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That's why shareholders should demand more information. You have an event that will ostensibly change the capital structure of the company dramatically and shareholders don't even want to understand it. I've never seen people actively argue against their own interests like this.
I think the $50M number is a goal. It looks like someone already made the mistake of asking questions about this on Telegram. I'm really not sure how longs think this is going to work. Even if ARknet could raise $50M, do they expect them to just give it to Tautachrome for free?
But this isn't even really worth discussing, as ARknet is just a holding company for some $TTCM shares and patents. It can't just magically raise $50 million.
They just wanted an excuse for a PR. This is extremely vague on purpose. They want people who don’t know better to assume that this is money that is magically being given to them.
Anyone know what “fund raise” means in this context? Because I work in finance, and I don’t.
There are no filings to support anything you said about the Nugent family, so I can’t really comment on that.
They have picked a strategy that creates incentives that are are not aligned with the best interests of shareholders. I've described exactly how this is the case numerous times.
Why don't they structure management comp like any of the thousands of successful public companies out there? $70K salary/yr. $50K in RSUs that vest in 3 years. Stock options for 100 million in shares at a .01 strike that vest in 3 years. If $TTCM is .1 in 3 years, DLM and Jon make >$9 million. No more convertible note purchases. Licensing agreement is ended and IP transferred to Tautachrome. This seems very fair to both management and shareholders.
DLM has over a million bucks of his own money invested and hasn't cashed out a dime.
Shares can be sold for money. Jon receives money. Jordan receives money.
This compensation structure is strange and unfair to shareholders. That’s why you don’t see other companies doing weird things like this.
Other companies simply give management restricted stock units and options that vest after a few years with strikes near current share prices. Why? Because these compensation strategies align management interests with shareholder interests. Management makes money when shareholders make money.
That’s just one way management is compensating themselves. They also have:
1) their purchases of convertible debt that converts to shares at DEEP discounts. This is dilutive to shareholders. It’s also unusual.
2) share-based comp. This is normal.
3) a licensing agreement where management received $200k/yr + 7.5% of sales in royalties. This is incredibly unfair to shareholders. 7.5% is a massive royalty. Many companies don’t even have 7.5% operating margins. This is also very strange. I’ve never heard of a company licensing IP from management before.
Tautachrome is structured so that common shareholders bear the costs (cash burn, dilution) of this business while management, the “consultants” and Jordan are compensated regardless of the performance of the company. These people all get paid 1) before common shareholders and 2) regardless of performance.
To fix this:
1) Eliminate the licensing agreement and transfer IP to Tautachrome.
2) Stop using Honeycomb and hire employees.
3) Compensate management with common shares and stock options vesting in 3+ years with a strike that is OTM. No more purchasing convertible debt that converts at deep discounts.
This resolves most of the conflicts of interest between management and shareholders. Management won’t address any of these issues because they are currently benefiting from the status quo at your expense.
"I made money on this company, so it's a good investment," is a bad argument. Are you familiar with the concept of a zero-sum game? Well penny stock investing is actually a negative-sum game. There's nothing wrong with participating in this, and congratulations on being good at it. However, this means that, in aggregate, penny stock investors will lose money.
There are investors who know this and investors who don't. Investors who know this just want someone else to pay more for their shares than they themselves paid for those shares. This idea is called "Greater Fool Theory."
In the stock market, the greater fool theory applies when many investors make a questionable investment, with the assumption that they will be able to sell it later to "a greater fool". In other words, they buy something not because they believe that it is worth the price, but rather because they believe that they will be able to sell it to someone else at an even higher price.
You won’t make money if you ride this all the way back to zero. This is like a gambler bragging about his gains after hitting on a slot machine. It’s time to take your chips and cash out.
You can say it but such an individualized remark as that can't be applied to a "financial community." Sounds very important though almost.
I think it's fair to say that people buying OTC stocks in general don't care about valuation, but this is completely insane. I can tell you that the finance community in general doesn't even know how to make sense of this recent activity. Like I assumed that people were just buying these tickers in the hope of selling them to someone else for a higher price, but now I'm seeing people argue that some of these companies are actually worth these insane valuations. I think we are getting a lot of traders in $TTCM right now.
At .02, $TTCM is worth 25% as much as Nextech despite having 0.007% of the TTM revenue of Nextech. This makes sense because we live in clown world.
There are huge amounts of money sloshing around. Lots of retail investors drawn in by the $GME craziness. That’s why we’re seeing companies that haven’t even filed a 10-Q in the last year up >500%. Nasdaq companies like Sundial and Naked Brands trading at 30x sales. OTC companies like $MMEX reaching values large enough to be included in small cap indexes. This money will be soaked up by insider selling, secondary offerings, shelf registrations, etc. Sundial just filed for a $1 billion shelf registration. This is a testament to just how much retail money is out there right now. It’s not surprising at all that some of it is finding its way into $TTCM. Don’t mistake retail investor gambling for improving fundamentals in this company. It’s still a zero. We just don’t know what path it takes to get there.
His argument was supported by the mathematical reality of the OS limit discussed in the past, so "likely" is appropriate here.
Likely = Very high chance of being true. In other words, not false.
