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Actually I know Peter. He's a good guy and very smart. Peter was just, and very fairly I might add, giving voice to the inside industry opinion that Qtrax would never work. Obviously that opinion was right. Many have been suspicious of them for many years prior.
Since the MIDEM fiasco, which Peter actually broke,he has refused to even give Klepsy the benefit of mentioning him in writing. If you'll notice, Peter hasn't written a single word about Qtrax since then as Klepsy blew his credibility big time.
Thank you Commissioner Gordon. Rest assured that I will always answer the bat signal. Crime fighters never rest.
Sorry pal. But that's complete BS. What you're saying is that Klepsy has open ended licenses. Not done. EVER. Every label contract has a term. When the term is up, its up, whether or not there's been a launch. Anything to the contrary is a 1000% lie. Besides, these contracts are confidential so how would you know if you have not seen them yourself? And if you have seen them you are either a Klepsy insider or Klepsy has breached the confidentiality clauses. Which is it smart guy?
Actually, you are correct, chewbaka. The statement made that the contracts begin upon launch are very misleading. It is possible to arrange for payment of the advances upon launch--we did that with Mashboxx--each label contract still has a term of typically 12-18 months. That means that the contract would no longer be in force and a new contract would have to be negotiated. In other words, Klepsy probably doesn't have any contracts that are usable. They would, however, make excellent wallpaper for his bathroom--wherever that may end up being.
And why do you people keep dodging pertinent questions and issues? You all want to just keep ignoring the facts and get upset when these facts and unanswered questions are continually posed. Someone is avoiding the truth.
I have posted several times why I am here. I perform a public service. Just like Batman
With all of your faith and cheerleading (and closeness to the company) how come you nor anyone else can or even attempt to answer the most significant questions?
Like:
What about the lawsuits?
What about the judgments?
What about the existing payables?
Are their label licenses in force? (I'm sure they would say yes, but I don't believe that for a second and the only way to find out for sure is for the labels to make a statement and they won't do that. They could care less about Qtrax)
When are they going to file up to date company statements with the SEC? Why have they not files or given the shareholders any key information other than false promises for the last 3 years?
How much of the BLLN share of Qtrax have they deleted?
How many registered shares are there?
When will their ever be a shareholders meeting? (Ever been to one? Or even heard of one?)
Who is on the board of directors and when will they be voted on again?
These are just a few questions that ANY half-way intelligent shareholder would want answered. It is standard operating procedure. If you're so close to these guys then get the answers for the shareholders. You won't. They haven' filed reports because they would have to disclose stuff that they clearly don't want disclosed. I personally know that the "A Team" (hysterical) has lost some of its members who are devoting their energies elsewhere--like trying to make a living (you fellas know who you are). Make no mistake, Klepsy watches this board like a hawk as this is the only place where people are even mentioning Qtrax.
By the way, so where is Klepsy anyway? I think that he hasn't been in the US for about 6 months. At least. No way he wants to be in US jurisdiction. And how come nobody has heard from Klepsy apologist Jay Berman?
Could it be that there are schills here for Klepsy & Co. ?
Hasta luego.
Thank you very much. Those are very kind words.
My motivation has always been to shine a light on irregularities and lies so that investors would be able to avoid getting hoodwinked. I have an intimate knowledge of the industry and know the inside game. Like it or not, I am always truthful and as you suggest, many don't want to hear the truth.
Another goal of mine is to always call out bad actors. They just make it much more difficult for legitimate plays to get funded and have a viable shot in the marketplace. As I have before, I have personally experienced difficulties as a result of the actions of certain bad actors. And many others in the business agree with me.
Those who bash me for being truthful are clearly afraid of something. What could that be? I have absolutely no concern whether the PPS goes up or down. So to accuse me, or anyone else for that matter, of trying to manipulate the stock via this board are pure fantasy at best.
Actually I feel as though I have performed a public service.
Excellent analysis!
You're right on point. There is absolutely no way that any investor would give them bus fare considering the payables and lawsuits. And BTW, there are probably more lawsuits that we don't even know about. Remember the one in Phoenix that resulted in a default judgment of $200-250 K? God knows how many more are floating around out there. I personally know people who have either never been paid and/or holding bad checks from them and just have not pursued any legal action. They probably know that it is useless because if they do prevail in court, and they would, they would never collect from Klepsy. Let's face it, the public record shows a very consistent MO of dodging payment of settlements, let alone judgments!
Firstly, Klepsy has absolutely no credibility to bash.
Secondly, it's nearly impossible for this thing to get going. The factual reasons are numerous.
Thirdly, I don't know what you've been reading, but Spotify is an ad-supported service with a subscription option. The model is was beyond anything Qtrax has come up with, and unlike Qtrax, has launched and has experienced a reasonable amount of success.
Fourthly, there is little to nothing to defend any longer. Qtrax is DOA. There is absolutely no way this will EVER happen. If it hasn't launched by now, it never will. That's just plain fact.
Furthermore, does any shareholder or poster on this board know who is on the Board of Directors? Or even if there is one? Not talking about that phony baloney advisory board--a complete joke, by the way. They have no influence on the operations of the company at all. Who is looking over Klepsy's shoulder? Who can replace the CEO? Don't any of these questions EVER occur to some of you?
