First, the 10-K filed today is the Edgarized version. The cutoff to get it filed was 5:30 PM EST, so they pushed to get it filed. There will be a few changes to the XBRL, which should be out Monday.
As far as the company, LCLP was an R&D company until July when the first deliveries of cameras and Mobeego products were received. This quarter, they have been working to win the HP deal, which came through. They had some indications they would win it before they actually did, so I think they focused their efforts on HP, rather than selling the Life Clips cameras on their own. The HP deal doesn't allow the sale of any Life Clips branded cameras.
As far as Mobeego, the initial research indicated the packaging could be much better. Consumers didn't know what the product did, since there was no clear message. As a result, the packaging has been redesigned to show the product in a clear plastic window, which is the way the major manufacturers do it. Once again, the initial research indicates the new packaging is worth the delay. I'm pretty sure they're going to be pushing hard to sell the Mobeego products moving forward.
One other thing is the cap structure. Life Clips filed an S-1 to raise money. As long as there is sufficient capital to work the business plan, I would think they would retire some of the convertible debt, but that's just my opinion from talking to management. It's unfortunate, but there aren't a lot of brokers out there raising money for OTC companies. I know a lot of people have been wondering about the HP deal. It was a material event, so they had to do an 8-K. A company the size of HP isn't going to allow a release using their name in conjunction with a smaller company without approval. I've talked with Bob and he understands shareholders need information.
Thanks for your confidence.
David L. Kugelman
(404) 281-8556
AI