Has Tautachrome sold a single memorial ark yet? Is there any evidence anyone even wants a memorial ark? I know some graves have a QR code that people can scan to read more about someone's life, but the entire memorial Ark idea doesn't really even make sense.
I don’t remember anyone ever buying an app with almost no revenue and almost no users for billions. Anyone who wants to build an app like Arknet could do so for a couple hundred thousand. Why would a company bother paying $30 million for Tautachrome when they could just hire their own developers and spend $200k to get the same result.
You’re right. I don’t get it. I don’t get it because I’ve never seen something like this before. That’s why I’m asking for someone who does get it to explain why this is the only company I’ve ever seen with a compensation scheme that enriches management at the expense of shareholder like this.
Every time I ask this question I get responses but not answers. Everyone wants to dismiss the question, and nobody wants to respond to it.
I didn’t get an answer. Tautachrome management is doing something strange that I’ve never seen another company do. I think that’s interesting and worthy of discussion. After a year of asking the same question, nobody has been able to explain why this bizarre scheme exists.
Do you know of any other companies that have a licensing agreement with their management teams?
Can you show me another example of an agreement of this kind? If this is normal and good, why is Tautachrome the only company I've ever seen doing this?
If this were really a good business it wouldn't be public. It would be funded by a venture capital firm. Or Jordan would have bought it instead of buying Honeycomb.
I don't know what else to call it when management is using a licensing agreement to enrich themselves at the expense of shareholders. I can't name another company with a licensing agreement like this, and I actually work in finance. Can you name one?
Here's your weekly reminder that Nextech AR was founded more recently than Tautachrome and will have revenue of ~$13.5 million this year. It will likely grow revenue by >100% next year. It's listed on the Nasdaq. It has actual employees. It has actual contracts with customers instead of "agreements" and "partnerships". Their CEO and COO don't have a compensation scheme whereby they receive 7.5% of sales in royalties. I also don't believe that they have a chat room where investors send management cat gifs.
This is what a real company with real employees, real products and a real management team look like. The results speak for themselves.
0.10 would make Tautachrome more valuable than Nextech. Nextech has millions in quarterly revenues and 100+ employees. It's listed on the Nasdaq.
Not yet. Not when complete garbage like MMEX has a $200 million market cap. I think anything is possible in the next few weeks. Nothing has changed about any of these businesses, and most (including Tautachrome) are still worth $0.
Facebook started with a guy who could actually write code.
So what's your take on the bizarre volume patterns?
It's really weird that shareholders seem to think that there are all these people using this when it's really just their little group. I'd be shocked if ARknet has >300 active users. There are only like 15-20 people active in the Telegram chat room, and I see the same people again and again on Twitter.
And why did it begin all of a sudden on Friday? There was no gradual increase in volume. $TTCM volume had been <10 million/day for months and then all of a sudden we're seeing >10 million in the first 30 minutes of trading. You'd also expect some more price movement off 30 million in volume. We were seeing some pretty big moves off of <10 million in volume, but the 15 million in volume this morning moved the price ~1%. It's as if some people are just trading back and forth at the same price all day.
As long as Tautachrome doesn't commit to anything specific, it can't be criticized for failing. That's the plan here. Just keep throwing out random updates to the app to keep the True Believers on board. The True Believers will continue buying shares. DLM and Jon can keep making money through their share based compensation and those ridiculous royalties. Jordan can keep getting paid via Honeycomb. Common shareholders can continue to hold onto the belief that they're just one "official launch" away from retiring on that beach they've been dreaming about for four years now. Everyone is happy.
And just like that everyone has forgotten about the gigantic mess that is Main St. Shopping. No more tough questions for DLM about why we can count the number of businesses actually selling items on the platform on one hand. No more questions about why Tautachrome was issuing press releases promoting Main St. Shopping five months ago but is now claiming that the platform hasn't "officially launched". No more questions about why they would bury their e-commerce platform inside an app.
Any increase in the share price will be very short-lived and based entirely on speculation. This will be your chance to get out. There is a ton of money flowing into the OTC right now from people who clearly don't understand that they're buying complete trash.
The app is just spectacularly bad. Even the faithful can't understand how to use the ARknet "social media" features.
What's going on in the broader OTC right now? I'm seeing all kinds of stocks up 100%+ over the last few days. Some of these companies haven't filed a Q or K in years and appear to no longer be operating. Yet their shares have increased dramatically.
Where is the revenue from selling Arks? That was supposed to begin generating revenue like two years ago. What's the deal with Boston University? Still no update on that. I just can't understand how people can take a look at their track record and still think, "Yeah I'm gonna give this company the benefit of the doubt."
Went on to state this will be released in the next few weeks.
This is desperate. I get it. This isn't the finished product, but this is so incredibly bad that it doesn't even make sense to release it to shareholders. People were struggling to understand how to even follow(?) other users.
And what does this mean for Main St. Shopping? Is the development team no longer working on it? Is half the development team working on Main St. Shopping and half on ArkBook? Did Honeycomb hire new guys to work on this?
The share price is down because each of these ridiculous attempts to instill confidence in investors is having the opposite effect on everyone except the True Believers.
I have no doubt this company will still be around in a few months. I think it still has at least another year in it.