Don't you realize that you have not seen an SEC filing for 3 years now and have not heard a peep from the CEO since Christmas Eve when he made firm promises that were quickly broken? Don't you realize that he never answered the Oracle lawsuit and the plaintiff is now moving for default judgment? And this is after he told shareholders and the world that the Oracle "tiff" would be rectified in a week or two (that was last July, I believe).
Doesn't it bother you that no one can reach Klepsy or even get an answer at the Qtrax world headquarters? Have you even bothered to try reaching him on his cell phone? Doesn't it bother you that the only information you seem to get is either rumor or second hand at best? Don't you ever question you sources about the validity of their supposed "info"? Don't you realize that there are literally millions of $$ of outstanding judgments against BLLN, Qtrax and Klepsy personally? How can he even have a US bank account without it being attached? Doesn't it ever occur to you that Klepsy isn't even in the US and probably hasn't been for months? It appears as though he may have fled the country. And have you heard anything about an existing real estate lawsuit surrounding the "world headquarters"? Is is possible that the world headquarters are being foreclosed or attached?
Does any of this ever cross your mind? And if so, what exactly makes you think that Klepsy can pull anything off? It defies logic and just bogles the mind.
Sorry, but the licenses that Klepsy purportedly had are absolutely nothing special. In fact, Spotify and many others have much more advanced models/agreements.
More to the point, what makes you think that he still has any licenses at all? They do expire, you know. In fact Klepsy let at least one set of licenses expire in the past. Typically the term of these licenses range from 12-18 months. Do the math.
Sound familiar?
http://thesaurus.com/browse/scam
Main Entry: scam
Part of Speech: noun
Definition: swindle
Synonyms: blackmail, cheating, con, con game, crooked deal, deceit, deception, dirty pool, double-cross, double-dealing, extortion, fast one, flimflam, fraud, hoax, hosing, hustle, racket, rip-off, shady deal, shakedown, sham, shell game, snow job, sting, sucker game
http://dictionary.reference.com/browse/scam
scam [skam] Show IPA noun, verb,scammed, scam·ming.
–noun
1. a confidence game or other fraudulent scheme, esp. for making a quick profit; swindle.
–verb (used with object)
2. to cheat or defraud with a scam.
I just don't understand why you guys just don't call Klepsy and ask him about all of this "chatter".
Perhaps you missed my post over the weekend. So I'll re-post here:
I know that many of you have been frustrated in your attempts to reach Klepsy and ask some very pertinent questions about the company. From what I can tell, many have been trying to reach him by calling the NY office number, but with zero results.
It so happens that in some court filings regarding one of the many outstanding claims and judgments against BLLN, Qtrax, Klepsy, et al, I came across some contact information that I'm sure many of you would appreciate having. It comes from email exhibits that bear Klepsy's email signature.
Here are his various cell numbers:
US +917 270-8929
China +85267700236 or +85267183285
Malaysia +60166959025
Singapore +6590592614
email: allan@qtrax.com
Try reaching him at one of those numbers. But don't be surprised to find that all of his voice mailboxes are full. It's one of his favorite ploys to avoid calls.
I know that many of you have been frustrated in your attempts to reach Klepsy and ask some very pertinent questions about the company. From what I can tell, many have been trying to reach him by calling the NY office number, but with zero results.
It so happens that in some court filings regarding one of the many outstanding claims and judgments against BLLN, Qtrax, Klepsy, et al, I came across some contact information that I'm sure many of you would appreciate having. It comes from email exhibits that bear Klepsy's email signature.
Here are his various cell numbers:
US +917 270-8929
China +85267700236 or +85267183285
Malaysia +60166959025
Singapore +6590592614
email: allan@qtrax.com
Try reaching him at one of those numbers. But don't be surprised to find that all of his voice mailboxes are full. It's one of his favorite ploys to avoid calls.
Hello boys
Well, I decided to make an encore appearance. I know that some of you refuse to give up the ghost. I've been telling you now for quite a while that this pig will never fly, and it won't. To further make my point (and to satisfy your curiosity) I thought that I would give you an update on the Oracle lawsuit. It looks like your boy Klepsy is heading for a $2 million default judgment!!!
http://docs.justia.com/cases/federal/district-courts/california/candce/4:2009cv03334/217433/21/
May I remind you that in a blog post from last August Klepsy said that he'd have the Oracle "tiff" resolved within the week. Of course, we all know that he would never lie. He certainly hasn't put any lies out there at all. He's the most honest man that ever walked the earth.
It's over fellas. Enjoy the wake.
Gentlemen:
I appreciate the goodwill that you have thrown my way over the last two days. But I would be a total hypocrite if I did not bring some new information to light. All to further a point I made earlier about how professional investors think and operate, especially in these lean times.
It has come to my attention (and not through my own research, mind you), that 2 more actions have been filed that have been heretofore gone unreported.
