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.
Weo
My posts have been facts from the company's SEC filings. It is what it is - A $.30 stock for a number of years. If the PR's were sales in the millions vs $100K then nothing would hold the stock back.
Internet chat boards do not drive the stock price - company performance or lack thereof does.
Weo
More name calling? Awful just awful - Bill collectors calling and alot of stress in your life? A mind is a terrible thing to waste...
You are the Mr Potter from "It's a Wonderful Life" - a frustrated old fool....
Hope things get better for you in your life and you get some help.
$100K Utah sale - A PR?
The sad thing IMO is the company issues a PR for a $100K sale? You would think a PR would be reserved for at least a sale of at least $1M.
12/31 is only a month away - let's see who's estimate is nearest the actual.
Paul don't get frustrated with Weo he has always been frustrated with life and always lashes out at anyone not in agreement with him.
Be well
Greg
The quickest way to find out is wait for the year end 12/31 SEC filing which is audited and all inclusive with full disclosure. Won't be issued until 3/15. The quarterly filings are abridged and unaudited.
From the filing
New loan for $240K due 12/23/04
As of September 30, 2004, our liquidity position was extremely precarious. We had current liabilities of $10,079,270, including $6,612,076 in obligations under the lease financing for the old Ferris Productions virtual reality systems, $827,494 in accounts payable, and short-term notes payable of $1,787,852, some of which were either demand indebtedness or were payable at an earlier date and were in default. As of September 30, 2004, there was only $494,511 in current assets available to meet those liabilities.
To date we have met our capital requirements by acquiring needed equipment under the Ferris non-cancelable leasing arrangements, through capital contributions, loans from principal shareholders and officers, certain private placement offerings, and through our convertible debenture and equity line financing with Dutchess Private Equities Fund, L.P.
For the nine months ended September 30, 2004, our net loss was $(1,275,379). After taking into account the non-cash items included in that loss, our cash requirements for operations were $964,645. In addition, we made capital expenditures of $78,649 and repaid notes in the amount of $140,901. To cover these cash requirements, we used existing cash, borrowed $240,000 on a promissory note, and issued 3,437,607 shares of our common stock under the Dutchess equity line, for net cash proceeds of $932,609.
The opinion of our independent auditor for the year ended December 31, 2003 expressed substantial doubt as to our ability to continue as a going concern. We will need substantial additional capital or new lucrative custom application projects to become profitable. In July of 2002, we entered into a financial contract with Dutchess Private Equities Fund, L.P. Under this arrangement, Dutchess is to purchase up to $5 million of our common stock over the next two years under an equity line. The number of shares we may sell to Dutchess is based upon the trading volume of our stock. Dutchess and several other investors also participated in a private placement of $450,000 in convertible debentures, which has been repaid in full. We recently borrowed an additional $240,000 from Dutchess on a promissory note, to be repaid in full on or before December 23, 2004. Based on recent increases in the stock's trading volume following our entry into the training/simulation market, management believes that this equity line will allow us to continue our operations for at least the next twelve months.
However, operations will require the continued forbearance of the holders of various notes and equipment leases that are currently in default. On November 9, 2004, we forwarded to the holders of our old Ferris equipment leasing arrangements, and to our old GameCom promissory noteholders, an exchange offer, under which these leaseholders and noteholders may convert their leases and notes to shares of our common stock. If our proposal is accepted by 85 percent in interest of these leaseholders and noteholders, it would eliminate approximately $7,800,000 of liability from our balance sheet, save us approximately $225,000 in accrued interest per quarter, and make it much more likely that we could conclude on acceptable terms an offering of our common shares in the public market, or attract investment capital on acceptable terms.
However, there can be no assurance that we will achieve the required 85 percent approval by the exchange offer's stated termination date of November 30, 2004.
Greg
You said: "They should also make around 4 million this year."
Walk me through that P&L if you would be so kind.
Thank you
All
Read the SEC filing - they are the facts. Kelly will not tell you the ship hit the iceberg - the band will play on...until......
The end of year audited filings are all inclusive.
Greg
Pleasse - click on the fact sheet with the nice bar graphs etc I have been quoting from all of 2004. It was issued 12/03. The $6.5M and $1.5M net Inc is still there today.
Looks like the website has 2 estimates - the old and the revised down to $4M....
Book mark the page? I only need to read once and with a new website you would think mgmt would not send such conflicting info...
Cash
What cash? If you look at the liabilites there is $34K in book overdraft. They went into debt just to try to pay the light bill and meet payroll IMO...
Greg
Yes they did..
In 12/03 in the investor publication the estimate for 2004 was revenue $6.5M and Net Income $1.5M
Actual as of 9/30
Revenue $1M
Loss $(812K)
Ouch
Hound
You said: "We do have the best product in an environment that really needs this type of training." Based on what? If that was the case there would be more than $350K in sales
Kitchen has been on board almost a year - time for him to earn his keep don't you think?
