reaching such a deal and it looked promising. Well after many months of negotiating, how can it look so promising? especially when taking into account that statement made in the 10Q.
Then on one of those same two pages, NEOM discusses the possibility of having to sell off some of the subs or some of its assets if it cant acquire the finances needed to go forward. And with the pps where its at, the forcing of the options conversions is out the window as one source. The pps has to be .10 above the exercise price, and in cornells case that means the pps has to be .15 to force just some of the warrant options. I dont think we will see that happen in the next couple months. So it made a lot of sense to buy companies you cant afford to possibly have to resell them less then a year later to continue in business.
And for those of you asking what these companies knew, thats all spelled out in the 10Q as well. According to NEOM the only way they won these companies over against the larger competitors also interested, is through the guaranteed share price and thus a guaranteed net purchase price to the sellers. More then likely at a higher price then the competitors were offering at the time, and hense the huge goodwill charges.
Stop the bleed from this acquisition? If my memory is correct the paint business was profitable before the acquisition. Any bleeding is self imposed by NEOM management.
And what about that big sale to China, that was going to skyrocket this paint business. Or the 200 shops being built there or what ever it was, that was gonna be so huge for NEOM.
And what about those who stated that the hold up in payments was due to government regulations over there, and when I questioned that assumption was laughed at. I think I remarked that it dont take a year to get the government there to allow trade payments to foreign vendors. Well apparently NEOM believes thats the case as well now, since they have basically written off the debt.
But it just goes to show, that those who think they know all the details, and pump a stock on a message board, are usually the ones who are wrong in the end. That paint cash cow really turned out to be just that. A cow that eats a lot of cash.
Most of those companies were hanging on by a thread as well, so even the cash they recieved was a godsend to some. And the price NEOM paid for these subs is now a little more open and realistic. What I hadnt done in the past is factored in the liabilities some of these subs had when NEOM acquired them. One company I believe had 8 million in liabilities, so add that to the cash and stock NEOM paid to the company and it turns out they made a very sweet deal, and now NEOM has to worry about how to pay the 8 million. I also noticed there was a delinquency of 1 million in slaes taxes by one or more of these companies. Money that was collected on invoices and never paaid to the regulation authority due it. And these were sound companies, when they are collecting sales taxes and spending it, knowing it has to be sent in to the state or whatever agency that governs sales taxes in their region.
Those cost cutting programs in the 3rd quarter amounted to nothing right? And some here like to tout how the CEO said this or that and he is more believable then any poster on this board.
Well lets break it down a little.
1. Cost of revenue - The gross profit margin got worse not better, so there was apparently not much cost cutting in the up front COST OF REVENUE.
2. Operating costs - actually got worse as well over the 2nd quarter, so again how was there cost cutting programs instituted in the 3rd quarter when the two main financial line items of daily operational expenses got worse.
3. The paint business - that so many here called a great revenue producer and a cash cow, lost big time money for such a small operation. The COST of reven
ue was double the revenue, and therefore a negative gross profit margin. On the financials the paint business is listed as having asset value of 3.4 million and I believe the liabilities was 1.5. million or a net asset value of around 2 million. Any one here still think they are going to get upwards of 20 million in the sale? Some here who supposedly dont know a thing about pricing companies, said the sale waould be under 10 million and were attacked. Well we will see if a company losing money hand over fist can garner 10 times revenue in its sales price, since its revenue appears to be around 1.2 million a year based on the 300,000.00 it took in this quarter.
4. Revenue - revenue was flat quarter over quarter. If you add back in the 300,000.00 paint revenue there was zero growth quarter over quarter, with all these new news articles that came out about the subs etc?
5. NEOMS OWN REVENUE - Neoms revenue when you back out the subs they purchase was somewhere around 300,000.00 as well I believe, or about 1.2 million dollars a year. Pathetic for a company that supposedly has its product in the market and functioning, for 3 years now.
5. LIABILITIES = NEOMs short term liabilities at this time are around 35 million dollars just in releationship to acquiring the subs. With the pps at .10 the price guarantee liability is 32.5 million or something like that, and at the end of december the silent partners are owed another 2.5 million. That dont count operating liabilities either.
6. Cash flow - NEOM had 3.1 million dollars in cash at the end of September, over a month ago. During 3rd quarter they burnt 2.2 million a month in cash for a total of 6.6 million for quarter. If that burn rate hasnt changed much, as I stated weeks ago they are about broke at this time. When you factor in Octobers burn rate if its about the same, that leaves NEOM with less then 1 million cash left, which even with cost cutting wont get them through another month. They arent gonna cut costs in half or less in 1 month I am certain, so the burn rate for November will be well over 1 million in my opinion.
I guess you now know why they decided to sell of the paint business. I know it was spun here that it was something that was intended and a good thing for NEOM. It was also spun by the officers that the sale was so they could focus on their core business. The truth of the matter is NEOM is in such dire financial straights at this time, they had to sell something to provide some kind of funding going forward, and the paint business was the only thing available, and was losing money, contrary to many heres belief.
