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The guy who listed Leatt is going to jail for fraud by the SEC, interesting.
http://www.newsfirst5.com/news/former-springs-ceo-apologizes-on-his-way-to-prison
I would suspect the Leatt shares will soon follow in his tracks.
Just a guess to, but that is lots of stock of braces that are not selling/sold.
I guess they might allude to whats new at the shareholders meeting to keep everybody well distracted from the real issues. But again just a guess.
NETT LOSS $400k for Q2.
I do not understand the previous Press Release saying no stock for Q2 when they have $2M worth of stock in inventory according to the audit.
Their marketing efforts are clearly lacking and not stock levels.
At least Leatt has now moved up the "Dark" band from Grey Sheets to now Red Sheets. Still no good i say but at least a move up.
I do not sit well with the latest press release on the New Zealand deal. One of two things is happening here, 1 they need to make more profit so cut out the middle man or 2 the middle man was not doing a good job. I suspect number 1, as NZ is not that big of a market to have wasted money to do that move, so they are obviously counting pennies at the moment.
Any idea no matter how good, is no good with bad management (the opposite is also true, bad idea with good management). So you are absolutely right about don't bet on the product.
Anyway i hope there is some good feedback here on the Shareholders AGM. I really want to know how that all works out.
Also, does anyone know of other Message Boards that are active on the Leatt Topic? Please post links.
Nobody can sell shares, i have tried, so i feel sorry for the employees who got paid in shares, no selling going to happen there.
Charms, just post the answers here for all to see, assuming you get them to answer them or even get to ask them. They might not allow questions as they would surely expect some they do not want to answer.
Hey, those were my questions, anyway i hope somebody asks them as i would like to hear what the answers are to.
They do seem obvious questions but it begs the real question how was it allowed to happen that it is only years later that the shareholders get to meet and have a say.
Anyway whoever goes can you please give some feedback here so we all know whats is going on.
Interesting to see an AGM planned so thought i would summarize Dr Leatts situation vs shareholders.
2007 DR Leatt Annual Salary $240,000
2008 DR Leatt Royalty $957,081
2008 DR Leatt Annual Salary $408,000
2008 DR Leatt Royalty $925,551
2009 DR Leatt Annual Salary $481,440
2009 DR Leatt Royalty $900,000 (Approx)
TOTAL DR Leatt $3,912,072 (excludes bonuses, other cash payouts and shares etc)
Compiled from published audit results etc by Leatt Corp.
SHAREHOLDERS $0,000,000 (exactly)
Nuf said I would say as a "shareholder"
Charms I suggest you attend and ask your questions there and hope you live near to Cape Town or DC.
That is only a few $ worth of shares so really nothing to get excited about.
Do yourself a favor and take the last two audits and put them side by side. You will see a lot of BS between the two. I am not surprised they changed auditors between the years, cause the same auditor would never have signed those off.
I agree, this is a complete waste of time cause the shareholders are last in line and have no leverage at all or consideration from the management.
So to sum it up:
Dr Leatt gets (in 2008)- $ 900,000+ (royalties) plus $240,000 (salary) = $ 1,2M TOTAL
Management (in 2008)- $ 650,000+ (MD + COO + Marketing Director)
Investors get $0,000,000 (ever)
MABY THE SOLUTION IS A CLASS ACTION SUITE TO GET THE SHAREHOLDERS SOME RECOGNITION
Oh and i nearly forgot all the shuffling of companies, Leatt Corp (we all invested in), Leatt Corp Branch (a subsidary), Leatt Holdings (owned and controlled by Dr Leatt), 211 (a subsidary), 311 (a subsidary), Exceed Holdings (who knows but presume it was Leatt Holdings but it is not clear), IT Company (owned by an employee), Wages Company (owned by Managment) etc etc etc. Someone should call Jerry Springer!!!!
Called the SEC and was told that Leatt had applied to be Non Reporting which means they do not need to publish anything.
It is almost mid April and i have tried to contact the IR company to get an update on what the heck is going on with the audit etc. SO with the above Non Reporting we will probably get nothing out of them
My attempts have been with no success, nobody answers the phone at Richter and i tried everyday this week with no reply back.
Anybody else heard something new.
My vote goes to for Dr Leatt being a scumbag based on his shady past, cause unless he went to the school of "dont do that again Bob" he will just repeat the fraudulant pattern he used before.
If the numbers come out by the middle of this month as people seem to believe it will i will be very supprised.
Actually i dont care what happens, i just hope we can trade shares soon at a reasonable price!
Stock is a game of highs and lows but that does not mean you would need to sell yourself short. My exit strategy is 25cents, so if someone wants to sell just to get out and make a loss in the process well then thats their exit strategy but who knows anyway.
Everyone should make money out of this one and noboby should to smoke crack to achieve that. On the other hand everybody seems to be happy with the status at the moment so i suppose that is why they are gettign away with the current stock situation as it is.