The first is a Confession of Judgment for $280,000 and can be found here: http://iapps.courts.state.ny.us/iscroll/C_PDF?CatID=557350&CID=100863-2010&FName=0
For this of you who are not familiar with this particular instrument, as I understand it, it is a total admission of debt and can be enforced using the full weight of the courts, including, but not limited to, asset seizure and even jailing for contempt of court.
The second is a fairly new action brought by the Gross Foundation, a non-profit based in Brooklyn. That suit is pending response from the defendant and the plaintiff is seeking over $680,000 plus interest for unpaid loans. http://iapps.courts.state.ny.us/iscroll/C_PDF?CatID=550925&CID=603628-2009&FName=0
I'm sorry if this upsets you, but it is indisputable fact--public record. I am not in any way responsible for the filing of any of these actions let alone the multiple entries of confessions of judgment and court ordered judgments. I never did anything to force AK into signing anything, taking any loans, or writing bad checks. This too is fact. This is informed speculation, but these actions would have to be disclosed in any SEC filings which may account for the lack of said filings.
Also, to be totally fair and candid, there is no way that I can stop or undermine Qtrax, its funding, or its launch. I appreciate the fact that some may assign that power and influence to me, but it simply is not the case.
Getting back to the original point, these are even more reasons why funding will be nearly impossible. (By the way, all of these actions are in NY State Court. We don't know how many others are in other stat courts and federal court. I know of one default judgment in Phoenix AZ, and Oracle is in CA court, and I know of one other action is Federal Court). But I assure you that VC's will not touch any company that is involved in litigation. Before they invest they will insist that all outstanding matters be resolved and the books wiped clean. Now that figure is nearly $5 million including Oracle, and that's only the ones we know about.
Just stop and ask yourself what you would think if you were a VC, responsible for other peoples' money, and were approached with this investment. What would you do? There are so many deals out there now, why take such a huge risk? And any VC would want to know how much money they have burned through already and why so much and no revenues let alone a launch. This is how they think. And remember, no one ever lost their job for saying "no".
There is really nothing that would change my opinion about Qtrax as I believe that it is realistic. There are so many reasons why that it would take way long to enumerate them. But let's start from a 50,000 foot view.
To begin with, there is no way that any professional investor will invest millions of dollars in a venture that has over $2 million in money judgments against it plus an outstanding $2 million suit from a major company like Oracle for, of all things, writing a bad check. It means, just for starters, that about $4 million of whatever they invest immediately goes out the door to take care of those issues. And I promise you that no investor in his right mind will allow that. Then of course, the investor will look at any management that got the company into such a situation rather askance. It would be rather suspect.
And an investor would dig very deeply into management. The DD process that professional investors typically utilize is akin to having a colonoscopy. They look up management's $$$ like you wouldn't believe. They want to know about any judgments, litigation, personal debts, credit history, criminal record, medical history, etc. It's pretty thorough. And management has to be squeaky clean.
Another issue is the number of failed and launches and, especially in the MIDEM case, questionable judgment in spending. That will tend to scare off legit VC's. Don't forget: VC's use Google too. There really isn't any viable excuse. To say that "we were made promises that were not fulfilled" just doesn't wash with investors. Remember, VC's are hard core business guys and you have to jump through dozens of hoops before they will write a check. Its just fact. In short, I just don't believe, based upon my experience alone, that Qtrax can pass rigorous DD.
Then you have to look at the credibility factor with the content owners. They may have taken the company seriously5 years ago, but they certainly don't now, in my opinion. And one of the reasons is that they just don't believe in the ad-supported model any longer. From their point of view they've tried it and it has failed on every occasion. That is a factor that has held up Spotify's entry into the US--resistance to the model in this territory. The model itself is extremely flawed and personally I don't think that it can work--period. There are so many reason why I believe this--scale, catalog, ad-rates, etc.--but I really don't want to get that granular at this time. When Robin left SpiralFrog I had a chat with him. He told me his numbers and assumptions and, based on my own calculations that were heavily vetted by Virgin for months, there was just no way that his numbers were on this planet, let alone in this galaxy. I knew right then that the SF model would never work. In essence, Robin took the SF model to Qtrax.
Mind you, I like Robin. I call him occasionally just to have fun torturing him. He takes it with great humor. And I chide him constantly for sullying his reputation by association. My feeling is that he's starting to get it, but one never knows what goes through another person's mind. But he's a fun guy and I enjoy talking to him. I sincerely hope he does well in whatever he chooses to do next.
I've know Rick for over 30 years. He's a very sweet guy. But I think that he may wish that he had never gotten involved with Qtrax. Just a hunch. And I have know several other people who have passed through the Qtrax wake and there are not a lot of warm feelings out there. I really can't go into detail, but suffice to say that its not a bed of roses out there for the company.
So aside from management, there is a real question as to the viability of the product. I don't believe that it is viable for many reasons, some of which I listed above. Let's briefly look at FreeAllMusic. They seem like nice guys and are trying to do some innovative things. But I don't believe that there business will scale--primarily due to in difficult of the service to handle catalog and the user experience. I won't go into great detail here, but I do believe that it would be fine for bespoke marketing campaigns but not mass consumer acceptance. I honestly don't believe that Qtrax can even be a supplier of bespoke services.