Bodreaux.if you were as critical of the statements being made on the other side of this dabate, that I am merely RESPONDOING TO then you might have some credibility.
The statements been made over and over and again today that the marketers will have to flock to NEOM because they will be the only one to provide this service. I know that NEOM isnt marketing to the consumer, but their product isnt worth a dime if the consumer cant use it, and thats the point I have been making all day and yesterday. So what theres hundreds of demos up there of AZTEC code. That dont do the consumer a bit of good.
If the marketers decide to go with QR codes NEOMs pretty much out in the cold and thats a fact. Sure they will be a second hand player, if their QODE ever gets developed to read QR codes, but that day hasnt arrived yet either has it?
So the suggestions that QODE is working and the consumer can go click a bar code is a little misleading at this stage of the game? Regardless of whether its FUNCTIONING as you put it or not, there are no real life applications available for the consumer. And as I have stated several times QR codes are already being accepted in this economy by businesses, so that platform you can say is up and running. QODE is not in my opinion.
Also you like to keep harping on the broadcast and how its an outside source and therefore NEOM has no control over the content. Did you watch the video? I seem to recall watching CHAS FRITZ lips moving when he made the statements I am questioning, not the commentator. And he was sitting there during the whole process, so anything the commentator stated that was not accurate, you bet he was in a position to correct it on the spot.
You ask why isnt anyone else taking over the US with this technology then? Someone is, have you noticed QR codes popping up more and more on more items? And are QR codes NEOMs platform or someone elses? The real question you should be asking is why has NEOM never developed their own smart code they wrote about in their very first patent in 1995. The fact is NEOM has NO CODE available to compliment their package. They are relying on everyone elses codes, when back 11 years ago they described a special barcode that had unique identifiers added to it making it a smart code. Go read the patent. Where is their own code after 11 years to develope one?
Are those codes everyones been clicking real codes for marketers or are they NEOMS DEMO CODES? I thought they were just demos but thought I better check with you first. I didnt say there arent codes out there for those who want to waste their time cklicking on a demo did I? Matter of fact I think I said in several posts thats all there is to QODE at this time is demos and they dont produce revenue. Think I also said we will see if any big marketers sign up for QODE or not but at this time there are none, other then the 2 publications which dont produce revenue either. The smart codes that are in use and ARE NOT DEMOS are the QR codes that QODE cant decipher from a hole in the ground at this time. The other smart code that is in use and not a demo is the SHOT CODE again a code QODE cant decipher. Gee you saw two T-shirts both produced by NEOM and that means the product is in use by the population? No the demos have been up since i started posting here last December, and you of all people know that, but a year later they are still just DEMOS arent they?
Yes and his take is different then the reply Claw posted here from MATT isnt it? Didnt Claw say MATT responded that it was borderline, and since it didnt contribute to the diiscussion of NEOM then its more then likely a violation? I believe Clawman even said he protested that answer right?
But it just goes to show that the standards are all over the place and only used when its convenient to ban someone.
So based on the reply Clawman posted here, and the messages sent to me about the subject, I will go with Matts assumption if you dont mind, since even you have always stated here, take any coomplaints up with MATT, unless MATT and GRUBBS are one and the same.
Thats the part you dont get KOKO. You say its the other side that will have to decide to switch on their codes through NEOM. You even mention QR codes as an example. They dont need NEOM for their QR codes to be fully functional to the consumer. Thats the part apparently you keep missing. And QODE does not work with QR codes at this time, so its not NEOM waiting for the owners of those codes to decide to turn them on. Those QR codes are already turned on and NEOMs software can not decode them. And those QR codes are reaching the markets without NEOM at this time, because NEOMs QODE dont even recognize them. Do you think the postal service is waiting on NEOM to use QR symbols. No they are using them and using someone elses decoder. So why in your opinion do they NEED NEOM to turn on these codes?
YOU are wrong. The user can not use their cell phones to decode smart codes as was stated in the interview, and NEOM has no software available at this time that will allow them to do so.
So no I am not looking at the listerner as an adolescent. It simply cant be done at this time plain and simple. As to when the details will be completed, you say soon? When in your opinion will QODE be able to read QR codes? When will it be able to read shot codes? When will it be fully operational on the major cell phone platforms?
You claim they can offer more direct connect then anyone else at this time, that is false. You better do some more research. QR codes offer more direct connect at this time, and its true direct connect, unlike QODE that has to go first to a resolution servor, then send your phone the URL. QR is direct connect in the true sense of the word, and is in use in the US already by places like the POSTAL SERVICE as I already pointed out. NEOMs direct connect are all demos at this time, so check your facts.
What evidence do you have that other companies with their own symbols will want to team up with NEOM? None right? It might be the other way around, and NEOM might have to pay these other companies a licensing fee in order to be able to decode their codes using QODE? Have you ever thought that could very well be the case. Do you really think that OP3 needs NEOMs qode to read their symbols on the millions of bottles of sprite in Mexico. They have their own decoder for the individual to use, and surely are going to promote it over someone elses decoder.