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Wow...I thought you were joking.
Yet another musical chairs participant I see...
>>Rest assured, with Larry Lynch as the CFO of Triminnow
Lawrence Lynch is the CFO of Trimax (I assume this is what you meant?)???
If this were true I wouldn't be surprised at all.
Regardless of whether it was discussed or not he is right in saying that it is a non-event; neither good nor bad.
The PR gave no new solid information except that an additional 12 or 13 radios have now been delivered since their last PR. The rest of the PR is just tangetial facts, GTEM's 'visions', and things already known.
A non-event.
Well let's just use an example.
Let's say we have a fictitious company called ThinAirCo. who has an investor relations rep whose job it is to answer investor questions regarding the status of the company. Now let's say that a division of ThinAirCo (how about we make the division in Germany) happened to declare bankruptcy and shareholders got wind of it. A shareholder asks the IR rep about this bankruptcy, to which the response is "I don't know of any bankruptcy". Some months later ThinAirCo releases news that confirms the German division has gone poof.
Seems like a problem no? You would think that investor relations would investigate the question at the time rather than playing plausible deniability games. But it's clear that investor relations wants to receive as little negative information as possible from management to avoid being legally obligated to disclose it to inquisitive shareholders.
Seems like something of a problem when investor relations is allowed to say one thing (meanwhile hiding behind 'oh I didn't know' immunity) and management is allowed to do something else.
Ah yes, I was wondering when we were going to start doing business with Voyager Communications Group LLC.
Unfortunately those bonus options are very much in the money and they always will be until expiration.
http://www.sec.gov/Archives/edgar/data/919742/000114420406013259/v039229_10k.txt
"The stock options are exercisable at the [b}lower of $.675 ($0.045 pre-split)[they seem to have omitted the lower of here] per share."
"The stock options are exercisable at the lower of $.675 ($0.045 pre-split) per share or 50% of the closing market price at the date of exercise."
"The stock options are exercisable at the lower of $.5865 ($0.0391 pre-split) per share or 50% of the closing market price on date of exercise."
Hmmm ok let's start with one thing.
The same general counsel who was present at the company during the 'Dark Ages', the same one who crafted and vetted all of GTEM's agreements/documents, still remains on board. Good ol' Johnny Leinwand.
Seems like a pretty significant chunk of the past when the general counsel who was deeply involved in the operations of the past still lurks around...
Let's see...what else...oh let's talk about the rest of the insiders who are never more than an armslength away in some other cozy LLC that GTEM happens to do business with.
I wonder how the revenue restatements will affect the bonuses awarded to now ex-officers. Since it is likely that revenues will be lower will GTEM go back and post-effectively lower the bonuses received by the officers?
Oh wait...Well don't that just beat all...
Well there you go...going to restate financial statements for 2004-2006. I wonder what else they are going to change besides Centerline.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
On May 4, 2007, the Board of Directors of GlobeTel Communications Corp. (the
"Company"), in consultation with its outside accounting consultant, has
determined that the Company will restate its financial statements for the years
ended 2004 and 2005, as reported on Form 10-K and for the interim periods in
fiscal 2005 and the first two fiscal quarters of 2006 for which the Company
filed reports on Form 10-Q. Accordingly, the Company's prior financial
statements for such periods should no longer be relied upon. The Company has not
discussed this issue with its independent auditors.
It is anticipated that certain of the revenue attributed to the Company's
Centerline Communications LLC subsidiary will be restated.
http://www.sec.gov/Archives/edgar/data/919742/000114420407023253/v074037_8k.txt
>>How do you know that GTEM did not employ some very capable techs
I believe they did employ capable people, it is others on this board who create an infinite number of justifications for when GTEM 'fires' people, saying "oh he/she must have been incompentent. Good move GTEM!" or "clearly this person has bad blood with management and created trouble". They do so trying to shift blame away from management.
Here's a few questions for you...
1) What kind of margins are people expecting out of the Mexico JV? Has anyone done actual projections besides the ones spoonfed from the GTEM website/slideshow?
