A RESPONSE
Rule #1 in investing is: DO NOT INVEST MONEY YOU CANNOT AFFORD TO LOSE

Yes, but shareholders have rights... if they have been misled about the commercialization program/timeframe then they have every reason to raise concerns / be angry
Retail investors/institutions will challenge management teams, boards of companies all over the world if they feel there has been mismanagement, lack of transparency, broken promises - REGARDLESS of whether they can afford to lose money or not.
You think the small shareholders and pension funds are happy with Boeing at the moment?
Management/Boards should ALWAYS be accountable to investors in all companies whether they are as big as Boeing or as small as SMME

"I wonder if anyone knows how long it takes and how much it costs to bring the "described" Credit/Debit; security card SMME says it has developed to market?"

Well clearly the answer is about 10 years longer than first promised!!!!

"As for what Chaya has been allowed to receive as compensation, with board approval, I don't care if her personal wealth surpassed $100 BILLION"

What do you mean board approval? You mean Chaya herself deciding what she will get-- she is the board -- she has and will likely always controls 51% of the voting rights
I think the average SMME shareholder would be happy for her to get very rich but in a way that fairly compensates all of the shareholders who have given the company $26 million to spend on this 15 year story

There may well be a card that works that may be on the cusp of being commercialized-- the fact that the stock has fallen from $1.00 to one cent tells you very few believe it and most of the existing shareholders have given up

Good for you, retaining some faith
But not sure you understand why people are so cynical, angry and frustrated

When this company listed, $5,000 got you 3,333 shares...($1.50)
A few years later, $5,000 got you 25,000 shares ($0.20 )
Now I assume they are still raising cash and I assume at 1 cent --- you couldn't raise at a premium given the history
$5,000 will get you 500,000 shares

Along the journey all sorts of wildly exaggerated claims of "things about to happen"

So those like me who ignored the red flags ( one person company, series B shares, random awarding of more series B shares, no oversight over expenditure, 51% voting rights giving her total control and clearly an inability to get funds from institutions because of the aforementioned... where does one stop)

Even if this stock rises from the dead have a look at how she has set up the profit sharing scheme re revenue....

Try and reconcile that revenue incentive scheme with how investors have been treated
Perhaps she could assign those Series B shares to existing investors

Let me know when you can attend an Annual Gen. Meeting and discuss with her this remuneration scheme

"... it is nearing completion of the final stage manufacturing of its biometric card"

It has been nearing completion for 10 years...stock has fallen 99%

Do they have any cash ? She has spent $25 million so far... I say she( singular) because it is a one person company

Best to post something when they have finally completed the card

The Smartmetric 10 Year Cycle
Make predictions of near term commercialization, raise money, find an excuse for failure to deliver, make new promises of bigger things, raise money, find another excuse...…. keep this cycle going and going and going until you find another story to sell, raise money …….
In the meantime share price falls from $1.50 to 1 cent, the CEO has 5 million Series B shares, backpay owing, 51% voting rights and total control of the company

STOCK DOWN OVER 99% SINCE LISTING

Stock down 99% -- are they still raising cash?

STOCK DOWN 99% SINCE LISTING

Nearing completion... think she said that in 2019,18, 17, 16, 15, 14 ,13..2010....
Gotta be right one day?

After 4000 weeks this stock is down 99%
What is the latest excuse being offered for not commercializing?

Stock down 99.1% since listing

Pity about the trend
$1.50 to 1 cent and $25 million spent

BUT RED FOR THE LAST 4000 DAYS

A new book to be released

Avoiding Penny Dreadfuls
Chapter 1: Avoid one person companies..
Chapter 2: Look closely at the corporate structure
Chapter 3: Note carefully: How are performance based shares awarded?
Chapter 4: Transparency... who oversees the expenditure?
Chapter 5: Why you feel dumb and dudded when you fail to do the above
Chapter 6: Smartmetric- A case Study: From $1.50 to 1 cent

Good thing the CEO awarded herself all of those "performance based" Series B shares
Stock trading on 10 year lows
Imagine how many Series B shares she will award herself, if something actually happens
Perhaps she will experience a " generous moment" and distribute the Series B shares to all of the shareholders who were persuaded to jump on board at $1.00, $ 0.50, $0.20, $0.10, $0.05....and told it was all about to happen

They should make a film on this stock...comedy/tragedy

Good investigative journalism

You would hope that it was not a misleading statement but...

Related Party Transactions

The Company’s Chief Executive Officer has made cash advances to the Company with an aggregate amount due of $14,059 and $3,759 at September 30, 2019 and June 30, 2019, respectively. These advances bear interest at the rate of seven percent (7%) per annum.


