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clawmann:
"there does not appear to be any rational reason for the blood-letting"
So, do you have reason to believe that management can find the rabbit-in-the-hat to pull out that will negate the upcoming $25MM (and increasing daily) balloon payment they may owe to the purchased subsidiaries due to the guarantees afforded them?
Serious question, and one I have been pondering now, perhaps a bit too late it would seem. :(
jonesie
Wow. Hung in at .14 for nearly an hour and a half.
Relatively few trades took it down to sub-.13, really fast.
Amazing, and ugly.
Gee, what a helpful post THIS was, eh?
Unreal.
jonesie
And, somebody whacked that entire SBSH bid.
Here's to a better week this week!
C'mon NEOM, let's see some really GREAT SHAREHOLDER FRIENDLY NEWS!
jonesie
SBSH finally seems to be on the bid side a bit heavy.
Seemed like most of last week they were heavy on the ask side.
FWIW, probably not much lol
jonesie
drmyke,
I didn't say NEOM needs more time (I mean, they obviously DO need more time to make money, but that's a different subject), I was talking about a VERY short time frame when I said over time we'll see what the market thinks of that 10Q and prospects relative to the current PPS, like over the next few days or so after it came out. One day just isn't enough to tell for sure, know what I mean?
I was implying that the market may like NEOM a lot less than fourteen cents worth.
Does that clarification of my comments help?
jonesie
Agreed on the meaningful PR YJ.
Profit-taking? That would only apply to those buying in, well, way back there.
Stopping the bleeding perhaps, by those in at higher prices.
IMO
jonesie
Nah, lower pps is only good for someone acquiring NEOM.
Only $84K worth of shares unloaded so far today.
Keep fingers crossed for double-bottom here at .14 before another run at .20 ;)
jonesie
MIKEE47:
That probably is a large concern of many shareholders or potential shareholders or ex-shareholders waiting to buy back in.
In addition to, or before, getting Qode out there and making money, it would be GREAT if the company would finish figuring out how/if they are going to negotiate their way out of that guarantee-jam they got themselves into with their subs ... and let us know! The unknown certainly does not instill much faith in buying, they need to get rid of a few freakin' unknowns LOL.
JMHO
jonesie
Who knows whether "they" are or aren't.
But that 10Q just came out recently, takes a while for all to digest, wait to see what happens, then act accordingly.
Over time, we'll get to see what the market for NEOM as a whole thinks of it.
Reminds me of that Warren Zevon song I may have mentioned before .. "It Ain't That Pretty At All".
jonesie
Rhetorical, momentary rant ...
It's pretty sad when $50K worth of shares trading can knock 6% off the market cap. of this supercompany in the making.
Okay, I'm better now.
Double-bottom at .14? That would be ... nice.
jonesie
NEOMROCKET, re: short interest:
http://www.otcbb.com/dynamic/shortinterest/shrt200607.txt
As of somewhere around mid-July I think.
Around 6.5MM shares
jonesie
YJ, et al, on that 675,000 share trade ...
My Fidelity ActiveTraderPro time & sales typically shows an average-price trade coded a particular way. No, it always shows it coded a particular way, with a W, even if the trade is printed after hours, it does not show it as an after hours trade. I see those all the time.
Similarly, it shows after hours trades coded another way.
On my platform that 675K trade is coded as an after hours trade, not an average price trade or settlement trade.
Is everyone sure that was a settlement trade of trades executed earlier in the day when the price was higher?
Just FYI and FWIW
jonesie
Simtek Announces Production Program on 1 Megabit nvSRAM for Sun Fire(TM) X4600 Server and Sun Blade(TM) 8000 Modular System
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BusinessWire
08:10 a.m. 08/10/2006
COLORADO SPRINGS, Colo., Aug 10, 2006 (BUSINESS WIRE) -- Simtek Corporation (SRAM), the inventor, pioneer, and world's leading supplier of nonvolatile static random access memory (nvSRAM) integrated circuits today announced that it has received production orders from Sun Microsystems, Inc. for its flagship 1 megabit nvSRAM, used for Sun's latest Sun Fire(TM) and Sun Blade(TM) x64 (x86, 64-bit) servers powered by AMD Opteron(TM) processors.
By taking advantage of Simtek's patented intellectual property and products, Sun is able to provide a RAID subsystem that doesn't require battery backed SDRAM that achieves smaller board space, lower component cost, and immediately stores system-critical volatile data under power loss conditions. Sun is leading the server industry in providing RAID storage as a standard feature by integrating RAID onto the server motherboard.
Cost and space are major impediments to full-featured, cost-attractive RAID solutions on the motherboard (ROMB). Current motherboard designs have little space for additional functions. New generations of RAID controllers integrate RAID and disk controller functions. Using battery-backed SDRAM adds cost and board space. New generations of integrated RAID controllers leverage Simtek's nvSRAM for write journaling and mirroring functions, and eliminate batteries. This makes it feasible to implement ROMB both economically and considering form factor. As an added bonus, using Simtek's products eliminates the battery and enables improved compliance with "green" initiatives reducing hazardous materials from board designs.