You must remember, as I am sure you know, that DRM and portability are huge issues. With DRM'd tracks, Qtrax offers little more than a beefed up streaming service. I say beefed up because theoretically tracks can be moved to windows based DMP's. But exactly how much of the market has those players? Very little. It is a given that you cannot succeed unless you have ipod compatibility and that means that if you're not Apple, you have to have mp3's. And there is absolutely no way, no how, that Apple will allow anyone to crack their software and get away with it. In your heart of hearts you must know that. There just is no way that Qtrax or anyone else is going to reinvent the wheel.
I could go on for quite a while here, but I must cut this short. I hope that this helps to answer your questions. I'm sorry if any of this disappoints anyone, but you asked for an honest assessment and I'm attempting to do that. I've been around the block a few times in this business. I started out 40 years ago in the music business and have been in the digital realm for more than 13 years. It’s a very difficult business even in ordinary times and in the digital age getting a music service off the ground is immensely difficult.
CORRECTION
I was re-reading my post from yesterday and realized that I had misspoken regarding one of the things that I had learned. I mistakenly said that I had learned never to announce launch dates. In fact, it’s a golden rule to never announce them---it wasn't something that I had to learn per se. The truth is that you never know when you're going to launch until you're actually ready to do so. Typically there are a couple of beta phases that a service must go through in order to make sure that you can successfully launch--testing stress loads, bandwidth, etc. So anyone in this business knows that you just don't announce launch dates until you're absolutely sure that you will have as smooth a launch as possible.
In response to your comment, let me add, with no animus whatsoever, that based upon my experience, current talks with record labels and vc's, knowledge of the current marketplace, viability and acceptance of various ad-supported models, what I hear through the industry grapevine, my familiarity with certain members of the management team, public record issues regarding litigation, the lack of reporting and/or shareholders' meetings, and just plain old common sense, I'm afraid to say that I am quite sure that this venture will never see the light of day. This is a candid and accurate assessment.
Furthermore, it is my opinion that situations like this are not only harmful to investors, but they cause problems for others who are trying to build digital music services. It's the rotten apple syndrome to some degree. It muddies the water and makes it that much more difficult to get funding and content licenses. Record labels and investors have a tendency to label and lump similar yet different models into the same category. As I mentioned in my previous post, I personally ran into this problem several times with investors when trying to get post-Virgin funding. There comes a time (another thing I learned from the MB experience) that you just have to give up the ghost and move on. I know that it is difficult--believe me. When I got the news about Virgin I was literally in the fetal position and couldn't even speak to anyone for months. It was really a blow to the solar plexus and it was very difficult to pick up the pieces and work up the energy to go out and look for more funding. In every investor presentation we always had the Virgin situation hanging over us. But hanging on really does no one any good when the writing is clearly on the wall.
In closing, I would like to thank those of you who have been exceptionally personal and rude to me in the past but who received my post yesterday in a gentlemanly manner. Believe it or not, I appreciate the civility and will once again repeat that I am happy to answer any sincere questions that anyone on this board may have.
Thank you.
You're very welcome. I'm happy to answer any sincere, honest questions.
One other thing that I learned but forgot to mention. You have to have a huge war chest in order to play in the digital music space. These days about $15-$20 million just to get launched, maybe more in some cases. This is why it is extremely difficult and only the big boys can step up, like Apple and Amazon. That is why so many investors won't fund independent music start-ups. Especially those that have been trying to launch for an extended period to no avail. That was one of the Mashboxx problems and its still a valid concern today.
Since you ask an honest question, I'll be delighted to answer honestly and candidly.
When news broke about Mashboxx in the fall of 2005, investors were calling us for meetings. We were on the road doing presentations for months. There were plenty of takers, but no one wanted to lead. WE got to the alter with a couple of investment groups but they got cold feet at the last minute.
We based our model on the fact that every time a user opens a p2p software program, the very first thing they do is search. They then click to download. That process is repeated over and over again. What we did was to come up with a very unique way to monetize the actual search activity. Simple. We didn't care if anyone bought anything ever. And since we negotiated the first streaming licenses (users would get 3-5 free listens per song) all we cared about was getting people to search and listen.
The biggest issue that we ran across was DRM. At the time the labels were requiring us to use it, but I knew that it would never last and told investors that eventually they would have to drop DRM. I was right, but that wasn't enough for some investors, even though we had negotiated very uniques, one-of-a-kind licenses that allowed us to traffic in "grey" content on the open p2p networks. Those "grey" tracks, millions of them, would be unprotected mp3's.
Finally in April of 2006 we became seriously engaged with Virgin Management LTD in London. We went through months and months of rigorous due diligence, even to the point that Virgin held focus groups on the product in NY and LA. In October of 2006 we finally signed our term sheet that required a $12 million investment from Virgin. We were planning to change the name of the company to Virgin Play.
We were set to close on Dec. 22, 2006. That morning, the FAA ruled that Virgin America could not fly in the US and that they would have to restructure in order to win approval. The Virgin investment committee shut down all new deals to work on restructuring Virgin America so our deal was off.
