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I don't think anyone is interested in the patents. First they generate no revenue, second there are many OOB patents issued and in the market generating hundreds of millions of revenue already and lastly anti-keylogging is a non starter. it is useless on mobile devices and has no traction in the declining PC sector. If companies were interested in the patents they would have jumped by now.
SFOR is suing because they have a law firm that is doing it on contingency in exchange for a 70% cut of any settlements and because that is the only chance they have to get out of the +$10 million in preferred debt that they have. if the lawsuits fall the wrong way, the company then can only issue shares to stay alive and without the BS around the lawsuits the chances are not good.
It is unreal that the stock is back below 1 penny, just unbelievable. I guess that means the CEO is also not believable as well which is how the shares have dropped so fast.
by the way, 1.2 million shares traded today closing at around .012 which means that 1.2 million shares generated for the company about $8,500.00 or enough cash for Saturday and sunday, maybe. Pitiful
Joe, I don't think it matters if they launch the mobile software or not. Big important customers are not going to buy from SFOR. they would never get past the diligence process that any big company would require.
The problems with this company are not around mobile software they are around their patented software that nobody is buying. IF you hold all these patents and if your revenues never exceed basically $100,000 per quarter then in fact your patents are worthless. The fact that the revenue is so low is again testament to the fact that no reputable company would do a deal with them after even cursory inspection. there are just way too many alternatives.
Their reputed mobile software will not even do the low sales that their current business is doing. Virtually all mobile software is free and few enterprises will demand 3rd party software on their employee phones. Big companies like Symantec and McAfee who do billions in PC related security software are not able to translate that to the mobile platforms. there is no chance that SFOR will be able to do so.
I think that the CEO makes these announcements and promises to keep the funding for the lawsuits alive. But after 2 years of litigation it is apparent that none of the companies involved has much fear of SFOR and the patents. They probably cannot settle because then the upside of big legal windfalls goes away and the company then would have to fold.
Mobile software is a black hole for them and offers no upside, and I believe they already know that but cannot publicly admit to it.
I agree with imjoe. At the current price of 1 penny they need to issue 15 to 20 million shares a month to stay in business. Post split in March they had 4 million shares.
So since the split the stock is down 97% and shares outstanding are up probably in the 700 - 800% range.
I am not sure how you buy this stock right and I just cannot see any upside. They have to report earnings by August 15 for Q2. If there is even a sliver of good news they should announce early.
I remember 5 or 6 quarters ago the CEO posted a note on this forum specifically to address shareholder concerns about dilution. He guaranteed that the market makers who were lending SFOR operating money in exchange for shares would not sell those shares and were instead going to hold them. After that note in the next year about 5 billion new shares were sold. Seems like the same thing is happening again only in a much more accelerated manner.
would be interesting if the CEO would post again. Some of you claim to speak to him so maybe suggest that.
you guys are wrong. Kay announced that Mobile Trust or whatever the mobile software is called was being released in conjunction with the big security show in March and that they already had several beta partners. They should be able to announce real traction and revenue for Q2 and real partners and real metrics.
also everyone, with a stock price of .02 cents, they need to sell about 11 million shares this month to just pay the bills. "Post Split" they had 4 million shares outstanding. so we are getting further diluted by 200% EACH MONTH. they will have probably 75 to 100 million shares outstanding by year end, or between 1,800 and 2,500% dilution from the reverse split.
We can all read the print. that will drive the price back down to .0005 +/- which means that they will be back to selling 100 to 150 MILLION shares monthly and quickly back to another RS.
Quarter is over, if they had any uptick in performance they will announce earnings early before the August 15 deadline. Hopefully very early.
In the meantime we are headed for a month where they sell +10 million shares to pay the bills.
This lawsuit strategy is a loser. it is not advancing their business and it is not scaring user of 2 factor authentication technology (there are hundreds of them) to license the SFOR software to avoid a lawsuit later.
So to summarize: Nobody is signing new deals, very very little ongoing business, lawsuits are entering their 7th or 8th quarter with no movement and no settlement in sight which tells me that the companies apposing SFOR believe that they will win and SFOR will end up with -0-
They keep blaming revenue on whitesy but that has been a dead business partner for almost 2 years so that is not why revenue is off from last year. This company and its leadership are not honest with shareholders but I get that because if they were they would have a harder time selling so many shares.