Simtek's nvSRAM, a critical cornerstone of server based RAID reference designs has been adopted by several generations of RAID controllers. This new production award solidifies Simtek's position as the leading provider of nonvolatile memory in the RAID market.
Hey, good point, webcast CC's are pretty common.
Companies I own stock in with far smaller scopes/potentials do that every quarter.
It would be good if NEOM would do that.
jonesie
Well, on the other side of a buy, there's always a sell ...
... but someone is buying at .152 and .153 in quarter million share chunks.
jonesie
gap filled.
About 435,000 shares took NEOM from .17 to .159.
Less than a $100K moving the stock's market cap 6%.
Now to see if the MM's are just messing with it, filling that gap, because they CAN ... or, if the 10Q is scaring enough people to set the share price back a good bit until the NEXT quarterly comes out and/or shareholders can see some good news, or a good way out of those share price guarantees.
Ugleeeee for now. Oops, and getting worse.
Oh well.
jonesie
Well, the gap up has nearly filled.
well icgreen, I'm not sure the act of their buying ...
... would have been enough to support the price to that degree.
But their selling was certainly a damper at the time, both by the downward pressure it put on the price, and the psychological impact that it had.
I'm sure I'm going to learn something new as all this plays out. I hope that it will be a very positive lesson.
:)
jonesie
OT: for those following (or in) the FHAL story, now CSHD ...
... it's still a little over a buck after the merger/symbol change effective this morning ... and posters over there are asking why it isn't $15/sh right now as the CEO "promised".
What a story! ;)
jonesie
Andrew, good point.
The fewer "to the moon"s the better.
I'm trying to read and understand, but I'm not all that great a fundamental guy, especially when it comes to talk about Preferred Shares, etc. I'm still trying to figure out if the market is going to look at what appear to be good margins, add that to the fact of increasing revenues (it would be nice to see what revenues were for all operating units were last quarter and last year so a valid comparison calculation could be made) and see when NEOM would get to breakeven and then beyond.
jonesie
Dang it, NEOM gapped up at the open.
So, unless this turns into a runaway "gap and go" situation ... odds say that gap is gonna fill.
When potentially good news comes out premarket like that, NEOM shareholders need a plan to avoid gaps, and here it is:
Some of you gazillions of shares shareholders need to put some one thousand share lots up for sale in .001 increments, starting at the previous days close price. Those transactions will of course trade and allow for a quick but measured pace up to whereever NEOM eventually trades.
Got that? ;)
jonesie
Wow, if THAT's the fact ... huge margins ...
... all NEOM needs then is increasing revenues to get past breakeven and then they will start PRINTING MONEY.
And I expect revenues would continue to increase on a daily/weekly/monthly basis from more and more new projects/contracts won by all operating units.
Is THAT what the market will focus on here shortly? Those huge margins? Is THIS when it starts?
Not pumping, hope it doesn't sound like that, just speculating a bit.
Tell you what, I won't count on market recognition happening this week, then I'll be very pleasantly surprised if it does ;)
jonesie
10-Q: NEOMEDIA TECHNOLOGIES INC
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Edgar Online
09:31 a.m. 08/09/2006
(EDGAR Online via COMTEX) -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
During 2006, NeoMedia has continued its efforts to commercialize its NeoMedia Mobile and NeoMedia Micro Paint Repair business units, both in North America and overseas. As part of the commercialization efforts, NeoMedia began to implement an aggressive growth campaign focusing on expansion through three major avenues:
To this end, during the second half of 2005 and the first half of 2006, NeoMedia made the following strategic maneuvers:
August 2005: signed agreement to distribute Micro Paint products to China via Jinche Automotive Group
September 2005: signed agreement to distribute Micro Paint products to Mexico and Latin America via Micropaint de Mexico
October 2005: signed agreement to distribute Micro Paint products to Scandinavia
via WITHO-AS
December 2005: signed agreements to distribute DuPont and PPG automotive aftermarket products to Jinche in China
February completed acquisitions of Mobot (US), 12Snap (Europe), Gavitec 2006: (Europe), and Sponge (Europe); signed letter of intent to acquire Hip Cricket; completed $22 million funding to finance acquisitions and future growth
March 2006: completed acquisition of BSD Software, creating the NeoMedia Telecom Services (NTS) business unit
July 2006: Signed agreement to work to introduce Qode technology into China through partner agreement
Acquisitions
During 2005 and the first quarter of 2006, NeoMedia has aggressively pursued acquisitions that will confirm its presence in the global mobile marketing space. To this end, during the three months ended March 31, 2006, NeoMedia completed, or agreed to complete, acquisitions of Mobot, Sponge, Gavitec, 12Snap, BSD, and Hip Cricket. It is the intention of NeoMedia's board of directors and management to continue to pursue strategic acquisitions in both its mobile marketing and the micro paint repair business units.