2) So far GTEM has accrued and should have (according to the contract) paid out to Altvater $90,000. By next week (the 15th) it will be $112,500 paid so far, does GTEM at least have operating cash flow (let's not even speak of free cash flow) to pay for this from the radios installed so far? According to their projections of 250,000 subscribers in 3 years, after 2 months they should have a subscriber base of at least 10,000 by now.
3) After Uli's first out of pocket flight down to Mexico, will GTEM be contracting ISG Jet to fly him down or will it actually use a commercial airline?
4)"Employees and Consultants. Within 30 days of the execution of the agreement, Altvater may extend an offer of employment to any of GlobeTel Wireless's former or current US-based employees without objection of GlobeTel."
If all former employees of GTEM were fired for being either incompetent, disgruntled, or cash burners why would Uli be hiring them? Why would he hire anyone who was incompetent or would cause him attitude troubles? If they were cash burners isn't GTEM just paying them through Uli's incredibly generous monthly consulting fee?
5) What is with the old address...
GlobeTel Communications, Corp.
9050 Pines Blvd., Suite # 255
Pembroke Pines, FL 33024
Telephone (954) 241-0590, Facsimile (954) 272-0380
>>- it was some back rooms which you had to access through another law office as I recall. They did not even have their own receptionist,
wow sounds surprisingly similar to another company...
>> can't understand why GTEM has such a problem with retaining board members. They arrive with much pomp and circumstance and soon wimp out quietly through the back door.
IMO because they have no idea of the true situation when they join. When they realize what they're involved in it's better to just leave quietly than risk reputation and money on raising a stink to fix a nano-cap company lining its pockets at the expense of shareholders dreaming of the moon.
Monterosso now gone, let the justifications begin. The fact remains that he was 'promoted' in Nov 2006 for his exceptional talent and how his management of the Centerline division was going to save the company. GTEM was raving about his abilities, and now not 6 months later he's terminated. Quite a change in assessment.
It's quite clear now that Centerline was not ever profitable, especially not during the period under Monterosso's rule. This company could and would never sell off a profitable division in order to raise capital to enter another as yet unproven venture. The tank is running on empty and they're trying to pull the last mile out of the fumes...
The office must be quite lonely now, who is left? K-boys and Leiny? I don't think JohnnyL will leave, like I have always opined, it was Huff and Leiny's show and when both jump ship it's over. Time for hibernation mode soon.
>>MetroTelPCS is affiliated with MetroPCS
Sirius, MetroTel is not affiliated with MetroPCS. They do not share common owners, they are not a subsidiary of MetroPCS, there is no way in which they are legally affiliates of each other. MetroTel is a distributor for MetroPCS, nothing more.
>>Keep in mind that the rapidly growing MetroTel Communications (3.4 million customers after 1Q 2007), for which the AnyWhereCaller product was developed,
Sirius perhaps you would stop mistating the name of the LLC which GTEM is affiliated with? You have been corrected several times on this but you insist on mistating it to make it sound like MetroTel PCS Communications(the LLC with GTEM principals as passive investors)is MetroPCS. MetroPCS is the one with millions of customers, not MetroTel.
>> it looks like we will be getting 70 boxes a month for $45,000 or $643 per box.
That is only Uli's 'assembly' fee. It does not include the component costs, shipping, installation etc which GTEM pays for.
>>The line is to protect Trimax from an unreasonable demand.
Yes it is. I never said it wasn't for Uli's benefit. I was simply responding to rwehapi when he mistook it as a guarantee for a certain production level. And I have read many contracts before nerd.
>>Why would they ever order less than the contract number? I mean really; think about it.
Perhaps for a number of reasons? They can't pay for the radios? They don't want them that month? They don't WANT to pay that month? The current demand doesn't warrant producing the radios?
The point of the post is that Uli is not REQUIRED to produce a set number of radios a month. It is POSSIBLE that he will if the full# is ordered by GTEM.
>>The title and ownership of any office supplies and equipment set forth on Exhibit B hereof, and which is located at 2675 South Horseshoe Avenue, Suite 401, Naples, Florida, shall be transferred to Altvater upon execution hereof.
Office supplies, that's perfectly fine and makes sense. But note it is not 'office equipment', just equipment. The question is what equipment is there and how much it's worth because they just gave it to Uli on top of his $45k a month.