Remember all shareholders, the 3 key executives at SFOR control 80% of all votes through 3 super shares. So whether there is 20 million shares outstanding or 6 billion they have an 80% say in what the company does. That is proving to be deadly for shareholders
I keep seeing the # of shares going out and this is like the pre-split days. yesterday more than 750,000 shares at less than 3 cents. SFOR gets 70% of the proceeds or 2 cents per share so they get $15,000 for 750,000 shares. $15,000 lasts them about 4 days so the dilution machine is back up and running at full tilt.
I don't think that the CEO ever imagined that the stock would decline by over 90% in just 3 months. The toilet bowl effect is pulling this stock price back to where it should be .0001. No question will be under 1 penny after they post the Q2 results which they can delay until late July.
They should consider settling one of their lawsuits to get some cash if they can convince any of the companies to do so which I doubt.
Surf this company shocks EVERY month. Stock is down 90% post split and shares have already tripled. I think they will get some bounces but in the end the company has no economic viability unless they can generate revenue. So far their patents have produced almost no revenue. We are now 2 weeks from the end of Q2 so will be interesting to see if they saw any customer successes. Likely they have not as they issue a press release whenever they get even a hint of good news.
I do know that they are selling millions of shares which in the end is what will drive this stock back to under 1 penny before the end of summer
The stock is down 90% from the split as it split at an adjusted price of .30 cents and is selling now at under .03 cents. I also think the outstanding shares have tripled in 1 quarter so basically the company value has declined about 97% since the split.
1.5 million shares today at .03 cents sold is $45k gross, and net proceeds to SFOR is $31k or about 1 1/2 weeks cash at their burn rate. 4 million shares outstanding at the split, likely in the 12 million range now. The management team is very consistent in 2 ways... THey cannot generate any revenue and they can sell a whole lot of shares.
I would really be interested in Pension weighing in on this. He is one of their biggest supporters.
WOW... That is all I can say. SFOR is now 70% below the lowest price that NASDAQ allows of .0001 So we have lost ANOTHER 70% post split AND the stock has now been diluted again by over 280% which means we have lost actually over 95% FROM THE LOWEST LEVEL PRICE THAT NASDAQ ALLOWS.
The company is printing shares and doing it without remorse. Sales below a local coffee shop...Check. Debt rising every month...Check. Enterprise value declining every month...Check.
This is a disgrace. They should just say that they are a company going nowhere. They would still be able to sell shares and stay in business but they would eliminate the fraud angle.
I would love for all the advocates and unabashed fans of Mobile Trust to tell me if you could have imagined that 1 YEAR AFTER the big PR announcement on this technology that the company would not have 1 SINGLE DOLLAR of revenue yet.
OT I agree. This is a desperate move and a nonsensical release even for SFOR where all releases say nothing. Shameful.
Eleniak be prepared for the blowback to your post. The die hard SFOR owners, who have all lost 99.97% of their money do not recognize as relevant that the company has $11 million in preferred debt, has lost $33 million cumulatively, has never made a profit, has less revenue than a local coffee shop and the stock is down 65% from the split and 50% from the lowest statutory price allowed by the Nasdaq of .00001
They will say you are negative and that the history is not meaningful. Crazy!!
Actually I have not ever focused on that until Lazyeye just commented. Is there a way to see how many shares the CEO and the other 2 execs have been selling over the pas 8 quarters. Yahoo finance does not show any but it also says N/A
have the Exec's been selling hundreds of millions of shares?
I listened to the webex and still think that they are Full of Sh**. The CEO affirmed that he still believed in the full year guidance of $800,000 to $2,200,000. After 1 quarter they are at 11% of the low end guidance and 3% of the high end guidance which means even the very low end of the guidance is not going to happen.
More troublesome is that again they are assuming that any financial settlement of any of their legal actions is counted as revenue. That is incorrect. legal settlements would be categorized as Other Income and not revenue.
This is still a $300-$400k revenue company losing $+$3,000,000 and needing to sell 100-200 million new shares to stay in business
I commend them for communicating, but they are nowhere near a recurring revenue of$70,000 per month which is the very lowest end of their guidance
you can find it in their 10K when they show paying $240k in legal fees. They are chewing up $$$ on this
Patent lawsuits all contingency
SFOR has stated several times in their filings that the Whitesky lawsuit is not a contingency case and they are paying legal fees. The patent cases are all on a contingency basis
surf I believe this is some sort of breach of contract lawsuit against whitesky so there are no millions to win. maybe tens of thousands but not millions. this lawsuit is about 6-8 quarters old but did you see that in every 10Q they blame their pitiful revenue on white sky even though whitesky was not part of last years revenue either. I think the lawsuit is a straw man to sell more shares to the public. they are doing a great job of that by diluting outstanding shares 100% in 1 month. Even for SFOR that is a new record.