2006 Developments for New Acquisitions
Mobot
Mobot continued to build on its pioneering leadership of the mobile image recognition industry. Mobot announced an expanded relationship with Hachette Filipacchi Media and delivered a first-of-its-kind nationwide (U.S. & Can.) campaign for Starbucks.
ELLE Magazine, published by Hachette, is launching an interactive shopping program called EWish, based on Mobot technology and services. EWish allows readers to add products to their personalized web page by taking pictures of magazine advertisements and product images, and sending these to Mobot. Mobot servers catalog the requests and image recognition is used to link the correct products and content to the user's web page at elle.com. The premiere issue for EWish is October, 2006.
Starbucks Summer Pursuit is a mobile scavenger hunt that combines the use of text messaging and picture messaging to create a uniquely creative consumer experience. Users answer questions by using their camera phone to take and send a picture to Mobot. Mobot image recognition servers are then used to determine if the answer is correct. The solution also supports text based answers for non-camera phone users. The Mobot platform is used to deliver the entire mobile experience and game play. Consumers are playing for the chance to win a trip to Costa Rica, among other incentives and prizes.
Sponge
Sponge has continued to broaden its client base in the second quarter with an increasing range of products aimed at media groups, agencies and carriers. Media successes included increased activity for IPC magazines and News International. On the TV front Sponge ran its first promotions in Sweden and Norway for Big Brother. Sponge has also worked on a number of brand promotions, including: a major specialist motorcycle magazine; on-pack text-to-win mechanics for a major soft drinks brand to coincide with the World Cup as well as other drinks and confectionary brands.
Also launched was a pan-European, eight-country trade promotion for TaylorMade(R)-adidas(R) Golf incorporating a customized mobile phone solution to drive sales by incentivizing retail sales personnel. The Sales Incentive Text-to-Win application recognizes in-store staff by their account number and name included in an inbound SMS message, and automatically submits valid entrants into the next of a number of prize draws. In June, Sponge also reached agreement to supply marketing solutions to Vodafone for their customers.
At the recent Promotional Marketing Awards in the U.K., Sponge saw its agency partners win all but two of the awards for campaigns incorporating mobile marketing -- including the Best of Show 'Grand Prix' prize.
Gavitec
Gavitec continues to successfully market its Products in ScanCommerce (Exio / MD-20) and Enterprise Solutions (Lavasphere - the award winning technology turning cellular phones into code-readers) through mobile solutions partners to clients including McDonald's Portugal, Amnesty International, Malaysian Railways, World Soccer Games 2006, EMT (Empresa Malaguea de Transportes), a Spanish public transport company and Strer, an OOH (Out-Of-Home) Media Company. TopSolutions, a leading software development and systems integration house, is Gavitec's mobile solutions partner for McDonald's Portugal, which is running a large scale mobile-couponing program. EMT continued to run a pilot that gave EMT the distinction of being the first Spanish public transport company effectively and successfully using mobile ticketing. Through the use of Gavitec technology, EMT passengers are now able to pay for and receive bus tickets using their own mobile phones. Omniprime together with the Government of Malysia implemented Gavitec technology in the public transportation railways. In Kaiserslautern, Germany - one of the 2006 World Cup arenas - consumers could call for Beer (Bieralarm) while using a Gavitec-enabled solution provided by REA and Bitburger Beer. Gavitec optimized Strer sales-force and services using its Lavasphere product.
On the technological front, Gavitec furthered the development of its code-reading capabilities adding QR-Engine on JAVA to augment its existing DataMatrix technology on JAVA. Now, the engine will be downloadable via Internet or telephone connection to a considerable number of mobile phones, providing the opportunity to distribute the innovative software to a broader audience through business-to-consumer, mass market to incubate new applications.
12Snap
In the second quarter of 2006, 12snap again reached consumers far beyond its headquarters in Germany and offices in the UK, Italy and Sweden. Through campaigns for such high profile brand names as Adidas, Coca-Cola, Ferrero, and McDonald's, 12snap enabled millions of consumers throughout the EMEA (Europe, Middle East & Africa) region to participate in high-quality and entertaining mobile marketing campaigns. This scale and geographic reach also allowed 12snap to strengthen its technology to be compatible with the different carriers and handsets available in the EMEA. Additionally, new client wins such as Lufthansa helped to further strengthen 12snap's strong position among marketers who want to use the mobile phone as an effective and interactive marketing tool.
NeoMedia Telecom
NeoMedia Telecom is currently in the final stages of completing the successful transition of some of its key customers to a new Canadian Interchange (IXC) carrier network, which provides both 1010 dial-around and 900 service nationally. The company is already experiencing a positive impact from this transition in two ways: (1) several customers who were regional are expanding to a national billing strategy, and (2) NeoMedia Telecom has been able to reduce costs by moving from local exchange carriers (LEC's) to the new IXC, which is a non-tariffed (regulated rates) national network.