Needless to say, it was devastating. We tried to raise money for a while afterward, but it was an uphill battle. First of all, even when a deal goes south due to no fault of yours or the model, the project becomes a bit tainted and investors tend to shy away. Secondly, a lot of the investors that we spoke to had been pitched SpiralFrog and/or Qtrax and indicated that they did not like those models. Unfortunately we got lumped in with those, even though we had what we thought was a completely different and unique model. And our numbers and assumptions verified that.
As a result we were never able to close the funding to launch.
As far as the licenses go, I can't get specific as those documents are confidential, but let's suffice to say that the advances were exceptionally reasonable and in aggregate were under 7 figures. Actually, the labels became very cooperative and believed enough in the model to give it a real shot. But the label advance situation has changed dramatically and now that number would tally well into 7 digits and possibly 8. Times have changed.
As far as what I've learned, one thing for sure: don't trust Virgin. I would have done a lot of things differently. But the truth is that you're always having to learn from mistakes. I learned not to give launch dates, as you never know what's going to happen. I learned that deal is never done until the money is in your bank account. Never get your hopes and expectations up because there is always something that will go awry. The trick is to navigate these inevitable obstacles one by one. Take things one day at a time. I also learned what investors really look for and what their needs are. What they will invest in and what they won't invest in. I'm working on some major deals now and I always keep these facts in mind. Investors don't want their money walking out the door to go toward existing payables. Not going to happen. They want as much risk removed as possible. They are risk averse. Lots of other things as well. But even now, I and my colleagues in our little management group are always learning and make sure not to make the same mistakes.
I hope this answers your question. I have been 100% truthful and hope that you take it in that spirit.
The answer to your closing questions are:
No
No
No and No. In that order.
More good news for your hero AK
This was entered on Monday, Feb 1.
http://decisions.courts.state.ny.us/fcas/fcas_docs/2010FEB/3006022562009001SCIV.pdf
My apologies, sir. You're absolutely right. I'll try to be completely irrational in the future. That way my posts will fit right in.
Sorry dude. Haven't been sued.
And watching you guys is wonderful entertainment for me. More fun than a barrel of monkeys.
You guys are just like battered wives. You keep coming back for more. "He's sorry". "Things will be different from now on". Love it.
Frankly, I wonder how a CEO of a publicly traded company can get away with not following through on material statements like guaranteeing that updated accounts will be filed by a certain date (last July, I believe) and not doing it. Unbelievable. Doesn't anybody care about the financial health of a company that they invested in? Doesn't anyone want to attend a shareholders meeting or elect a new board of directors? Has anyone ever even seen a business plan? Like I said before, you guys are the perfect investors. They should all be like you.
Young man, you clearly don't know me. No bruised ego here. If anybody has a bruised ego it's your buddy AK and his acolytes. This pig will never fly, even if by some miracle it manages to launch in somewhere like Tazmania. Not going to happen. The gall it takes to keep pumping this dog is absolutely astonishing. And to think that all it takes to get you guys all excited is a new splash page every few months. What a bunch of morons.
Yes. You're right. There is a reason. Looks like AK defaulted on yet another settlement (another set of bounced checks)
https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=OngETBBRXLhK0KzfM2IsSw==&system=prod
Keep on dreaming fellas. You're all geniuses.
Sirs:
You are correct. To be clear, my motives are to point out a litany of unmet statements, promises and "immutable" launch dates. Gentlemen, you may criticize me all you like, but none of that has anything to do with the facts--which are clear to anyone who even approaches objectivity--or has the intelligence of a zygote.
Raising specters of jealousy, venom, the inability of Mashboxx to get launched in spite of the fact that we had unique SIGNED licenses from every label, or anything of the like, is nothing more than a pipe dream. Sure, I could have kept trying with Mashboxx, I'm a very resourceful guy. But there comes a time when one has to be realistic and move on. You also fail to realize that : 1) Mashboxx's inability to launch had nothing to do with management, technology, or its business model (I have been very open about that) 2) Mashboxx was not a public company.
And that is the real issue here. How can the management of a publicly traded company continue to make such statements without being seriously questioned?
I didn't say that it was. And I have been very candid as to the reasons and circumstances surrounding it's demise. I know that its tough to sometimes see the writing on the wall, but at some point one must give up the ghost. And MB was never sued by anyone for anything, BTW. Plus, I was not the CEO. That was Mike Bebel, former COO of Napster and now VP of Nokia Music. I was a founder, thank you, and I'm not a bit ashamed of Mashboxx. We definitely forged new ground in the industry and opened the door for others, including Qtrax.
But I fail to see what the fate of Mashboxx has to do with your pal AK.
And as far as buying the measly heavily diluted minority 42% of stock, I think that the brand has been a bit tarnished at this stage and not many intelligent investors would be interested. So I'll have to respectfully pass on that suggestion. But thanks for thinking of me.
Mashboxx is where Qtrax should have been several years ago. I've moved on. And BTW, I find it interesting that you ( and AK) want to tag me as being jealous and a failure. Do you really think that Qtrax is successful?
Time For A Walk Down Memory Lane
Well hello gentlemen. Given the time and circumstances I thought that it would be fun just to show myself once again and drop a few reminders. But not reminders of what I had told you boys in the past--although many of you not only did not believe me but got rather hostile because I was truthful with you.