So the company burns through $200,000 USD for 3 months, the CEO wants $47,500 for salary for said period but due to lack of funds that $47,500 is deferred
But who knows how that $200,000 is spent...
Then she wants interest at 7% for the $18 k she has advanced to the company


And the reason there is so little cash in the account is ? the reason she needs to use convertible debt ????

Meanwhile the shareholders who have "advanced" the company $25 million at $1.00... $0.20. $0.15... what are they raising at now 3 cents? or is it more convertible debt?... the shareholders run up more and more debt on their Chaya Credit Card...

But wait there's more-- if the company ever generates revenue she has awarded herself a very generous inventive scheme... and then she can dilute everyone by converting her SERIES B SHARES

Freakish !

The total domination of this company by Ms.Hendrick laid out in black and white in the 14 C


The 199,318,992 votes held by the majority stockholder include (i) 58,627,778 of Common Stock and; (ii) 210,000 shares of Series B Convertible Preferred Stock held by Applied Cryptography, Inc. (“ACI”). The 210,000 shares of Series B Convertible Preferred Stock represent 100% of the issued and outstanding shares of Series B Convertible Preferred Stock. The outstanding shares of Series B Convertible Preferred Stock are entitled to vote on any matter with the holders of Common Stock voting together as one (1) class and shall have that number of votes equal to that number of common shares which is not less than 51% of the vote required to approve any action, which Nevada law provides may or must be approved by vote or consent of the common shares or the holders of other securities entitled to vote, if any. As of the Record Date there were 275,865,126 shares of Common Stock outstanding. Accordingly, 210,000 shares of Series B Convertible Preferred Stock are equivalent to the votes of 140,691,214 shares of Common Stock.

So not only can she convert the Series B shares at 50: 1 into common shares they also give her 51% of the voting rights

Don't worry investors and the $26 million you have gifted the company
I control everything -- how the money is spent, how much money you investors owe me, the incentive scheme for my personal company if we ever generate any revenue, allocation of Series B shares...

What a stark reminder in the need to do serious due diligence before investing in companies like this
Was this information regarding the voting rights really accessible 5, 10 years ago?

No wonder she has given up on conference calls

How much money did she invest in the company?
Since this company has been listed, has she ever been to Australia where the majority of investors reside?
If not, why not?

Correct me if I am wrong- but in the last couple of SEC filings we are now finally learning the extent, in a numerical sense, of Hendrick's total control of the company
Was this information publicly available 5, 7 , 10 years ago about her dominant voting rights?
( Yes, I still berate myself for not carrying out more thorough due diligence )

Why the need to increase from 300 million to 600 million?
Perhaps that tells you a lot about where she thinks the share price will be sitting

On October 17, 2019, the Company received a written consent in lieu of a meeting in accordance with the Nevada Revised Statutes by the holders of 72.25% of the voting power of the Common Stock authorizing the following action:


approval of increasing the number of shares of Common Stock the Company is authorized to issue from 300,000,000 to 600,000,000 as provided for herein (the “Increase in Authorized Shares” and the “Action”) and filing of an amendment to the Company’s Certificate of Incorporation to effect the Action.

Accordingly, your consent is not required and is not being solicited

Love that last sentence

So 5 million Series B shares convertible at 50: 1 = 250 million ordinary shares

But wait there is more... I need to correct my previous contributions. I noted Ms. Chaya Hendrick controlled 51% of the voting rights... she in fact controls 72% of the voting rights ( see latest filing )

PLEASE NOTE THAT THIS IS NOT A REQUEST FOR YOUR VOTE OR A PROXY STATEMENT, BUT RATHER AN INFORMATION STATEMENT DESIGNED TO INFORM YOU OF CERTAIN ACTIONS TAKEN BY THE MAJORITY STOCKHOLDER.

( translation … you just put $26 million into my company and I will still control totally everything and spend it the way I want.. )

She in fact controls 72 % of all of the voting rights

whilst at the same time the company continues to accumulate deferred salary liabilities to the one and only Chaya Hendrick - CEO, CFO, COO, Expense Manager, controller of voting rights, distributor of Series B shares, responsible for implementation of incentive payments to her private company..
but she really cares for the shareholders that have pumped in $26 million to date ???

"SmartMetric (SMME) is a very well structured and responsible company that is transparent to investors …. "

That gem must surely qualify as one of the most delusional contributions ever on this forum

Well structured … WT Beep …
1. a company 51% controlled by one person with no transparency over how 25 million dollars has been spent over the last decade
2. Has already awarded herself large number of Series B shares because ummm … enlighten me please
3. Can award herself millions of more shares upon converting her Series B shares
4. Has implemented an extremely generous incentive scheme for herself if the company ever generates revenue... agreed to by whom?
5. Apparently the company is about to start generating sales but the share price keeps slipping and she is raising cash via convertible debt ??????… and that prompts the question why is she struggling to raise cash ??
No prizes for getting that answer
6. How did she and that guy down in Melbourne raise all this cash over the years... Answer: by continually embellishing the story about how close commercialization was

How much money has she directly invested into this company?