Consulting & Integration Services Business Unit
As part of the acceleration of global expansion in the Mobile and Micro Paint business units, as well as the creation of the NeoMedia Telecom Services (NTS) business unit through the BSD acquisition, NeoMedia also decided in February 2006 to wind down its legacy NeoMedia Consulting & Integration Services (NCIS) business unit. The NCIS unit consisted of client-server equipment and related software resales. The resale market has been commoditized over the past several years, and NeoMedia believes its resources are better spent on the development and commercialization of its NMM, NMPR and NTS business units. Certain of the proprietary products associated with the NCIS business, such as PDF-417 and Maxicode print encoder software and WISP migration tools, will be retained by NeoMedia and consolidated with the NMM unit. NeoMedia does not intend to pursue additional resales of hardware and software or integration services not directly related to its other business units.
Accounting Treatment of Series C Convertible Preferred Stock
In connection with the accounting treatment of the Series C convertible preferred stock sale, NeoMedia recognized a gain on derivative financial instruments of $11,025,000 and $15,794,000 during the three and six month periods ended June 30, 2006, respectively. The gain is due to the change in fair value of derivative financial instruments resulting from a decrease in NeoMedia's stock price from $0.389 per share on the date of the Series C convertible preferred stock sale (February 17, 2006) to $0.231 per share on June 30, 2006. The fair value of the derivative financial instruments at each measurement date correlates to NeoMedia's stock price at the same date. As a result, NeoMedia's net income varies significantly from its cash flow from operations during the three and isx months ended June 30, 2006. In future periods, NeoMedia's earnings could fluctuate dramatically from quarter to quarter if its stock price is significantly different from the stock price at the end of the previous measurement period. Because NeoMedia cannot guarantee that it has enough authorized shares to net share settle the Series C convertible preferred stock, the change in fair value of derivative instruments will be recorded to NeoMedia's statement of operations each reporting period until the Series C convertible preferred stock is fully converted.
Critical Accounting Policies
The United States Securities and Exchange Commission (the "SEC") issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" ("FRR 60"), suggesting companies provide additional disclosure and commentary on their most critical accounting policies. In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, NeoMedia's most critical accounting policies include: intangible asset valuation, which affects amortization and impairment of goodwill and other intangibles; financial instruments and concentrations of credit risk, which affects gains and losses from derivative financial instruments; allowance for doubtful accounts; inventory valuation, which affects cost of sales and gross margin; stock based compensation; estimate of litigation-based liability; and revenue recognition . NeoMedia also has other key accounting policies, such as policies for revenue recognition, including the deferral of a portion of revenues on sales to distributors, allowance for doubtful accounts, and stock-based compensation. The methods, estimates and judgments NeoMedia uses in applying these most critical accounting policies have a significant impact on the results it reports in its consolidated financial statements.
Intangible Asset Valuation. The determination of the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions. Determining the fair values and useful lives of intangible assets especially requires the exercise of judgment. While there are a number of different generally accepted valuation methods to estimate the value of intangible assets acquired, NeoMedia primarily uses the weighted-average probability method outlined in SFAS 144. This method requires significant management judgment to forecast the future operating results used in the analysis. In addition, other significant estimates are required such as residual growth rates and discount factors. The estimates NeoMedia has used are consistent with the plans and estimates that NeoMedia uses to manage its business, based on available historical information and industry averages. The judgments made in determining the estimated useful lives assigned to each class of assets acquired can also significantly affect NeoMedia's net operating results.
According to SFAS 144, a long-lived asset should be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The following are examples of such events or changes in circumstances:
- A significant decrease in the market price of the asset
- A significant adverse change in the extent or manner in which the asset is being used, or in its physical condition
- A significant adverse change in legal factors or in the business climate that could affect the value of the asset, including an adverse action or assessment by a regulator
- An accumulation of costs significantly in excess of the amount originally expected
- A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the asset
- A current expectation that, more likely than not, the asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
NeoMedia follows the two-step process outlined in SFAS 144 for determining if an impairment charge should be taken: (1) the expected undiscounted cashflows from a particular asset or asset group are compared to the carrying value; if the expected undiscounted cashflows are greater than the carrying value, no impairment is taken, but if the expected undiscounted cashflows are less than the carrying value, then (2) an impairment charge is taken for the difference between the carrying value and the expected discounted cashflows. The assumptions used in developing expected cashflow estimates are similar to those used in developing other information used by NeoMedia for budgeting and other forecasting purposes. In instances where a range of potential future cashflows is possible, NeoMedia uses a probability-weighted approach to weigh the likelihood of those possible outcomes. NeoMedia used a rate of 10% for purposes of discounting cashflows in 2006 and 2005.