>>Uli's 45k includes production of X number of Hotzone units per month
From 8-k:
"Units. Altvater will build up to [***] units per month of the HotZone 4010 for GlobeTel at Altvater's offices in Naples, Florida. Cost of assembly and testing of such units is included in the monthly cost set forth in this agreement, except for the cost of parts as set forth in subparagraph d below."
What the hell is 'up to'???? This is another example of GTEM's creative language. This is not a production requirement for Uli, i.e. he does not HAVE to produce [***] units per month. If GTEM requests it Uli will build UP TO [***] (<=== this is another hilarious GTEM 'literary' device) units. What if GTEM requests 1 unit a month?
I will correct this as it seems I misread/missed a clause in the agreement.
>>So basically when GTEM sells Hotzone radios to the JV, they will get cost plus some premium. Of the premium that they receive Uli will receive 50%.
It does not look like Uli will get 50% of the Hotzone 'sales' to the JV.
Ah yes an brand new 8-k to mull over. Let's start out with the first thing that jumps out at me.
1) This 8-k is filed as of the period March 7, 2007. It's nice that GTEM finally decided to release this agreement and 'winding down' news in MAY two month after the fact. Essentially this means that they were already shutting down Centerline and had this agreement with Uli in March and just decided not to tell anyone. Nice of Bleckman to finally wake up.
2) Uli's Agreement - $45,000 A MONTH as a base consulting fee? PLUS 50% of net profits from the Hotzone sales. I won't go into what a ridiculous hourly rate that is for someone whose previous technology has not really blown the pants off of consumers...That's simply amazing and just reinforces my view that this company is close to implosion. They're trying to move as much cash out of the company as possible, the 50% is a nice way of funneling money from the JV away from shareholders. So basically when GTEM sells Hotzone radios to the JV, they will get cost plus some premium. Of the premium that they receive Uli will receive 50%. Nice deal...
Note that since this was signed in Feb or March Uli has already accrued $90k in fees, do you think that he or GTEM have racked up $180k in Hotzone sales to make up for his fee?(actually it would have to be more since GTEM only gets 50% of the net not 50% of the gross sales).
3) Uli gets property as well? It's too bad they don't have to attach Exhibit B. It would be great to see exactly what GTEM just gave to Uli for free. Yet more assets moved away from shareholder hands.
4) GlobeTel Communications, Corp.
9050 Pines Blvd., Suite # 255
Pembroke Pines, FL 33024
Telephone (954) 241-0590, Facsimile (954) 272-0380
I thought they weren't here anymore? Are they just incompetent?
>>But we have new people in charge and the company's focus has narrowed.
You do not have 'new' people in charge. All you have is the same old people milling around in different LLCs and behind the scenes. Old 'Cole'slaw Kostro was around 2 years ago, Johnny Leinwand still there pulling the strings, bundles of transactions with random LLCs that just happen to employ old GTEM managers.
Yeah, new management...
The only reason focus has narrowed is because they've been called out on everything else they claimed they used to do.
>>The SEC will soon drive the final nail in the coffin and the total meltdown will be complete.
Unfortunately I don't think even the SEC will be able to kill this scam. I see them slapping GTEM and management on the wrist, saying 'bad boys', and letting them continue on with a scarlet letter. If anything happens it will come from 3rd parties they owe money to. Even then they will just chapter 11, go into hibernation mode and come out in a few years with another 'revolutionary' venture.
>>1.The parties are currently discussing the possibility of settling this litigation.
I wonder WHAT they're going to settle it with...
>>now it will probably be sold for a lot less, and shareholders paid again the bill...
That's the name of the GTEM game Jim. Keep in mind that Uli got all the cash from that inflated sale price to begin with, and I wouldn't be surprised if he stepped in a bought the property back from GTEM. Of course as a 'favor' to the company.
Interesting how this also happened with MagicMoney...shareholder equity sales paid for the hard asset of the switch and then it was sold for nothing to another entity with all the same ol' players.
"Fool me once, shame on you; fool me twice...and i'll put in orders to buy more shares."
>>given the recent MetroTel IPO
Ok Sirius, first off the company that IPO'd was MetroPCS, not the MetroTel affiliated with GTEM. So stop trying to make it sound like they have anything to do with each other.