It is a good idea just poorly managed i would say, yet all the people who backed this idea are left hanging (due to no volume trades), well thats my opinion anyway.
Rollem, this is not an arguement i am trying to make with you or anyone so please dont take what i have to say the the wrong way and no disrespect either.
Either you bought at 2cents or have no stock cause if you think 25cents is flying high there is a good chance those meds are yours.
Makes me think thats why you can sit back and watch this all happen without seeing the obvious.
So either you have stock or you dont, and time will tell who is correct me or you, so i hope your meds are strong enough to last the ride. It is easy to sit on the side now isnt it.
Whine yes i am, cause when you look at the big picture this should not be the situation with this company.
Anyway, enough of that, if you want i can refer you to my broker in NY and he can do you a deal. I got a few hundred thousand ready to go at 25cents.
Disagree, they have all their eggs in one basket, none of the other companies do that from the list mentioned.
Bold i dont think so, a company that is in its third year of sales cannot be so bold, that would be the biggest strategic mistake in my opinion. Astars has been around for years and has a product line that is second to none and you really believe they will not have a "toe hold" on the market jsut because Dr Leatt said so. IF anything that will give them the insentive to make it happen.
Look at all the big names in MX, what are they using, NOT Leatt, BUT Astars. And yes you can argue that the Astars price is crazy at $600+ but all their products are expensive and people buy them. They are a marketing machine and you cannot argue that unfortunately.
My money is on Leatt but i see to many flaws in their approach, very bad marketng (one or two ads in MX mags is not going to cut it), three products in the same line (GPX Sport, club and Adventure, no new innovative designs or even a new version of the GPX and i can go on.
I have studied this company and the market which i did not know before but loved the idea, so try to buy all the mags and search all the sites to see what they are up to and i just dont see much at all that is going to take them up to the same level as Astars right now.
Another point i will have a hard time believing is nowhere in the Audited financials did i see the number of braces sold. SO for a $18M sales figure how many units was that? I see in a post below that they said 100,000 sales of GPX braces, is that total to date or just for 2008 cause they never clarify that either. My personal opinion is that it is total to date based on the figures from the audit and would estimate a lower sales in 2008 than 2007.
You will need to go to:
http://dockets.justia.com/docket/court-cacdce/case_no-2:2007cv02742/case_id-387651/
You need to create an account and then you will be able to download the documents. If you look a the list you will see the descriptions for each document. It will set you back about $5 to get the documents.
Alpinestars case was dismissed and not withdrawn as Leatt put it. Was curious this week so checked it out.
If you check the public records which can be downloaded via the net you will see that Alpinestars showed that the patent Leatt was using as the basis for infringement was in fact not valid and so caused the case to be dismissed.
So not sure why Leatt put out the press release they did unless it was to cover up their lack of a strong patent to would be other manufactures.
Also, what happened to the 2008 financials being released in mid Jan or did that go out the window to. Am i missing something or did someone say this company was public.
That pinnacle digest thing is also a joke, the first guy that posted there also had nothing good to say. The least they could do is pay a whole bunch of people to post some good things.
Problem i see here is when one day the stock starts actually trading i can bet that a good wack of shareholders will dump there shares and bail from this one.
If you look at post #337 you will see that the company CEO has a suspect past so i am not supprised it is being run the way it is. I agree the letter to the shareholders is a load of complete BS and that it does nothing to put the shareholders in a better standing.
I am just angry with my self for getting into this stock for the good idea the product is and did not do my usual google search as a basic start on Dr Leatt first.
From what has gone on with this company, changing Auditors and IR/PR companies like theres no tomorrow i am supprised the SEC has not taken action and alerted the shareholders, but perhaps they are still doing some snooping around.
In 2007 Dr Leatt drew $980,000+++ for his royalty or whatever it is and all us shareholders are left hanging.
Please tell me what you think!
I was reading over the audit from last year and something struck me for the first time. In the audit it says there is a company called Leatt Holdings controlled by Dr Leatt the founder that ownes the patents and rights to the leatt brace.
My question is thus the following as it would appear from this statement, that people who have bought stock in leatt corp have only abought into a distribution system because if leatt corp pays for the patents and development yet does not own the patents then what have we invested in?
Another thing, further down the audit it says that leatt holdings gets a 5% royalty of nett sales so what this means then surely is holdigns gets a royalty independant of the profit ie even if leatt corp makes zero profit leatt holdings still gets a royalty, now thats an interesting case, wish i was part of that scheme!
Please explain how you know it is going to go private and what that means for someone like me with stock and when this is likely to happen?
I thought the whole point of going public in the first place was to make the stock liquid and draw it to the attention of the people who would go out and promote it to a point where the volumes and value was where it should be for a company this successful.
What do you see happening in the next few months with regards the stock situation?
By the way my comment earlier about them spending on litigation was not related to the waste of money but the fact that a company like leatt should be constantly evolving their product so that it makes it harder for other companies to make direct copies ie they have had the same brace with the same color with the same style since 2007. They have not even changed the color, so where is the innovation and r+d money being spent then, as no new products are coming out that i have seen and i dont consider the adventure brace NEW.
