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I'm not a fan of any reverse split but the only thing that makes sense if they actually do it is a 100-1 or better yet 1000-1 reverse split.
Again, there is no evidence of the company "touting" anything since Howard left MDHI.
Not one Pump and Dump since Howard left.
Yes, there has been a growing AS and OS but as previously explained, that is not the same thing as pumping and dumping.
1. the stock was $2.50 for one day of the IPO over 4 years ago. This number is irrelevant to anything. MDHI has been trading sub penny for 3 full years.
2. Nobody is selling for profit at the current levels. NOBODY. Anyone selling at these levels is just not willing to wait and see how things turn out.
3. There has not been a single paid PR from MDHI since Howard left the company. In fact, MDHI rarely issues any PR's without an accompanying SEC filing. The general consensus around here is that MDHI needs to put out many more PR's in between the SEC filings just to keep the MDHI symbol in front of investors.
Not one of those things has been done by MDHI.
If they had some proof could be provided.
Without proof, just saying the laws had been broken is a false accusation.
Did you cancel almost 500k or almost 900k? Last year was it 300k or 250K?
I'm not sure what your point is.
Louislasvegas said to me "appalled the company has screwed over all shareholders" and I'm agreeing with him.
It would be difficult to argue otherwise at this point in time.
Maybe in the long run clearing up almost a million in debt will be good and the cancellation of debt almost certainly will be but MDHI will need to bump the AS up to nearly 2 billion to cover the conversion of the debt as explained in the 8-k.
And a reverse split is never a good thing.
Read the contract.
Not sure what you're point is. Of course revenue is revenue. I was trying to answer this:
"I don't know how much we are selling the unit for to these out lets but we should be getting a percentage of the sale of the unit on what ever our price to supply them are. jmo"
That is why I initially asked which retailers you were asking about because what dollar amount of revenue MDHI receives and how they receive it depends on which re-seller it is sold through/to.
MDHI keeps the majority of if not all of the recurring revenue for the monitoring service on all domestic sales (about $30 per unit per month) and keeps whatever revenue is generated by selling the units to the Irish re-seller on a per unit basis at the time of the sale without any recurring revenue.
So, domestically MDHI's model is based on selling the service--in some cases with an upfront expenditure by the end user that appears as a "unit perchase price" but is really a prepayment for the service and in Ireland it is based solely on unit sales to the re-seller.
That should address the initial post about the arrangements with all the other current re-sellers.
From what I understand, the Irish company buys the units outright and does the monitoring themselves with no recurring revenue to MDHI.
MDHI has made it very clear that domestically they are in the business of selling their monitoring services and the Medipendant itself is free. The only way there is an up-front fee for the unit itself is if the purchase price includes the monitoring service for some period of time. Costco sales are structured this way. When a medipendant is purchased through Costco there is an upfront fee that includes shipping and 6 month's monitoring service from MDHI. Costco gets their money from the initial fee, MDHI gets the balance for the included monitoring then and MDHI keeps all the revenue from extending the monitoring service. If the unit fails for the initial user at any time--even if it is 10 years later--MDHI replaces the unit for free.
Any upfront charges from security system alarm companies that offer the medipendant as their medical alarm are for installation and set up. They may get a % of the recurring revenue or they may just want to be able to offer full coverage to their customers. I would guess that the full advertised mdhi monitoring fee is paid to the alarm company and then MDHI's discounted fee for a volume re-seller is forwarded to MDHI.
which outlets are you referring to?
Just a typo--the rest of the info is correct. Drop ship orders from Costco started on June 28, 2012 so no recurring revenue from costco sales began until Jan of 2013 and the recurring revenue @ $30 per unit per month from the monitoring of 2000 units in domestic sales is $60k/month.
That is if 1/2 the units sold in the june qtr of 2012 were sold in the US.
Everything comes down to the filings proving the statements that were made regarding the cash flow to be accurate.
If costco carried the product and only 100 have been sold that is very different from 10,000 being sold. Without the knowledge of what Costco brought to MDHI, nobody can make an informed decision about Costco's impact on MDHI's revenue of bottom line.
Therefore the fact that MDHI is selling through Costco is insufficient info to drive the PPS in and of itself.