This is not meant to be an "I told you so".
Let's begin by taking a short walk down memory lane and revisit the glorious prose directly from the mouth of Mr. Klepfisz, if not from his officially released propaganda. Let's go back to June 16, 2009. That is when, after calls for corporate accountability, the company posted an update on their web site with the following statements and promises (very little of which came to pass and the post was later quietly removed from the web site):
Qtrax, Inc. ("Qtrax") a division of Brilliant Technologies Corporation (BLLN.PK) today provided this corporate update. Qtrax will provide bi-monthly updates going forward.
Expansion of Music Catalogue
Qtrax will be more than doubling its vast library of songs on or before July 6th, 2009.
Song Download Speed
Users of the Qtrax US Preview software will have noticed that with a broadband connection, song download speeds probably average somewhere between 3 & 10 seconds. This clearly compares favorably to all other music services.
Official Global Launch
Qtrax will officially launch in the United States and in at least 6 other countries with version 1.01 on July 22nd, 2009.
Allan Klepfisz, President & CEO commented:
"This has obviously been a long time coming. We are thrilled to have finally reached this point as we are with the unique product we will be offering. This of course is the first time that free & legal downloads have been offered to the world from a broad catalogue. We will be providing specific country details in our next update".
The Global Launch will involve a number of high profile artists, industry leaders & partners.
Qtrax will be launching an extensively enhanced product. Features include:
• Compatibility with Mac, Linux & PC
• Ability to transfer songs to a wide range of mobile phones & mp3 players
• Elimination of the need for cumbersome installation
• Further developed social networking features
Licenses
On or before July 6th, 2009, Qtrax expects to announce new record company & publishing licenses.
New round of funding
The Company expects to successfully complete a new round of funding during June, 2009. Details will be made available at the time of completion.
Quarterly & Annual Filings
The company expects to file up-to-date audited accounts during July, 2009.
Executive Appointments
Michael Arons has been appointed interim CFO.
Blake Indursky has been appointed Executive Vice President.
Alex Goodman has been appointed Executive Director, Asia/Pacific.
David Musolf has been appointed Global Head Ad Sales.
Agency Appointments
Richard Rubenstein has been appointed to manage PR globally working in concert with Qtrax's in house team, lead by Shamin Abas.
Steak Digital has been appointed to manage online marketing, search engine optimization & traffic build globally.
Cunning has been appointed to create & manage special events from launch onwards.
Qtrax Blog
On or before June 27th, 2009 Qtrax will inaugurate a blog. With regular contributors & occasional executive postings, the blog will deal with Qtrax developments as well as reflections on the industry and anything else that grabs the Qtrax team's attention. It will be lively, irreverent and forceful when appropriate.
The very next day, Klepfisz made the following comment in a rather long blog post:
...people, rightly want some guidelines & timelines. And so we try, not often enough, to provide them. But in a way, it’s too often. Because, particularly, in these unpredictable times, it’s very easy to be wrong. Because even if you add plenty of extra time to account for the unexpected, you can never accommodate a massive delay or a completely broken promise. But none of this is an excuse for being late. Nor is it an attempt to avoid giving what will, we strongly believe, be the final, unalterable, unmovable launch time. And we’ll do that in the next week. And you’ll be able to mark it in your calendar. And we’ll do a corporate update at the same time to give you a few more things to mark in your calendar. The reason we’re waiting until next week is we want to make sure we have the money in the bank. With money comes certainty.
Another blog post on July 27, after news of a legal action initiated by Oracle over a $2million bounced check from AK:
Now, I cannot sign off without a discussion of our launch date. So are we going to set a launch date? Well, I said in the last blog that we will do so when the money is deposited. And I thought it would happen by now. I was wrong. It is not yet deposited. But it is scintillatingly close. So stand by. We will be announcing that FINAL, IMMUTABLE launch date very soon.
Then on August 17, 2009, in a company press release:
Qtrax, Inc. today announced that it would begin its global roll out with a launch in the Asia pacific region on Thursday October 29th, 2009.
Initially Qtrax will operate in China, Hong Kong, Taiwan, Philippines, Indonesia, Singapore, Malaysia, Australia and New Zealand.
Before the end of the year it will launch in the US & Canada and the UK. Within the first half of next year it will roll out to the rest of the world.
Then on October 28, the very day before the scheduled launch, the company issued the following statement:
-- Qtrax (www.qtrax.com) today announced its rollout schedule for its free and legal music download service in the Asia Pacific region. Qtrax will launch as follows:
Australia & New Zealand- Nov 5th, 2009
Singapore- Nov 12th, 2009
Malaysia- Nov 19th, 2009
Philippines- Nov 26th, 2009
Indonesia- Dec 3rd, 2009
Hong Kong- Dec 10th, 2009
China- Dec 17th, 2009
Taiwan- Dec 24th, 2009
Qtrax intends to continue its roll out to other territories from the beginning of the New Year.
Qtrax will begin to accept email addresses tomorrow at midnight to preview its new product.