A direct copy of the leatt by pro tork!
AS i was saying i hope they are not blowing all the millions on litigation.
And yes this is a direct copy if not out the back door of one of the leatt china factories.
http://www.mxracing.com.br/novo_mostra_noticia.php?id=3703&secao=183
Although i agree with your percentage breakdown i still argue the fact that most penny stocks do not turn a dime for years and here is a company turning millions yet is stuck in a boat with other worthless pennies.
Logic is just not on their side right now and i cannot see how all the litigation they are currently in is helping them grow at all. At this early stage it is all about focus and i do not see focus in the right areas. Litigation is not going to build a company so we might see those millions get burnt on litigation is my guess!
Another thing, what was with them taking a year from their first announcement of the adventure product to then finally launching it, can they not do efficient R+D and get things done. One revised product a year will not keep them on the up and up let alone ahead of the competitors. Seems like a knee jerk reaction to the EVS announcment at the same time. So what makes them the industry leader as their website states, just the fact they did it first in motorcycles? At this rate that statement will not be valid for much longer!
Believe me i hope my concerns are not going to see the light of day but i have been watching this play out ever since i decided to buy the stock a while ago so i have valid reasons to be concerned.
There will be buyers at that level for any stock not just leatt.
Having said that i doubt the volume even at that level we be worth it, it needs to be in the 100K plus volume regardless of the price to support any type of trading.
2000 @ 6 cents like today is pocket change.
Penny stocks generally make no profit at all for years so with leatt making millions in their first year why is the stock so low along with volumes, and please dont give me the SEC suspension deal.
I am just getting bad vibes here, what are we not being told?
Do you have stock in leatt and how long are you going to hold out before you try sell, thats if you can sell?
What is this?
http://chdtcorp.com/Management/BoardofDirectors/tabid/67/Default.aspx
mr guzy is featured on this site and seems he is outsourced to leatt, interesting!
Have you seen a leatt car brace on the leatt site, it does not look like the one in the rpm video of leatt that guest was using, so what is going on there?
Also dr leatt says in the rpm interview that it is not attached to the helmet, yet the leatt website now says the car brace has an attachment to the helmet strap, what is going on, are there two different products here or am i missign something?
Also did a search to see where you can buy the leatt car brace and cant fidn it for sale anywhere, i thought they launched it this year at the PRI or are there production problems because of the adventure brace?
As i said the leatt vid is old, at least 2 years but i say 3, so not a big deal at all.
Not sure why you say that todays press release is good, it is not, just more money spent for nothing.
Have you tried to trade your stock? I have and no takers. If you believe what you say about debt free, brand blah blah etc etc then why is the stock in such a mess?
Although i think the product is very good i am not getting good feelings.
Also have you seen, leatt launched the adventure cheap brace for $195 and now they already bump up to $225. A good way to pee off the cutomers. Many forums have commented negatively on this.
What is your feeling on Leatt right now, does it look positive to you? Another thing how do you know that the IP has been valued at millions, please post for all to see so i can sleep better!
Just watched the HANS video, and that is not a NEW idea at all, it has been around for about 2 years.
Just looked at the HANS website and they say they have a patent pending on the NEW idea, wonder if leatt has one on theirs if you say it has been around for a year!
From the way the stock is going leatt is going to be long gone before it gets to sue anybody even HANS device. If you do not have a friend in the stock holders who are your friends?
By the way from other boards i have seen a suit for leatt will cost at least $2M and they have already done it once with Astars and then withdrawn, what a waste!
That is about 3 years old the rpm video, not new at all. He has put in zero effort since then, cant find anything with him doing PR work liek that since then really.
IR company has changed again, no wonder there has been no reply.
Was Clemensen or somehting a week ago so tried to call yesterday but even they were not in the know.
From corp site looks like IR is new guys Richter but no press release like last time to announce it.
Lots of the old swticharoo going on with Leatt, IR companies, Auditors, Audits etc etc but still no answers and shareholders are the last to hear.
Hopefully sales are still on the up and up, next audit will tell thats if current auditors dont run for it.
dont get me wrong, i think the Leatt is the best product MX has ever seen and thats why i bought stock but when will the stock show the volumes to trade with, dividends might be nice to!
maybe this is why shareholders are getting no information
http://196.33.159.102/2002%20VOL%2092%20Jan-Dec/Articles/07%20July/1.4%20HEALTH%20&%20FINANCE.pdf
http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=ct200205031030592B323469
no reply from IR company either so did some googling on Leatt.
no answer from IR company when this was questioned as no reference in fillings by Leatt.
http://196.33.159.102/2002%20VOL%2092%20Jan-Dec/Articles/07%20July/1.4%20HEALTH%20&%20FINANCE.pdf
http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=ct200205031030592B323469