My guess is that the vast majority of investors have written this stock off and just hold on to a glimmer of hope that one day they get an opportunity to sell their stock before the CEO dilutes everyone again

Which was the larger?
a. the value of the shares purchased
or
b. the brokerage paid to purchase said shares

Our CEO and Chairman, as the sole holder of our Series B Convertible Preferred Stock, controls our company.

Chaya Hendrick, our CEO and Chairman, holds (via shares in her name or shares in the name of an entity she controls - Applied Cryptography, Inc. (“ACI”)) all 610,000 shares of Series B Convertible Preferred Stock outstanding. The outstanding shares of Series B Convertible Preferred Stock are entitled to vote on any matter with the holders of Common Stock voting together as one (1) class and shall have that number of votes (identical in every other respect to the voting rights of the holder of common stock entitled to vote at any regular or special meeting of Stockholders) equal to that number of common shares which is not less than 51% of the vote required to approve any action, …

Each share of Series B Convertible Preferred Stock is convertible, at the option of the holder, into fifty (50) shares of Common Stock upon the satisfaction of certain conditions and for purposes of determining a quorum of a shareholder meeting, the outstanding shares of Series B Convertible Preferred Stock shall be deemed the equivalent of 51% of all shares of the Company’s Common Stock entitled to vote at such meetings.


Accordingly, Ms. Hendrick can (without the approval of our other shareholders) elect our entire Board of Directors and determine the outcome of various matters submitted to shareholders for approval, including fundamental corporate transactions.


Voting control by Ms. Hendrick may discourage certain types of transactions involving an actual or potential change in control of us, including transactions in which the holders of our common stock might receive a premium for their shares over prevailing market prices.


Oh so that's how you can award yourself 610,000 Series B shares and control everything..

We entered into a royalty and licensing agreement with Chaya Hendrick, our CEO, which requires substantial payments by us on an annual basis and additionally in the event gross revenues are derived, which could harm our financial position.

Pursuant to a licensing and royalty agreement, entered into on September 11, 2017 by the Company and Chaya Hendrick, our founder and CEO, we received a license to certain patents related to our technologies until the expiration of such patents in exchange for the following : (i) issuance of 200,000 Series B Convertible Preferred Shares, (ii) 5% of gross revenues derived from the sale of products derived from the patents, and (iii) annual payments beginning at $50,000 per annum, increased by 100% of each previous year (offset against 5% gross revenue royalty payments). We believe these patents are instrumental our business plan and if we are unable to make such required payments under the plan, Chaya Hendrick may terminate the agreement….

Define "greed"

Let's do some mathematics.. $50,000 increasing by 100% over the previous year.... if we do that for 10 years ten years... oh of course its offset against the 5% of gross revenues

When she says "We entered into an... agreement"
Who is "we" ?

What is the latest excuse?
On the surface, there appears to be some real
progress but no doubt there will be some "small issue" or "tweak" that needs to be resolved with the card and that will require more money and "once we get that money".....yada, yada, yada
( that's what they told me 6 or 7 years ago when I invested in this gem without doing proper due diligence... dumb! )
Let me guess they are still having to raise money just to save themselves from becoming insolvent
No doubt that man down in Melbourne will confirm that.. he will be on top of the latest excuse

Convertible Debt

This company had convertible debt earlier in the year

Does anyone know its status ?

Of course another indication that the CEO is struggling to raise money

Why because serious investors dont want to invest in one person companies- something I realized too late

Likely Answer

They have barely any money in their bank account. Once the next SEC filing comes out we will have the true picture on their cash position

Why dont they have any money?

Ask Chaya--- do you think serious investors want to put money in a one person company where that one person can award herself millions of shares by issuing hundreds of thousands of Series B shares that convert at 50: 1
and dilute their equity

Not likely

What's the latest excuse being rolled out for the 10 year delay in commercalization

Yes,

Let's put our faith in her????

IPO Year was it 2006? IPO price $1.50
Current price 2019 ? 3 cents

What was she telling investors at $1.50 ? at 20 cents, 10 cents, 5 cents?

Give her credit for one thing. She manages to rotate the excuses on a regular basis and makes them persuasive enough to keep the company a few dollars above the insolvency line

What is the latest excuse? Serious question, people on this forum probably speak to that guy down in Melbourne... he's the spokesperson for the excuses.
Another tweak required in the technology? Something not right with the manufacturing facility? They need money to pay the manufacturer and/or make adjustment to the cards?