REminder to new and old shareholders. SFOR needs $400,000 in cash to stay in business each quarter so they sell shares. Since they cannot get financing from any credible financial institution they sell shares to market makers at a 30% discount and the MM sell at market and make the spread. Actually a pretty creative scheme on the part of the company.
here is how the formula works. SFOR needs $135,000 per month so in order to get that they sell shares. Todays price is .06 cents.
so 3,000,000 shares X .06 cents = $180,000 X 70% proceeds to SFOR = $126,000. More shares in the market drives the price per share down which means they have to sell even more shares. I predict a sub 1 cent price before Q3 and about 250 million shares outstanding by year end from the 4 million that were outstanding after the reverse split. then in 2015 another RS and the dance starts all over again
WOW 100% dilution in 1 month. I wonder if that is a record for a stock that has Reverse Split 2X in the last 4 years
I guess we will see. who owns shares is much less relevant to me than who are their customers. At the end of the day it is ONLY the customers that will drive the company value. Shareholders don't drive value but they can add to stability.
Yet again they cannot report their quarterly results on time even though it will be a negligible amount of revenue. There is just something about this company that always smells.
Lawsuits will have a positive impact if they prevail but I disagree with surfcast I don't think any company would settle with them given their financial status. It would be crazy for anyone to settle and again that assumes that SFOR is in the right. All we know is what they are telling us and one thing that I not in question here is that the CEO has blatantly lied to shareholders many times in just the last 18 months.
we'll see.
Pension, every industry has winners and losers. SFOR is a textbook example of a LOSER company. No revenues, no customers, no cash, no equity, and the only track record they have is 100% bad. This is a 14 year old company that has never had a good run, NEVER. The only thing they do really well is sell worthless shares of their company. They do that really well, year after year. I agree, the space is hot, but it has been hot for a decade. Cyber crime did not start last year, this is already a mature industry and SFOR has not been able to get in the front door for over a decade.
Einstein's definition of insanity applies here. They do the same thing over and over and unfortunately they keep getting the same result.
Isn't the stock down 70% from the RS? Seems crazy to say "that is why the stock is rising".
surf I doubt any company is getting nervous about SFOR. it is down 85% post split so they are even more irrelevant than before which does not seem possible even. Once again they cannot file their 10Q even though the revenue is in "NANO" territory. yesterday was a nice bounce, today back to normal. this is going to be a sub penny stock again pretty soon.
yes you make a good point. but at the end of the day the only lawsuit that means anything is SFOR v Microsoft. Microsoft has a long history of litigating and I would believe that their attorneys are every bit as good or better than SFOR. we'll see but not likely for years. These things take a long long time and there is no reason for MSFT to speed it up nor any of the other companies involved in litigation. If you were looking at SFOR you would just wait for them to file chapter 7 and go away
Contingency does not mean a win. Blank Rhome is a good firm but so is the firm representing Microsoft. I have to say I am stumped as to why they would do a contingency arrangement and at the end of the day the only explanation I can think of is that instead of the normal 35-40% contingency lawyers get they must be getting a much higher %. Then it basically becomes an arbitrage decision among the partners. But still really strange that a top flight firm would take a contingency deal.
Surf you are a relentless SFOR supporter but you say every month that the next 6 months will tell the difference. You say it every month. look back 6 months, look back 12 months. The stock closed today down just under 90% LOWER than the reverse split price. 90%. I think it is much more likely that Scotland is right and SFOR will be a sub-penny stock again than they will somehow miraculously start showing good results. I hope they win the lawsuits, but it wont help the company because it will maybe get them enough cash for a year. but that won't fix the company. the real problem is no large enterprise customers are buying their technology and that has been the problem for 13 consecutive years.
good question and very difficult answer. The company itself has no value as it has lost money for 13 straight years. the patents likely have real value but today they produce no revenue, or very small revenue and patents are valued at a formula that is principally impacted by future revenue streams. If they win the OOB lawsuits then they will have future revenue streams of some sort, or the companies will just change their technology to include a different technology.
The challenge is that the company has +$12 million in preferred debt so if they sold their patents for $10 million there would be no company left and shareholders would get none of the proceeds of the sale. So I think there is hope for the debt holders and hope for management but no hope for shareholders
You are not reading this right Brooklyn. What it says is that 2 Resellers have shown an 84% increase. it does not say that the category has shown an 84% increase. This is a trick bag PR that obfuscates their issues. and by the way the keylogging business is a useless business, the future of the company if there is any is the OOB business. that is where the important patents are, that is where the important lawsuits are. The keylogging is a dog and does not generate any reveue so 84% increase on nothing is still nothing.
