Here's the reason for the flip and flop back in November.
I think the problem that occurred back then was that INMG was being hyped so much that expectations for revenues were upwards of a million or more annualy. That was predicated on the wording that Tom used that was misunderstood. He mentioned a 4 million dollar bump in the stockholders' equity as a result of the merger with GBGM. Some took that to mean a huge increase in revenue, into the millions per year, and combined that with the fact that Tom had gotten rid of all convertible debt to create a PR monster.
The fact is that Tom had indicated a revenue generation to start off 2015 at approximately $200,000 per year from the $2.5 million in unamortized media assets. So, although the company had as a result of the merger $2.8 million in stockholder equity, the Q3 10-Q showed only $48,933 in revenue and after operating expenses, that number was reduce to an abysmal $14,718 in income.
Even so, that was much better than the previous quarter's loss of ($26,048), but not enough to sustain the climb to .0006.
The following is taken from one of his latest interviews:
He said that the $200k cash flow was really an estimate primarily for 2015 only. He expected that the web series being developed in early 2016 would have a direct effect on that as well as the pps.
Another source of income would come into play as a result of the VOD Search Engine that is being developed by Innovativ Media. There are millions of web based entertainment channels and it's a real challenge to find the content you want today on the internet. This VOD Search Engine would be like an online TV Guide for all that web media that would allow you to filter only the shows or genre that you want. Google gets a considerable portion of their income from advertisers on their search engine so can you imagine the potential for income from this source for INMG?
He also said that the Global Gaming assets that were broght on board are being managed by another company but the fantasy sports equity and partnership can be viewed at Amped Fantasy Sports (www.ampedfantasy.net/).
As far as the equity necessary to finance his future revenue producing projects, Tom has said that he's holding those 9.9B shares of Authorized for that purpose. However, and this is important, any issuance to capital investors to finance any new projects with stock would be limited to restricted shares that could not be converted for at least one year. So that would allow the common share structure at 2.6B Issued & Outstanding, and 1.5B Float to remain without dillution. And that would continue on through 2016. His estimate of a .05 pps was based on all of this gelling in the 2nd quarter.
He also said that he would consider reducing the A/S once the stock pps increased. He didn't say how much, and this is now my own opinion, but if he saw it was on a roll, he obviously would consider buying it back in stages to keep the share price sustainable. He has also selected Uptick Newswire (upticknewswire.com) as his pr release site.
I hope this gives everyone a semblance of an idea of what's going on and what to expect this year from INMG. Take a look at the last 10-Q issued in November, 2015 for Q3-2015 and you can see just the beginning, the tip of the iceberg to greater potential.