Voting Rights

So the CEO holds around 59 million shares - 23% of the stock
She holds 610,000 Series B shares --- so she can convert at 50: 1 hence another 30 million shares

And there are lot more Series B shares she can potentially issue to herself

So does anyone know how the voting rights work because this CEO absolutely controls everything?

Has there ever been an annual general meeting involving anyone but her?

And she still awarded herself lots of Series B shares

The lesson from this sad saga.. Never Invest in one person companies-- there is no oversight over anything she does

IPO $1.50
Current price 10 years later $0.035

Down almost 100%

No card, no trial, no contract, no oversight over the CEO's spending
No shareholder with any right to challenge how and when Series B shares are allocated
They convert to ordinary shares at a ratio of 50: 1

Any guess as to how much cash they have left when the next SEC filing is released?

It's August 2020

Still no card, no trial, no contract, no oversight over Ms. Hendricks' spending and series B allocations, another million or two smoked on expenses and the sole person in control of the business remains the woman who took this gem to IPO at $1.50
Stock trading at 2 cents, raising cash at 1 cent, barely $5000 in the bank but still promising the world

Ecuador embassy?

"Yes, SMME management has developed the most versatile and functional platform to allow widespread use of its biometric scanning technology for fraud protection on a global scale."

She, being the only person in the company, said the same in 2012,2013,2014,2015, 2016,2017,2018, 2019 … 2020? if the company survives that long

What did she say to investors back 10-15 years ago when she went to IPO at $1.50 ??
What did she say at 20,10, 5.... cents when she was raising capital?? What is she raising money at now???

No wonder she never sets foot in Australia. My guess is if this goes up in flames soon, she will change her name again and head to the Ecuador embassy in London

Is the SEC a regulatory agency?
It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States

Useful Information !!

YAWN !!!!

"Based on the years of engineering that has gone into the SmartMetric card it is little wonder that we have a solution that is substantially more advanced than what the more recent entrants have developed," said Chaya Hendrick

You haven't delivered a solution yet Chaya-- you haven't got any money to do anything. You are close to insolvency

Comparing your card to those of competitors is irrelevant until you actually produce a card and get a contract

Whatever happened to your SECURITY CARD?????????????????????????

Welcome Pants

Re the CEO... well where does one start?
She exercises total control over the company, there is no oversight how she has spent $25 million of investor money, she awards herself massive amounts of shares for achieving zero revenues over 10 years ( have a close look at the SEC filings and Series B shares they convert at 50: 1)
Never had a shareholder meeting in person- and despite promises of nearby riches FOR THE LAST 10 YEARS, the company is always a couple of dollars away from insolvency
No idea how she has fixed the voting rights-- essentially it is a one person company - well there is some gent down in Victoria assisting her who seems excited but doesn't appear to know much

As to her past, I am told you have to look up the name Colin Hendricks- Colin became Chaya
Was hoping the feminine touch would save the company but that hasn't worked out either
If I were you I would move on - this forum is just there to remind punters never ever invest in one person companies

Hmmm! Years of dedication .. try years of embellishment and blatant lies
How much money do they have in the bank?
I suspect they are close to the point of insolvency
How has the $25 million been spent? Who had any oversight over her spending??
Until she can demonstrate a card that works, get a contract or at least a trial then it is just a waste of everyone's mental energy
The only point of this forum is to remind investors never ever to invest in a company controlled by one person again no matter how much riches they promise

She seems to travel all over the world... how many investors has she ever met?

Who holds all of those Series B shares? No prizes for guessing
Who awards herself Series B shares? Any oversight? No prizes for guessing
Who spends the investors' money with no oversight? No prizes for guessing
How do the voting rights work?

Come back to this forum when she has delivered something called revenue- it has been promised for years and never happened

For most investors, this company should be the subject of an SEC investigation

You have to hand it to Chaya--

This stock started its life at $1.50 over ten years ago - have a look at the chart and set the duration to max.
A generation of investors have been duped into thinking something was going to happen in the next few months- pity the initial investors at $1.50
She randomly awards herself massive amounts of shares ( based on what? - performance LOL!!!!! )
There is no proper oversight on her spending - who knows how $25 million dollars has been spent.
Apparently she is not the brains behind it at all - there are some people in Israel who have created the technology but no prizes for guessing who will take all the credit ( plus the shares and the cash )

Has she ever successfully completed a business venture in her life?

But having said all that, the company still survives.... barely, as it always looks like it is on the brink of insolvency

Anyhow Chaya - The Ultimate Survivor , please remember IF this venture ever gets off the ground, the investors are the PROPER OWNERS of this company - the people who put $25 million into this business. How much money did you put in?

You are meant to work for us - get on and actually deliver something