This is a fact.
That does not say MDHI sold 4000 units through Costco in the June qtr. It says MDHI sold 4000 units in the june qtr. THey have many other outlests to sell the units. If only half of those are domestic sales, MDHI is currently generating $60k per month in recurring revenue from the unit sales in in the last qtr of fiscal 2011.
MDHI started receiving the drop shipping orders on June 28, 2012--it is in one of the SEC filings that I am too lazy to review right now but I believe was the audited 2011 filing or the unaudited calendar 2012 filing.
Coscto website indicates appriximatly 3-5 business days for deliver. That means the earliest anyone would have a medipendant in hand was July 3rd 2012 and the 6 month's included monitoring would not expire until January of 2013. Therefore there was ZERO recurring revenue from the Costco sales in any of the financials we have seen.
They were restricted. They were not sold. MFTH just reported the cash value of the 10 mil SAFC shares on the day they received them as revenue thereby showing $1.8 mil in 4th qtr revenue.
For the record, I own some SAFC as well now. I should have stuck with my initial gut feeling that this was just a two company scam that makes it more difficult to regulate.
That is a PR from newswire. It states it right in the title and to be sure I skimmed all SEC filings from MFTH leading up to the contract that was simultaneously filed by SAFC--there is no mention of the impending contract in Sept 20012, Oct, 20012 or early Nov, 2012.
In additions, that PR irrelevant what actually occurred and was issued in advance of the actual contract signing so it is completely protected by safe harbor. And, like most PR's from penny stocks it is nothing but BS. It was part of one of MFTH's pump and dumps.
It is not my opinion. Here is the exact language of the original contract:
"
Section 2.2 The Parties acknowledge and agree that the aggregate consideration payable for the License is US$7,000,000 (the "License Consideration"). In the event that the value of the Shares, based upon the average of the closing bid and ask price of the Shares on the OTCQB during the thirty (30) trading days prior to the 1st anniversary of this License Agreement, shall be less than the Valuation Price, and shall remain below the Valuation Price for ten (10) additional trading days, the Parties agree: (i) to renegotiate the terms of this License Agreement and the grant of License hereunder; and/or (ii) Licensee shall issue additional restricted Shares so that the Shares initially issued pursuant to this License Agreement, together with the additional Shares issued following the 1st anniversary of this License Agreement, shall equal the License Consideration."
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8927494-5465-22767&type=sect&TabIndex=2&companyid=855318&ppu=%252fdefault.aspx%253fcik%253d1508470
I don't believe they sold the shares. They just reported the cash value of the 10 mil shares on the day they received them as revenue.
So it is agreed that none of us know what the actual benefit of MDHI being in Costco is known but just being in Costco has an effect on the current PPS?
The only affect Costco selling the medipendant has ever had on the PPS was within the first couple of days after it was announced. After that it will require knowledge of the benefits of the Costco relationship to drive the PPS.
I 100% agree that not knowing how much Costco has helped is not a good thing. However, it can't be both ways that being in Costco alone should carry the PPS and that the PPS is dropping because MDHI has not informed us of the actual revenue benefits of the Costco relationship.
The problem is the latter. And the lower PPS is directly related to the lack of specific information about how the company is currently doing. Knowing that a growing positive cash flow has been achieved due to a sworn statement in an SEC filing is also not sufficient to support a higher PPS without the actual details.
It all comes back to the fact the we, the MDHI investors, need to see the current financial at least through the end of fiscal 2013—preferably audited numbers. However, even unaudited numbers that are filed with the SEC under penalty of perjury would help.
That't right. Spongetech's products were in Costco and Wallmart. Costco for about 6 months wallmart for about 2 months.
SPNG pumped the stock dauly with erroneous Pr's and signed contracts to advertise in during on the rotating screens at televised MLB games and on in NFL stadiums that appeared on network tTV as well. They later got sued because after getting the exposure they never paid on the contracts.
They used all this pumping to run the stock up to nearly .30/share and then sold nearly 3 billion shares that did not exist into the open market--essentially short selling their own stock to the tune of nearly $500 mil and never covered the short sale--they had an attorney wrrite an opinion letter that the shares were legit as a part of the scam.