Financial Instruments and Concentrations of Credit Risk. The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, notes payable, derivative financial instruments, other current liabilities and convertible preferred stock. Management believes the carrying values of cash and cash equivalents, accounts payable, accounts payable and accrued expenses, notes payable, and other current liabilities approximate their fair values due to their short-term nature. The fair value of convertible preferred stock is estimated on June 30, 2006 to be approximately $17,937,000.
The Company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments. However, certain other financial instruments, such as warrants and embedded conversion features that are indexed to the Company's common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within the control of the Company. In such instances, net-cash settlement is assumed for financial accounting and reporting, even when the terms of the underlying contracts do not provide for net-cash settlement. Such financial instruments are initially recorded at fair value and subsequently adjusted to fair value at the close of each reporting period.
The caption "Derivative Financial Instruments" consists of (i) the fair values associated with derivative features embedded in the Series C convertible preferred stock, (ii) the fair values of the detachable warrants that were issued in connection with the preferred stock financing arrangement, and (iii) the fair value of detachable warrants that were outstanding prior to the issuance of the Series C Preferred Shares..
Allowance for Doubtful Accounts. NeoMedia maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Allowance for doubtful accounts is based on NeoMedia's assessment of the collectibility of specific customer accounts, the aging of accounts receivable, NeoMedia's history of bad debts, and the general condition of the industry. If a major customer's credit worthiness deteriorates, or NeoMedia's customers' actual defaults exceed historical experience, NeoMedia's estimates could change and impact its reported results.
Inventory. Inventories are stated at lower of cost (using the first-in, first-out method) or market. NeoMedia continually evaluates the composition of its inventories assessing slow-moving and ongoing products and maintains a reserve for slow-moving and obsolete inventory as well as related disposal costs.
Stock-based Compensation. Beginning January 1, 2006, NeoMedia began to account for stock-based compensation in accordance with SFAS No. 123(R), Share-Based Payment. Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment, including estimating expected dividends. In addition, judgment is also required in estimating the amount of share-based awards that are expected to be forfeited. If actual results differ significantly from these estimates, stock-based compensation expense and our results of operations could be materially impacted. Stock-based compensation expense is calculated using the Black Scholes option pricing model on the date of grant. This option valuation model requires input of highly subjective assumptions. Because NeoMedia's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing model does not necessarily provide a reliable single measure of fair value of its employee stock options.
Estimate of Litigation-based Liability. From time to time, NeoMedia is defendant in certain litigation in the ordinary course of business (see the section entitled "Legal Proceedings"). NeoMedia accrues liabilities relating to these lawsuits on a case-by-case basis. NeoMedia generally accrues attorney fees and interest in addition to the liability being sought. Liabilities are adjusted on a regular basis as new information becomes available. NeoMedia consults with its attorneys to determine the viability of an expected outcome. The actual amount paid to settle a case could differ materially from the amount accrued.
Revenue Recognition. NeoMedia derives revenues from the following sources:
(1) Technology license fees, including Intellectual Property licenses, represent revenue from the licensing of NeoMedia's proprietary software tools and applications products. NeoMedia licenses its development tools and application products pursuant to non-exclusive and non-transferable license agreements. The basis for license fee revenue recognition is substantially governed by American Institute of Certified Public Accountants ("AICPA") Statement of Position 97-2 "Software Revenue Recognition" ("SOP 97-2"), as amended, and Statement of Position 98-9, Modification of SOP 97-2, "Software Revenue Recognition, With Respect to Certain Transactions.". License revenue is recognized if persuasive evidence of an agreement exists, delivery has occurred, pricing is fixed and determinable, and collectibility is probable. The Company defers revenue related to license fees for which amounts have been collected but for which revenue has not been recognized in accordance with the above, and recognizes the revenue over the appropriate .
(2) Technology service & product revenue, which includes sales of software and technology equipment and service fee is recognized based on guidance provided in SEC Staff Accounting Bulletin ("SAB") No. 104, "Revenue Recognition in Financial Statements," as amended (SAB 104). Software and technology equipment resale revenue is recognized when persuasive evidence of an arrangement exists, the price to the customer is fixed and determinable, delivery of the service has occurred and collectibility is reasonably assured. Service revenues including maintenance fees for providing system updates for software products, user documentation and technical support are recognized over the life of the contract. Software license revenue from long-term contracts has been recognized on a percentage of completion basis, along with the associated services being provided. Telecom revenues are recognized at the time that calls are accepted by the clearing house for billing to customers. The Company's recently acquired subsidiaries BSD, Mobot, and Gavitec follow this policy. The Company defers revenue related to technology service & product revenue for which amounts have been invoiced and or collected but for which the requisite service has not been provided. Revenue is then recognized over the matching service period.