Second:
>>agree with the assessment on possible redeployment of Centerline assets to AnyWhereCaller
IMO any 'redeployment' you're going to see will be in the form of another MagicMoney type sale. Aka the assets being 'sold' to MetroTel PCS Communications for $0 and lots of promises.
I'm pretty sure blind monkeys could run this business better.
At least they would be honest.
It's pretty clear that they were NOT getting positive cashflow out of Centerline either.
Oh well. Don't try and tell me that they would 'wind down' or sell off a cash flow positive division. I know fingers are itching to explain this away but there is no explanation except that Centerline was unprofitable and remained so since the last 10-Q.
Again, unfortunately it does not matter that you or I do not know the details of the case Sharkey. Maybe Sand's is right, maybe GTEM is right. It doesn't matter.
The time for argument is over BECAUSE SANDS WON THE JUDGEMENT AND IS LEGALLY ENTITLED TO THE FUNDS NOW. GTEM declined to defend itself or dispute the claim in court, therefore it is now a legal claim regardless of any of the prior details.
I believe that the company line on it was that the lawyers were being deployed to address it.
http://www.investorshub.com/boards/read_msg.asp?message_id=19058858
I can't wait to see the PR that comes out about this one.
I dont' believe it will either. Because the good ol' K boys has everyone hanging onto their shares because of the impending explosion in Mexico!
That he may be throwing a tantrum unfortunately does not change this:
"The "Los Angeles County Sheriffs" - www.lasd.org will levy on behalf of Sands Digital Media on the assets of Globetel Communications and Sanswire Networks "Stratellite 2A" and other equipment to satisfy the $5,050.00 judgment immediately. "
All the other stuff in there was pretty well known before (King and ISG Jet, Leinwand's other 'ventures, etc etc.) and IS Sands being childish. But it really doesn't matter how Sands looks. It matters that GTEM was unable to settle a $5,000 bill. That should be most concerning...
>>Pretty desperate attempt to explain why no criminal charges have been filed yet, and probably won't be. LOL
Already explained this to Nerd and I will now explain it to you. The SEC does not provide a timeline nor guidance for when or how quickly criminal charges are brought against any involved parties.
The SEC may not be looking into pressing criminal charges at all. They may also just be taking their time to build a tight case against the offending parties since it is important for the initial prosecution to succeed. YOU SIMPLY DO NOT KNOW.
Frankly I do not believe that criminal charges will be pursued here. But you are incorrect to say that because charges have not been brought yet that they will not be in the future.
>>If there are criminal charges these are leveled very quickly.
You have no proof of that. The SEC does not provide a timeline nor guidance for when or how quickly criminal charges are brought against any involved parties.
The SEC may not be looking into pressing criminal charges at all. They may also just be taking their time to build a tight case against the offending parties since it is important for the initial prosecution to succeed. YOU SIMPLY DO NOT KNOW.
Frankly I do not believe that criminal charges will be pursued here. But you are incorrect to say that because charges have not been brought yet that they will not be in the future.
>>Yet, why go to all this trouble if you were not fairly certain things are indeed looking up?
Because they need more of you guys to buy so they can sell more equity and get rid of the debt.
So obvious...
>>So they are very under water on those as are manny other investors.
Frank, you are naive if you think that these investors are still holding onto shares from that offering. These guys are here to make fast money and you can be sure they were out long ago with a tidy profit to boot. They are not venture capital.
They do not care about keeping the company afloat, they care that their warrant price was adjusted down to a significant discount to market price meaning one thing...more profit.
I reiterate what I said before...investors who actually understand what kind of situation the company is in should go after the company now while they still have the cash they just raised. Because IMO that is the most you will ever get back from your investment.
>>why would these investors sink another $900K into a losing propostion?
Because they can turn right around sell their shares (cost basis $0.20) into the market. lol, you think they're just going to sit on them?
There's an instant 27% profit right there for the warrant holders after the exercise price adjustment. Who wouldn't do that.
GTEM adjusted the price to raise cash simple as that. The fact that they are doing this through warrant price adjustments is indication of how little access to funding they have. If I were a shareholder I would be going after the company right now before that cash finds its way into management's pockets again.