The presence in Costco is the only similarity between SPNG and MDHI.
It is not the 10 mil shares that are the problem. SAFC owes another $5.2 mil on that contract due within 10 days of the 1 yr anniversary of the contract. This additional money is to be paid out in shares equal to that value if other arrangements are not made.
How much recurring revenue did MDHI get from the Costco sales of MediPendants in the second half of fiscal 2013?
We know the recurring revenue before then was $0.00.
It's not "WITH costco". No financials that include any of the recurring revenue from Costco sales have been released yet. Until those numbers are filed with the SEC we won't know if the recurring revenue is 3k/month, 30k/month, or 300k/month.
It is great that Costco is selling the product but until the revenue from those sales is divulged--specifically the recurring revenue that is growing every month now that the initial 6 months of coverage included in the Costco unit sales have expired as of the start of fiscal 2013 3rd qtr --having Costco sell the product won't produce a significant long term increase in the PPS because NOBODY knows what "WITH costco" has actually done for MDHI's bottom line.
That's not possible. Nobody wants to buy this stock---or so I've been told.
I don't need to check with anyone. It is in the SEC filings I quoted in my original post about the float. I previously thought the float was higher--close to 400 mil shares but there never was a chance that the float was any higher than that as the management team controlled the voting rights of over 400 mil shares as necessary to increase the AS and OS without having a proxy vote. The shares sold privately are still owned privately and the owners have given management voting rights.
Privately owned shares are not part of the float. It doesn't matter if they are restricted or not. The float in only the shares that are freely traded publicly.
The OS was over 700 mil. Not the float.
They are not the same thing.
For shares to be dumped they have to hit the open market.Increasing the AS or OS does not constitute shares being dumped. Privately held shares that are sold into the float are shares that are dumped.
All the recent filings have allowed us to estimated the float.
From the latest 10-Q the current OS is 1,364,719,304 shares
Here are the recently issued restricted share we are aware of shares that we are aware of:
3-6-13 550,674,510 (I will ignore the other nearly 40 mil they said might be sold)
Since 3-11-13 when the OS was 777,625,563 as verified by the TA. 1,364,719,304-777,625,563=587,093,741 restricted shares issued.
Minimum total current restricted shares is 587,093,741+550,674,510=1,137,768,251.
So the maximum float is current OS less the minimum number of shares not being freely traded in the open market. That number is 1,364,719,304-1,137,768,251=226,951,053
Clearly the vast majority of shares that were privately sold are still privately held. While it is possible the shares are still being held because they are still restricted, there has not been any significant dumping of MDHI's shares by anyone.
MDHI received its first Costco drop ship order on June 28, 2012. The medipendant purchase through Costco includes shipping and 6 month's of monitoring that does not begin until the end user receives the unit. Therefore, even if they sold and shipped thousands of units between 6-28-12 and 6-31-12 there was very limited recurring revenue for Costco sales at any time during calendar 2012--and whatever they did get only came in during the last days of December of 2012. However, the revenue from the actual sales of the units that Costco sells began to show up as early as the end of fiscal 2012 which ended on June 31, 2012 and definitely by the beginning of Fiscal 2013 which began on July 1, 2012.
The quarter ending 9-30-12 included all the revenue for the units sold by Costco during that time but no recurring revenue. The quarter ending 12-31-12 included all the revenue for the units sold by Costco during that time but little to no recurring revenue.
The statement that revenue from Costco didn't begin to show until the quarter ending 12-31-12 is factually incorrect. The statement that Costco's recurring revenue began to show at any significant level in the quarter ending 12-31-12 is factually incorrect. The statement that Costco's recurring revenue was maximized in the quarter ending 12-31-12 is factually incorrect.
Finally, even adjusting to a 32 month average contract (I'd like to see verification of this number from a reliable source) without any growth from the repeated add campaigns and positive reviews of the medipendant, monthly revenue form Costco alone will be $88,000.00.
At 32 months, approximately 2600 units sold at Costco will have reached the point of paying the $30.00 per month monitoring fee which equals $78,000.00 in recurring revenue + $10,000 during that month for the new units sold by Costco.
To reiterate, that is $88k in monthly revenue from Costco sales alone and does not account for any increase in sales from Costco due to the aggressive marketing or positive reviews.