(3) Technology service also includes mobile marketing services to its customers which mobile marketing projects are recognized after the completion of the project and accepted by the customer. All response and messaging based revenues are recognized at the time such responses are received and processed and the Company recognizes its premium messaging revenues on a net basis based on guidance provided in Emerging Issues Task Force Issues No. 99-19 (EITF 99-19), "Reporting Revenue Gross as Principal or Net as an Agent" and No. 01-09 (EITF 01-09), "Accounting for Consideration Given by a Vendor to a Customer." Consulting and management revenues and revenues for periodic services are recognized as services are performed. NeoMedia uses stand-alone pricing to determine an element's vendor specific objective evidence ("VSOE") in order to allocate an arrangement fee amongst various pieces of a multi-element contract. The Company's recently acquired subsidiaries 12Snap and Sponge follow this policy. The Company defers revenue related to mobile marketing service fees for which amounts have been invoiced and/or collected but for which revenue has not been recognized. Revenue is then recognized over the matching service period.
(4) Revenue for training and certification on NeoMedia's Micro Paint Repair systems is recognized equally over the term of the contract, which is currently one year. A portion of the initial fee paid by the customer is allocated to training costs and initial products sold with the system, and is recognized upon completion of training and shipment of the products, provided there is VSOE in a multiple element arrangement. Ongoing product and service revenue is recognized as products are shipped and services performed. The Company defers revenue related to micro paint repair training and certification for which amounts have been invoiced and/or collected but for which revenue has not been recognized. Revenue is then recognized over the estimated contract period, which is currently one year.
In December 2003, the SEC issued SAB 104, "Revenue Recognition." SAB 104 supersedes SAB 101, "Revenue Recognition in Financial Statements." SAB 104's primary purpose is to rescind accounting guidance contained in SAB 101 related to multiple element revenue arrangements, superseded as a result of the issuance of EITF 00-21, "Accounting for Revenue Arrangements with Multiple Deliverables." Additionally, SAB 104 rescinds the SEC's Revenue Recognition in Financial Statements Frequently Asked Questions and Answers (the "FAQ") issued with SAB 101 that had been codified in SEC Topic 13, Revenue Recognition. Selected portions of the FAQ have been incorporated into SAB 104. While the wording of SAB 104 has changed to reflect the issuance of EITF 00-21, the revenue recognition principles of SAB 101 remain largely unchanged by the issuance of SAB 104, which was effective upon issuance. The adoption of SAB 104 did not impact NeoMedia's consolidated financial statements.
Income Tax Valuation Allowance. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be recognized. The Company has recorded a 100% valuation allowance as of June 30, 2006 and 2005.
Foreign Currency Translation. The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets as "Accumulated other comprehensive income
Stock-Based Compensation
NeoMedia adopted Statement of Financial Accounting Standards No. 123 ("SFAS 123R") on January 1, 2006, using the prospective method for stock option grants prior to January 1, 2006 and the modified-prospective transition method for stock option grants and restricted stock issued after January 1, 2006. As a result, the unamortized compensation expense from stock options granted prior to January 1, 2006 is not included in the statement of operations. SFAS 123R requires all share-based payments to employees to be recognized in the income statement based on their fair values. Under the modified-prospective transition method, compensation cost recognized for the three and six months ended June 30, 2006 includes: (a) compensation cost for all share-based payments granted, but not yet vested as of January 1, 2006 based on the grant-date fair value estimated in accordance with the original provisions of SFAS 123, and
Prior to January 1, 2006, NeoMedia accounted for its stock-based compensation plans under the intrinsic-value method prescribed in Accounting Principles Board Opinion No. 25 "Accounting for Stock Issued to Employees," ("APB 25") and . . .
Aug 09, 2006
Thanks for posting, revenues are up.
I suppose we would have expected revenues to be up since all units are now included in the Q report.
I'm kinda dumb when it comes to fundamentals, and I hope this isn't just a straight-line setup for a basher to jump on LOL, but ... the losses from operations, do they make sense? They sure seem high.
Geez, I hate asking stupid questions.
jonesie
QCURT, I got that one too, yay! :) eom
Might be getting close to time for a run to .90 or so?
Weekly shows a very bearish descending triangle, charts like this are a dime a dozen out there:
CNBC 'On the Money' Profiles Ckrush's LiveMansion.com
----------------------------------------------------------------
PRNewswire
3:48 p.m. 08/07/2006
Program Reports How Ckrush is 'Directly Reaching' its Audience
NEW YORK, Aug 07, 2006 /PRNewswire-FirstCall via COMTEX/ -- Ckrush, Inc. (CKRH), a cutting-edge media group capitalizing on the convergence of entertainment and digital technologies, has announced that the CNBC program "On the Money" profiled Ckrush's LiveMansion.com on Friday August 4, 2006 at 7pm EDT. The program highlighted Ckrush's groundbreaking concept, "LiveMansion: The Movie," the first feature film to be developed and cast by an online community. "On the Money" identified Ckrush as an innovator "bypassing Old Hollywood" and "directly reaching their audience."