Brooklyn, see below the quote from the release...
"two of its key GuardedID marketing partners have experienced a dramatic 84% increase in sales during the first quarter of 2014"
also see another quote from the release...
"While the 84% increase in GuardedID sales is great for the bottom line, even though starting from nominal levels"
Apparently you don't speak SFOR. If you did you would have seen these senseless PR's before. The main resellers of SFOR right now are doing it via youtube videos. Q1 results will show what the 84% really means. I would expect not much
Surfcast you should actually read the article. the 84% was 2 small resellers representing no revenue. this is the best example of why investors don't trust the management. it is misleading headline
the Q1 results are due out on Thursday. We will see how the 84% translated into revenue. and we will see how the RSA press release translated into revenue.
Pension let me remind you again you posted almost the exact same thing back when the shares were .0003. since then the stock has lost 95% of its value (AGAIN).
sooner or later you may be right, but I don't think you can buy enough at any price because it only goes down. It may spike for a day or 2, but then reality kicks in and it is back to no revenue, no customers and no cash.
Surf where is all of this information that you say is readily available and looks so promising?
Stargazer, this is the 6th straight "this is the year" YEAR for SFOR. the Last 5 have brought 2 REVERSE SPLITS and massive losses all funded by dilution. This is a dead puppy being propped up by ill informed investors who see a 4 cent share price and think it has upside. the upside in SFOR has always been an illusion.
Pension I too think there will be a run. the question is will it occur when the stock is at .003 or 90% lower than it is now which is 85% lower than the post split price. It is hard to recover a stock that is down this much this fast. Now if they have real news that might be something different. I think the only thing that will move this stock is them winning or settling the OOB lawsuits where they will get recurring license revenue from PHone Factor and others. Then the company has a chance. but that is likely years away and their ability to survive for that amount of time is 100% dependent on selling more shares. it is a toilet bowl strategy. the whiteky lawsuit is a contract dispute so that wont really have any long term impact on the company. if they win they get a few months cash needs and if they lose they are out the legal fees. so that is really not a stock bouncer as it has no impact on the company going forward, win or lose
I think the bounce is likely to happen when the stock is at 1/2 cent or lower and that is already a whole lot lower than it is now
pension, I distinctly remember you saying PRE SPLIT that this stock was going to go up 3-5x and you were loading up. then again PRE SPLIT you told all of us that after the split the stock would run because of the low amount of shares. Since the split the stock is down 83% (which seems almost impossible) and now again touting that you think it will run again.
The odds say that sooner or later you will be right. sooner or later it will have a little spike but .45 cents is a pipe dream. The company is insolvent, with no cash and no revenue and no interesting customers other than their law firm who almost had to do a deal. Q4 revenue was $67,000 and Q1 is over with reporting do out next Thursday. We will see. but if they have another sub $100k quarter with another +$300,000 loss this stock could be back in the trips really soon.
I think it is not likely anyone has made money on this stock. don't know how it is possible. it is down 99.99% over a 5 year run, yes there are some highs and lows but mostly straight line down and to the right. too bad, company should have been relevant.
I feel really confident in saying that a keylogger from SFOR would have no impact on any website. not relevant, not an enterprise solution, not even on the same planet
I will say I do agree with Pension that the only way to make money on this stock is to watch it persistently because there will be days when it doubles based on some news or just getting on a small run. in the past it has always floated back down to the nano penney land but bounces do occur.
I don't really follow this logic Dman. if you invested $1,000 in SFOR last year today you have about $7. The stock was down 99% last year and down another 80% since the split. so if the stock goes up 500% in the next 30 days you will have $35 from that initial $1,000 investment. So where exactly has "long and strong SFOR" paid off and how can it really? Post split the stock needs to get to $4.50 to just get back to even. Anyone on this Board believe that SFOR will get to a share price of $4.50?
I don't either, I think .45 cents would be a small miracle.
they are already dead, just not buried. company is insolvent and that has not changed for more than 3 years. somehow they just keep getting new investors which seems like it is great for everyone but the new investors just keep buying new shares and the stock keeps diluting and going down. my opinion is the CEO really doesn't care about the stock price, it just doesn't matter to him. he print new shares and the impact on existing holders does not matter. Could be because his shares don't dilute so that makes a big difference.