The Calendar 2012 numbers don't show anything like what you say they do. Nothing can be extrapolated from the future just from them. First of all, none of the recurring revenue from Costco has begun to show yet. Second the assumption that unit sales of a product that is repeatedly pushed by Costco in multiple ways and is so well reviewed by the customers sells at the same pace today or did even 6 months into the agreement as it did right when it first showed up on the web site is faulty at best. Third, the important comparison is not the first 2 quarters of fiscal 2013 to each other but how much better is MDHI performing compared to before it was being sold by Costco.
Therefore the important thing to note is that the quarter ending 9-30-12 had revenue of $95,426 up from $38,115 over the same time period in 2011 an the Quarter ending 12-31-2012 had revenue of $102,280 up from $79,546. That is an increase of $80,045 vs the same 6 six month period from 2011 to 2012. Since we also know that revenue form the quarter ending 3-31-12 was $45,624 it is clear that Costco sales that began just before the end of fiscal 2012 is the primary force driving the additional sales.
The average additional monthly revenue from the first have of fiscal 2013 compared to the first half of 2011 is up $80,045. Averaged over 6 months that comes to $13,341 additional revenue per month over the previous year. Even though we know this is primarily from Costco sales we will estimate conservatively that only 75% of that revenue comes from Costco or approximately $10,000 in monthly revenue comes from Costco. That is about 100 units sold per month at $100 per unit from Costco.
Each month through the end of 2012, MDHI collects $10000 from 100 new sales without even getting any recurring revenue. At the start of January 2013, the recurring revenue begins. That month MDHI gets the initial $30 monitoring fee for the first 100 units sold by Costco units and the same 10 grand from the new Costco sales. Next month there is revenue from the monitoring fee on 200 units plus the revenue from the new 100 units sold. The next month recurring revenue from monthly monitoring fees is received for 300 units and so on.
This number from recurring revenue keeps growing. 18 months into the Costco relation ship, 18000 units have been sold and 12000 of those units are paying recurring revenue. MDHI's approximate revenue from Costco in the 18th month, have expanded to $46,000 and are still growing. At 24 months, MDHI is receiving $6400.00 per month from the Costco agreement alone. These figures do no even take into account the other distribution sources.
At 36 months, MDHI's revolving monthly revenue will be $100,000.00. Again, this assumes zero product growth despite all the support Costco provides and and the nearly perfect reviews
Here are the facts. They are indisputable.
Yestdc introduced motorbooster in Jan of 2011.
http://www.nbcnews.com/id/41317812/
Howard was the CEO when MDHI got involved with yestdc.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7851742-1604-9384&type=sect&TabIndex=2&companyid=786864&ppu=%252fdefault.aspx%253fcik%253d1443089
Motorbooster study released shortly after.
http://globenewswire.com/news-release/2011/07/19/451542/226826/en/YesDTC-Releases-Full-MotorBooster-TM-Dynamometer-Study-and-Sets-Retail-Pricing.html
SEC filing from 4-8-11. Howard was the CEO when MDHI got involved with the company that produced motorbooster.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7851742-1604-9384&type=sect&TabIndex=2&companyid=786864&ppu=%252fdefault.aspx%253fcik%253d1443089
Nothing at the link you posted or aboutus.org. Searched for as aboutus.org for motorbooster.com and it started to create a brand new page about it.
As for the bogus test results, are you saying that the test results were known to be bogus as soon as they were presented? That is simply not possible and therefore factually incorrect. It wasn't until Ronnie had MDHI try to duplicate the results long after Howard got MDHI in bed with YESDTC that anyone became aware that the initial results were bogus.
Howard Teicher was the cause of all MDHI's problems as CEO and Ronnie is just turniong the company around now after all the problems he caused including being the architect behind MDHI's only true Pump and dump about 3 1/2 years ago.
It's funny that when Howard was the CEO, the CEO wasn't running the company and has no blame for the bad decisions he made during his tenure. Yet now that Ronnie is the CEO, everything MDHI has ever done does is his decision and his fault even from before he was CEO.
Blaming Ronnie for the things that happened under Howard's tenure as CEO is like blaming Ronald McDonald when you get a bad hamburger.