The program stated Ckrush has created in LiveMansion an on-line social network, with social networks being the "new go to place to reach fans". "LiveMansion: The Movie" is the first film produced online by a social networking community, whose members will play major decision-making roles in the project, including casting the film and choosing the director. The movie concept begins on LiveMansion.com, a fully interactive social networking site with unique user-personalized home pages where members can edit profiles, post pictures and blogs, receive mail and keep a detailed list of friends. Members can create their own virtual mansion with dozens of rooms that explore their interests with other like-minded members, all in real time.
"Our initiatives continue to attract interest," said Jeremy Dallow President of Ckrush. "We believe strongly that Ckrush is at the forefront of the convergence of social networking and entertainment."
Ckrush will have a link to the program posted on both www.LiveMansion.com and www.Ckrush.net as soon as it is made available.
Just for fun, check out the LOUD buyout by Nokia.
Quite the gap.
jonesie
Just curious, has anyone asked PP ...
... why he never mentions NEOM?
It's probably been posted and I missed it, so, sorry.
TIA
jonesie
Chart has been very telling so far ....
... gaps have filled, double-tops have been tops, 6.5x likes to get tested, descending triangle seems to be the overriding pattern.
Going to make it to a triple bottom?
JMHO -jonesie
That's very cool, thanks for the link.
And BREACHER ...
... in some stocks where there is extremely high and stable insider ownership, and even where there is some knowledge of other shareholders who hold significant shares and are NOT selling, one can mentally reduce the float by those amounts and come up with a relatively small number as the "tradeable" float. I am currently in such a stock where the trading float is probably as little as 20% of the real float due to 51% insider ownership and probably another 30% truly "tightly held".
FWIW
jonesie
Shareholder Letter July 31, 2006
Dear Shareholder:
First, save Saturday, October 28 for our 2006 Annual Shareholder meeting to be held in Bakersfield at the Petroleum Club, 5060 California Avenue, 12th floor from 9AM-12PM. We will plan field trips to the Temblor Valley property to see drilling operations and the rig yard at 220 Industrial Street. Please contact Felicia Todd at our office for information including hotel rooms.
We now have eight production rigs, five of which are being refitted to drill wells ranging from 2,000 feet to 8,000 feet. We re-worked a few of the wells at Temblor Valley west but then assigned the crews to 220 Industrial to help speed up the re-fitting of Rig 103 to drill since the big strides in production/revenue increases will come from drilling new, virgin wells. Great Valley Production Services LLC, our work production rig subsidiary, wants to do that at Temblor as often as possible to build returns for shareholders and project investors.
We expect to make the final acquisition payment on the Nevada drill rig in the next few weeks as it completes its present drilling job. Then, Great Valley Drilling Co. LLC, our new drilling subsidiary, takes over that rig. In the near term it will remain in Nevada to work at premium rates.
The staff has been strained by starting up two new operating subsidiaries in addition to its usual duties, and we are very actively recruiting to give Joe assistance in these new responsibilities on the oil and gas side.
On the minerals side, our executives have been very busy helping the American subsidiary of a Canadian company go public on the Toronto Stock Exchange in a scenario similar to what we foresee for our minerals subsidiary, Select Resources Corporation. We expect this experience will enable us to better prepare Select for that eventuality.
Tri-Valley continues to expand its domestic oil and gas leases and prospects with the belief that these commodities can only appreciate in value. This value will be added at a substantial rate as the Company resumes drilling this year. As we advised in January 2005, we have made significant investments forward of revenues which has created operating losses. And, we are still making investments in the rig fleet before all can be put to work. However, as we drill development wells and put our rigs to work, our revenues will increase to restore profitability to demonstrate the validity of those investments to build share value and returns to our project partners.
Very truly yours,
F. Lynn Blystone
President and CEO
Shareholder Letter July 31, 2006
Dear Shareholder:
First, save Saturday, October 28 for our 2006 Annual Shareholder meeting to be held in Bakersfield at the Petroleum Club, 5060 California Avenue, 12th floor from 9AM-12PM. We will plan field trips to the Temblor Valley property to see drilling operations and the rig yard at 220 Industrial Street. Please contact Felicia Todd at our office for information including hotel rooms.
We now have eight production rigs, five of which are being refitted to drill wells ranging from 2,000 feet to 8,000 feet. We re-worked a few of the wells at Temblor Valley west but then assigned the crews to 220 Industrial to help speed up the re-fitting of Rig 103 to drill since the big strides in production/revenue increases will come from drilling new, virgin wells. Great Valley Production Services LLC, our work production rig subsidiary, wants to do that at Temblor as often as possible to build returns for shareholders and project investors.
We expect to make the final acquisition payment on the Nevada drill rig in the next few weeks as it completes its present drilling job. Then, Great Valley Drilling Co. LLC, our new drilling subsidiary, takes over that rig. In the near term it will remain in Nevada to work at premium rates.