Longer than expected David aka Sir Felix has been waiting 7 years.....
Fool
A loss of $217K is a small loss for IBM not Vitra on sales of $350K. I thought the revenue was going be over $1M for the qtr. What happened???
Revenue $1M for 9 mos to date - so much for $6.5M for 2004.
Board - how will the market react to the results?
Greg
I know you mean well but "broke even"? Missed targets again...time for MNF. Greg - I do not understand how you make assessments before reading the filing. The reason the EPS is zero cents per share is because there are so many shares outstanding.
Red Ink is never a good thing
Take care
David
Wow - 7 years???? Now that is patience - just think if it was in a mutual fund at an average 13% compounded over that time. I know I know you it's either a strike out or a home run! I hope you get the home run. A moon shot like David Ortiz!
Trout
I don't believe I said that but you do as you see fit - lmao
Paul
You continue to make sense...the value of the offer went down today no mater how you slice it...
Weo
The stock went down 13.5% after the S-8 was released - my assessment was "the market was reacting badly".
What is your assessment?
David
In the whole scheme of things the 1 year option at 47% is probably better as today they haven't paid since 2001 and they have the opportunity for the shares to appreciate as you stated
The leaseholders are being offered principal only no interest.
They have not been paid since 2001 and and they get offers of of 23%, 35% and 47% of the principal. They are getting screwed which is why the market is reacting badly.
QUESTION WHAT HAPPENS IF THEY REJECT THE OFFER?
Option A, the holder will receive shares having a current market value of 23.4 percent of the principal amount he or she is owed, and will not be required to lock upany of the shares he or she receives in the exchange. Under Option B, each holder will receive shares having a current market value of 35.1 percent of the principal amount he or she is owed, but he or she must agree not to sell any of those shares for a period of six months, after which they become salable in six equal monthly installments. Under Option C, each holder will receive shares having a current market value of 46.8 percent of the principal amount he or she is owed, but he or she must agree not to sell any of those shares for a period of one year, after which they become salable in six equal monthly installments. In each case, the holder will forego all accrued interest.
So much for Kelly paying them back in full
Other Events
Item 8.01 Other Events.
On November 9, 2004, we mailed to holders of $885,531 in principal amount of our outstanding promissory notes, and $4,489,000 in principal amount of our financing equipment leases issued in 1997 through 2001, an offer to exchange those notes and leases for shares of our common stock. We have not made any payments on the leases since October of 2001, and have never made any payments on the promissory notes. We are not in a position to repay our obligations to these security holders.
Each holder may choose from one of three options for the exchange. Under Option A, the holder will receive shares having a current market value of 23.4 percent of the principal amount he or she is owed, and will not be required to lock upany of the shares he or she receives in the exchange. Under Option B, each holder will receive shares having a current market value of 35.1 percent of the principal amount he or she is owed, but he or she must agree not to sell any of those shares for a period of six months, after which they become salable in six equal monthly installments. Under Option C, each holder will receive shares having a current market value of 46.8 percent of the principal amount he or she is owed, but he or she must agree not to sell any of those shares for a period of one year, after which they become salable in six equal monthly installments. In each case, the holder will forego all accrued interest.
We will not be obligated to accept any of the securities for exchange unless at least 85% in principal amount of these obligations accept the exchange offer. The offer expires on November 30, 2004.
David
I respectively disagree with your opinion that VTSI mgmt's negotiating position on the leaseholder resolution is "take it or leave it".
The leaseholders are owed their money in full and VTSI mgmt is not negotiating from a position of strength IMO. The word negotiate by definition means give and take.
If the company does not offer an agreeable amount to the leaseholders then their alternative is to sue for the amount and I do not think Kelly wants that either.
Kelly in the spring stated wanted resolution by the end of Q3 -September then he said end of October. Now the proposal is just being presented to the the debtholders in November. I believe much negotiation has already taken place and the proposal is the result of the negotiation.
Time will tell...
Trout
Different guy Trout - my alias on Yahoo is Bylocellhi as well not buylow.sellhi...someone who stole his/her alias from me but could not duplicate it - lol
Your friend Bylo
Fool
I think I just read an Algebra word problem...lol
Good luck
OT - It does not get any better than this!!!
http://www.boston.com/sports/baseball/redsox/articles/2004/10/28/champion_red_sox_meet_cheering_fans...
The Red Sox win the World Series and we went through the Yankees!!!!!
The last 3 replies to Atkinson's post
Now this is what the message board is for!!!!
"This is a bigtime INVESTMENT for me!!!" Yeah man I agree - invest $100K - it's going to the moon!
"VTSI is not your typical OTC company though.VTSI is on the verge of being 2-3 dollars IMO." Everyone buy now as this is a buying opportunity - stock is on sale!!!
"When it happens is anybody's guess, but look at all the positive things that are happening. We will make it."