Then in a Nov. 2 company press release, a rather vague deal with Baidu was announced:
Qtrax (www.qtrax.com) announced today that Baidu, China's leading Internet search engine, has agreed to direct music related search inquiries from its Entertainment Portal, and Qian Qian Music Online sites to Qtrax's independent, free and legal download service, wherever Qtrax has the queried artist or song in its catalogue.
Allan Klepfisz, President and CEO of Qtrax, commented: "We are very pleased with Baidu's decision. As the dominant search engine in China, Baidu will provide us with substantial traffic from its music and entertainment portals. We, in turn, will provide the visitors they send to our independent free and legal site, a superior music discovery and download experience. In the coming weeks, we will progressively launch in each of nine Asia-Pacific countries and begin to divert and monetize traffic - for the benefit of artists and copyright holders - that previously found its way to non-licensed sites. We believe our offering, including information about the artists, is vastly superior to these unauthorized sites."
Of course, none of this matters if you're not launched.
Then, a blog dated Nov. 6, 2009:
Today we were supposed to Launch in Australia. We didn’t.
Every announced launch date comes and goes with not a word from the company.
Then on Dec. 15, another blog post:
We’ve been silent for some time. We are now just about ready to talk. And on Thursday, Dec 24th , 2009 @ 11 am we will. Via an audio press conference. We will have some major things to say. Publilius Syrus, a Roman author from the1st century B.C said it well: “Delay is hateful but it gives wisdom”. Perhaps, in our case, wisdom to be silent until we are ready to speak. As someone wise once said: “Do not speak unless you can improve on the silence”. With that standard in mind, we’ll be speaking on Thursday, Dec 24th, 2009. Hopefully, we can bring a bit of holiday cheer.
Then on Dec. 24, the following appears on the blog:
For the record, let’s sort out the truth from the BS, if we may:
Yes, it is true that we intended having a Press Conference today. And it’s also true, that in the last week, our CEO, became ill with a generally non-life-threatening but quite painful ailment- kidney stones. And it is also true he was admitted to hospital & thankfully is leaving today. So we’ve decided to cancel the conference.
What were we going to say? Pretty simple really. That we were finally launching in January. Are we? Yes. Have we been wrong before? Humiliatingly, yes. Will be wrong this time? No.
Given the turn of events, we’ve also decided, no need for another conference- we’ll just launch. Let the fanfare follow rather than precede.
What are the pre-requisites for launch? Many- but to perhaps overly simplify it, technology and funding. We feel, in our humble opinion, that we are more than right on the technology and recently we’ve proudly raised money and had more committed. So we can finally get out of the gate. During January.
It is now Friday, Jan. 29, 2010, almost 2 years to the date of the MIDEM fiasco, and still you guys are hanging on. You, my friends, are terrific investors! I've never seen such determination, loyalty and patience.
But I digress.
The so-called "A Team" ( I love that. Whoever came up with that one is completely clueless) is one-by-one looking for escape hatches.
And if you think that Jay Berman (who I thought had expired several years ago) can save this you're crazy. Do you really think that Edgar or Elio give a $$it about that old putz?
But what I find endlessly entertaining is how your boy AK falls into his rambling rants about his "detractors"--which are clearly pointed toward me. Let's be clear. If anyone thinks that some guy sitting in his home office in his boxer shorts can derail "the next Google", then somebody has to get a clue. But I must confess, I really do love the power he gives me.
Well, on second thought---I told you so.
Aren't you the person who posted the following on Nov. 4?
To all who are nervous regarding the launch in Australia....Allen and several key people have had a difficult time with travel arrangements today (some flight delays) they will arrive at their destination late on Friday (Australian time) so that would mean late tomorrow our time..... with the launch still scheduled for tomorrow as previously announced....it could be late tomorrow maybe even at the 11th hour but that is still the plan...
So with the silence that has taken a slow grip on all of us...we need to KTF and push through these quiet times knowing that there is going to be some very exciting news over the next 48 hours...
CONGRATULATIONS!!!
You have just been fed one of the lamest excuses yet for missing another launch date.
This guy is absolutely priceless. Gentlemen, what does it take? Many of you are like battered wives. You get beaten and leave but then just go back for more saying that "he's changed. He's so sorry and ashamed of himself. He promised me he would never do it again". And, of course, it happens over and over and over again. Always with the same results.
Someone posted that they would have the last laugh on me over this launch date. Well, are you laughing? Once again, as you like to say around here, KTF
but true. and I'm sure it hurts. it's your money.
Thank you sir.
One problem is that Qtrax has no real board of directors to keep Jesus in check. What the shareholders need to do is fire Jesus and hire a new CEO. A real one. That is if you want any shot of making your money back.
Otherwise, go ahead and keep lapping up the junk you're being fed and enjoy.
I'm telling you gentlemen, I have 39 years of experience in the music industry, 12 of the last in digital media. I know this business, especially the file sharing bit and licensing, better than 99% of the people in the world. And I know how it works.
Say what you will about me, but I've been right all along.
Boys boys boys.
First you get excited when your hero misses the upteenth "immutable" launch day, Oct. 29, by issuing a press release announcing, yet again, another set of launch dates.