The staff has been strained by starting up two new operating subsidiaries in addition to its usual duties, and we are very actively recruiting to give Joe assistance in these new responsibilities on the oil and gas side.
On the minerals side, our executives have been very busy helping the American subsidiary of a Canadian company go public on the Toronto Stock Exchange in a scenario similar to what we foresee for our minerals subsidiary, Select Resources Corporation. We expect this experience will enable us to better prepare Select for that eventuality.
Tri-Valley continues to expand its domestic oil and gas leases and prospects with the belief that these commodities can only appreciate in value. This value will be added at a substantial rate as the Company resumes drilling this year. As we advised in January 2005, we have made significant investments forward of revenues which has created operating losses. And, we are still making investments in the rig fleet before all can be put to work. However, as we drill development wells and put our rigs to work, our revenues will increase to restore profitability to demonstrate the validity of those investments to build share value and returns to our project partners.
Very truly yours,
F. Lynn Blystone
President and CEO
Interesting bid/ask action
.18 bid gets whacked on a bit, so it drops to .176, nobody bites yet.
.182 ask gets no takers at that point ... so they raise it back to .184.
Yeah, that makes sense LOL
jonesie
personalizit, yeah, making money will be good ...
... meanwhile, there has to be some exposure from this, well, you know that. Who knows what could come of it.
Maybe today won't be the typical "nice news of progress or new deal, PPS down".
jonesie
NeoMedia's Sponge Subsidiary Provides Mobile Application for U.K. Company 'One'
--------------------------------------------------------------------------------
BusinessWire
08:44 a.m. 08/03/2006
FORT MYERS, Fla., & LONDON, Aug 03, 2006 (BUSINESS WIRE) -- Mobile marketing specialist Sponge, a division of NeoMedia Technologies, Inc. (NEOM), is providing its "text to win" application for an international mobile promotion staged by One (brand) bottled water ( www.onewater.org.uk ) to bring clean water to Africa.
One Water is an example of "ethical" (cause-related) marketing that is gaining considerable momentum in the U.K. and elsewhere in the Western world. All the profits from sales of One Water - which is sold at leading U.K. retailers including Waitrose, Morrisons, Co-Op and Total - go to building unique roundabout PlayPumps overseas, which will improve people's lives by providing free, clean water for drinking, cooking, and washing.
One supports the Roundabout charity ( www.roundabout.co.za ), which installs PlayPumps in African villages, replacing traditional hand pumps. PlayPumps work through the rotational movement created by children playing on them, much like a merry-go-round. As the children play, the merry-go-round drives a pump to extract water, which is then channelled into large storage tanks. The PlayPumps are so efficient, that there is usually excess water available for irrigation purposes, which was not possible with hand pumps.
NeoMedia's Sponge became involved when One Water approached the London-based leader in mobile marketing applications and content delivery for help with its summer promotion -- to win a trip to Africa, said Jessie Britton of Sponge. "NeoMedia and Sponge were delighted to support this important cause by donating our expertise and giving One Water full access to our 'Text to Win' mobile interactivity, to help them build brand awareness and conduct their promotion," she said.
The grand prize in the promotion is a trip to Africa, where the winner will help build and install a roundabout PlayPump. The August through October promotion is featured on 1 million-plus bottles of One Water, a national outdoor advertising campaign, an online campaign, and e-mail.
One Water founder Duncan Goose credits Sponge with "providing the finishing touch we needed for this promotion. We approached Sponge because of the company's fantastic reputation in handling high traffic promotions, and we were delighted when they not only agreed to work with us, but also donated some very valuable marketing support."
Martin Copus, COO of NeoMedia and president of its mobile business unit, said, "It is exciting and worthwhile to see mobile technology being used to help improve people's lives in this way. We salute the wonderful initiative of One Water and their partner Roundabout."
About Sponge Ltd.
Sponge, a NeoMedia Technologies company (NEOM), is the U.K. market leader in providing mobile applications to agencies and media groups, and has gained recognition as one of Europe's top independent developers of mobile applications and content. Founded in 2001, Sponge counts among its clients more than 40 agencies, including WPP, Aegis and BBH, and supplies services to over 100 world-class brands, including Coca-Cola, Heineken, Diageo, Walker's and Lynx/Axe. Sponge also supplies a range of mobile services to media groups, including News International, Trinity Mirror, Endemol and IPC. For more information, visit www.spongegroup.com
OT: beigledog, congrats on the Daily Win!
jonesie
Every time CKRH double-tops it goes down.
Some serious volume the last two days, but the double top had me booking +50% profits from low .20's on about half my shares today.
Let's see what happens next! I'm thinking it's going to take some $$ on the bottom line from those films to seriously impact the share price further, and there are NO dates for release at the moment, at least that's what I heard in the Conf. call the other day.
jonesie
Nice move today!
Back on 7/24 I thought if CKRH can break out above .31 on volume we could see a run to at least .50 perhaps.
Today was a start?