First, Motorbooster was not a known fraud in advance of the investment made by MDHI. The fact that the claimed test results were bogus came out several months after the deal was made. Litigation would probably have been more expensive than walking away considering decent legal representation in the this area runs $350 an hour with top lawyers charging $500 or more an hour.
Second, we don't know the terms of the deal that "released" those units to the reseller. Is it an upfront payment? Does MDHI only receive the monitoring fees once the unit is sold? Does the end user's purchase include 6 months of service like the Costco customers get? If the purchase includes monitoring, how often does the reseller make payments to MDHI? Monthly? Weekly? Daily?Quarterly?
The only thing we can even guess at is if there is an upfront payment. The answer is probably not. Other than the current overseas sales, MDHI does not normally sell the medipendants themselves. Other than the Costco arrangement which includes 6 months of monitoring, MDHI sells the monitoring service and provides the equipment for free.
As the SEC filings continue we will begin to see the impact of these units reaching the end user. Only once we receive that information will the PPS be affected.
I don't think this is about Costco.
It states "one of the largest distributors in the security and life safety industries"
They refer to Costco as something like the largest (or one of the largest?) club membership retailers. Costco is also drop shipment agreement so there would be no delivery of actual units to Costco.
The MediPendant is also sold by many home security companies as their medical monitoring service. This is not to say MDHI is carried by either of these national giants but I'm referring to companies that offer home alarm systems like ADT. Most of these companies also offer a medical alarm system as part of their overall home protection but almost all of them do not provide that system themselves.
A large home security company could make bulk purchases of the medipendant to install on their schedule. The biggest difference between these companies is customer service so that having the units on hand for rapid installation would make sense.
This doesn't look particularly diluted to me.
Good news from the latest filing is we can now approximate MDHI's float.
From the latest 10-Q the current OS is 1,364,719,304 shares
Here are the recently issued restricted share we are aware of shares that we are aware of:
3-6-13 550,674,510 (I will ignore the other nearly 40 mil they said might be sold)
Since 3-11-13 when the OS was 777,625,563 as verified by the TA. 1,364,719,304-777,625,563=587,093,741 restricted shares issued.
Minimum total current restricted shares is 587,093,741+550,674,510=1,137,768,251.
So the maximum float is current OS less the minimum number of shares not being freely traded in the open market. That number is 1,364,719,304-1,137,768,251=226,951,053
The current information flow is from SEC filings that are happening every 2 weeks right now. MDHI has been averaging 1.7 filings a month so far during the entirely of 2013
The only phone call that is being discussed is mine from almost 2 months ago. As previously stated, some of the information from 2 months ago is still accurate as it is not time sensitive but most of it is old news that is no longer relevant. Also as previously stated, anyone who was not part of the conversation 2 months ago and therefore rightly questions the information I relayed 2 months age should feel free to verify any information I shared 2 months ago by calling MDHI themselves.
I don't know why that phone call from 2 months ago got brought back up. I am not the one that did so.
To put that 2 month time frame in perspective, that was 3 SEC filings from MDHI ago.
I am not an MDHI apologist. I look at what MDHI has to offer moving forward.
Other than the information I relayed from one phone call which I have clearly stated has satisfied me but that anyone who is unsure of what I shared should follow up themselves, I post facts from SEC filings and my belief that the only reliable source of information about MDHI should be the SEC filings MDHI provides.
Every so often I post conjecture but when I do I never express it as fact. If something I say is conjecture about MDHI, I say so up front.
I never edit the facts from the SEC filings I quote to change the intended meaning of the statements. I never alter information contained in something I quote from another poster.
I do not view MDHI based on mistakes made 2 and three years ago as if they just happened. I look at what MDHI has to offer today.
Today I see a company with a bright future based on growing recurring revenue and growing positive cash flow.
PR's are not necessary when there have been 8 sec filings by MDHI since the last PR. Especially when nobody knows who actually released the PR and the info in PR's are often inaccurate and unverifiable.
And yes, information from April is not current when new information has been released 8 times since then.
I cannot fathom why anyone would be hung up on PR's, a way of releasing information that is the most common method penny stocks use to deceive investors.