Then you get all excited over the announcement of a pay-per-click deal with Baidu that anyone could get and is not a "partnership". And he does so in a press conference where he does not take questions? Only picks the questions he wants to answer. That, gentlemen, is not a press conference.
Then you get pissed when Baidu doesn't back up his claims. BTW, remember MIDEM? Jesus has no problem blatantly misleading the world press. Who do you think has more credibility, PC World or AK?
Then you all say that he must make the Australian launch on time. And when the date rolls around, you are fed the story that its been delayed because of travel issues and then find out that it is because Jesus will not fly coach.
And BTW boys, it's the interweb. I didn't know that you had to physically be in Australia to launch there. Of course, you're probably right as Jesus must be there in person to handle the media onslaught that is surely coming. Right.
It is now well into Friday, Nov. 6 and there's no whiff of your hero. So fellas, as you like to say, KTF.
I didn't post any comments and this is the first I've heard of it since I've been flying all day. So clearly someone is using my name. BTW, it's Rosso, not Russo
Young man, I think you have had the wool pulled over your eyes by your hero once again. This is not a partnership with Baidu. Far from it. It's an SEO deal. A friend at a major label told me a week or so ago that he would be announcing some sort of SEO deal but that hos label had heard absolutely nothing about any Chinese partners. And that he certainly wouldn't be launching a service on the 29th. My friend was right. What Jesus Klepshitz iis doing is trying to buy traffic. It's akin to an Ad Sense campaign. He has to pay Baidu in one form or another for every click/download they send him. Any inference otherwise is a complete lie.
If it were a real partnership, why would the share price have dropped since he made the announcement? It's because there's no there there.
I understand that you guys may be "sophisticated" pink sheet investors, but I'm afraid that you may be slightly misinformed about how this business works.
Once again, I'm happy to explain the realities of the business to anyone who is sincere. But I'm afraid that many of you may still be kidding yourselves about the prospects. And I can explain why, if you really would like to know. The funny thing is that most of it is just plain common sense. You must remember, this man could not pass a simple credit check. He has numerous money judgments against him personally--these show up on any credit check. He literally could not qualify to rent an apartment in NY or even get a Bloomingdale's credit card.
I've been 100% right about Qtrax thus far and will continue to be. You can be as pissed at me as you like for peeing on your parade, but facts are facts. Despite what you might think, I am actually providing you with a valuable service by providing real world experience and facts. I just can't stand liars and people being taken for granted. Even the jerks who love to bash me, which, btw, I feed off of. I just love it when you do that.
And also, I'm on my way back home tomorrow. And I would gladly fly cargo if it would save my investors money. I am very careful as to how I spend their money and that is one reason why they consider me and my team to be good stewards of
their cash.
Well boys, I've been watching from the sidelines for the past month with nothing but shock and awe. It boggles the mind the so many people are completely blind and continue to be apologists for this guy. It is truly a cult. This board is like Branch Davidian and Jonestown put together. Absolutely astonishing.
First of all, the last time I made an appearance here was Oct. 1. On my post of that day, I gave you an unequivocal statement. I said that there was no way that there would be a China launch on Oct. 29. Period. Well I hate to say "I told you so", but clearly you guys should really wake up and start asking questions. And by the way, I don't have a crystal ball. I just know what this is all about and how this business works.
So what does AK do when he doesn't live up to his promises? 1. He blames me. 2. He issues some ridiculous press release that says absolutely nothing. If you go back and research, just back to June 6 even, it is so blatantly obvious that he hasn't delivered even on the most basic promises. And how about the fact that he hasn't disclosed ANYTHING in SEC filings since first quarter of 2007? Doesn't that alone raise anyone's suspicions? Unbelievable! And you continue to praise this guy.
Millions in judgments and bounced checks makes it almost impossible to get funding. Don't you understand that? What is it going to take for you guys to understand what is happening?
But there is always the old adage that a fool is born every minute. So true, I guess.
And if you actually think that there will be any interested real journalists on that call you're nuts. NOBODY CARES! He burned his bridges with the media at Midem. It's a joke.
Frankly, if I wasn't having so much fun with this, nobody would be paying any attention at all. And all of this A Team baloney is ridiculous. You guys are very easily impressed, evidently.
Well I'm sorry that I won't be on that stupid press call on Monday. I'm on my way to London and don't have the time. Do you really think that he would let me on anyway? He's afraid because he knows that I would ask tough questions and wouldn't let him weasel out of answers. But I'm sure I would find it immensely entertaining. Probably a classic snow job. Don't forget, at Midem he told the whole international press corps that he had licenses and didn't. He sat on a panel and claimed that he had launched that very morning. And. hadn't
And come Dec. 17 when he promises a China launch, he'll probably announce another rollout schedule--province by province!
I just love this guy. He reminds me of Richard Nixon.
But hey, if you want to blow your hard earned cash it's your business. And BTW, I'm about to board my plane and it isn't Singapore Air First Class, I'm sorry to say. You're wonderful investors because I'm sure you wouldn't mind paying for those flights.
You'll be hearing from me again, I'm sure, as I can't resist chiming in every once in a while.