Yeah look at all the positive things happening - take out a second mortgage - retirement coming soon!!!!
Quality posts and discussion of the company's merits if I ever saw it - lol
Headnorth
Stocks go up or down based on buy and sell orders. Today there were alot more sell orders than buy orders. Market makers move the price based on the orders....
Paul
It seems they cannot handle the truth - discussion of the company. Shareholders need to keep management accountable.
As Kelly said "our company, and it's management team, will and should be judged based upon our financial performance."
The biggest target missed IMO was the one from 12/03 estimating results for 2004 in the investor fact sheet located in the IHuB header and was on the company website - may still be...
FINANCIAL HIGHLIGHTS
2004E
Revenue $6,500,000
Gross Profit $3,250,000
Operating Income $2,500,000
Net Income $1,500,000
Let's see what the final 2004 #'s are...
Paul
It's the grassy knoll conspiracy theory....
It's unfortunate people attempt to avoid the truth. CEO's must attempt to paint a rosy picture even when things are bleak.
Time will tell the current state of affairs
Charlie
In a nutshell missed targets and expectations along with an ugly balance sheet.
There is something we do not yet know IMHO to cause this big selloff...
http://www.investorshub.com/boards/read_msg.asp?message_id=4390101
Trout
It would have been better to throw a few C notes at the Red Sox to win the Series - easy money!!!!
Plus the Patriots have only won 21 in a row!
Spice
Well said...in reality the market has done pretty well over the past year. People work too hard to see their money go away.
The debtholders I assume also want to get their $ so my guess is negotiations are going very tough.
Look at some of these Fidelity Funds.
Check out Contrafund
17.5% for the past yr and 12.7% over 10 years
http://personal.fidelity.com/products/funds/mfl_frame.shtml?316071109
Equity Income
16.5% for the past year and 10.7% over 10 years
http://personal.fidelity.com/products/funds/mfl_frame.shtml?316138106
Those are returns most of us will take without much of the risk. It's called compounding
Trout
That crossed my mind as well and if that is the case - there will be a ton of stock to chew through...
Where's Kelly?
Wouldn't you think the most open and forthright CEO would put out one of his informative letters to attempt to stop the bleeding?
Does anyone know the reason for the selloff?
Thanks in advance
Twister
Not old public information - the most recent public information. It's all you've got - 3 or 4 years ago BB companies were nonreporting and the BB market companies were almost all scams. Now they cannot hide their real financials.
Spin it all you want but the #'s speak for themselves
Paul
It is amazing to me as well. It's just the facts about the company.
Paul
For what it is worth and many do not like to hear it but as you said "A part of me just can't understand why this company isn't in Chapter 11" - I agree with your assessment.
My background is in finance and credit mgmt - I will never profess to be an expert but you will note I always look at a company's financials and their tangible net worth.
Tangible Net Worth is what banks and companies use to give loans and assign open credit. It is what is left after all the assets and liabilities are liquidated. In this case:
Current Assets $302K and Current Liabilities $9,846K - which is why they are in default of the debts referenced in their SEC filings. Negative cash flow so the debts continue to increase.
Negative Net Worth ($9.3M)
Retained Earnings (14.4M)- the amount of losses since business inception
How are these things usually resolved? Three options: Settlement which they are attempting to accomplish,
Chapter 11/business reorg, or liquidation.
This is why resolution/settlement of the debt is so important.
Significant Profitable Sales is the cure as well!
October
Expect news by the end of this week per the CEO
From the 10/4 CEO letter:
"October should see a number of corporate initiatives reach fruition as well, including the leaseholder/shareholder noteholder proposal being promulgated and hopefully concluded, and the launch of a from-the-ground-floor new website."
Enhanced website to be launched and leaseholder debt to be concluded
Profitability?
Soon and in the homestretch per the CEO
From Kelly's 12/16/03 letter:
"We are now in the homestretch toward corporate profitability as increased sales, an avalanche of demonstration requests, and a carefully-honed product line propels us toward a successful 2004."
From Kelly's 10/4/04 letter:
"I trust it is relatively obvious that we are approaching our goal of reporting profitability"
Time will tell - let's see what the Q3 financials look like and Kelly's outlook for the rest of Q4 for 2004
Paul
Experts? You become the expert by reading the company's audited SEC filing. See link below.
You asked: "Why haven't the creditors done anything to this point? What could they do?"
They have done something - they have filed suits to get their past due money which has been defaulted upon.
My suggestion is to print the document and you will have most of your questions answered.
http://www.edgar-online.com/bin/edgardoc/finSys_main.asp?dcn=0001162327-04-000035&nad=
Good luck and take care
Bill
Agree - getting out of default is needed asap to avoid additional lawsuits.
Does anyone have an update on the open lawsuits?
My guess is we will probably have to wait until the full year audited SEC filing as of 12/31 which was filed end of March this year.