CEO, Rory Cutaia, answers questions on InvestorsHub with shareholders.
Thursday, January 12, 2017
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Q: Was the bBooth's estimated revenue guidance for 2017 on an earned basis?
A: It is based on an accrual basis in accordance with GAAP principles.
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Q: Can we expect news on a semi regular basis, i.e. once a month, quarter etc?
A: As many of you know, I don’t subscribe to the philosophy adopted by many OTC companies of putting out news to announce what they had for lunch. Now of course, I’m being facetious, but I believe if a company wants to be taken seriously, and truly does have something of value, press releases should be used to announce real and material news.
That being said, I do believe that we can do a much better job of communicating with our investors and the investment community at large and I commit to do so now in 2017. This open forum is one such way I intend to communicate and I will do this every month or more often as necessary. I will also explore other out of the box initiatives, utilizing our own technology to communicate more often.
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Q: I noticed a few articles indicating bBooth could be a "target" takeover candidate in this category. Just curious how the company could/would be valued pre-revenue?
A: We all know what the traditional valuation methodologies are for valuing a business; i.e., discounted cash-flow analysis based upon projected future earnings, comparable sales, or a combination thereof. I don’t believe those methodologies will apply to bBooth because those methods are typically employed by the investment community analyzing an investment, or an acquisition by a strictly financial buyer; i.e., a private equity firm, looking to leverage our predictable future cash flows. I believe our highest and best value will be paid by a strategic buyer who will value the company NOT based on what our own cash flow is expected to be in the future, but rather on how they will incorporate and deploy our technology into their own platforms and the corresponding additional value they will create thereby. Given the nature of our technology and the litany of potential large scale buyers out there that could benefit from our technology, and the prices paid by these potential buyers in recent transactions, I’m extremely excited to be sitting where we are right now. That being said, no one should interpret my response to mean that we are actively pursuing such a sale.
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Q: Hey Rory, my question for you is about the recent volume we have been seeing. I do not believe any of us long term holders are selling shares, let alone 100,000 daily. Is the company currently diluting? Usually days of high volume raise a stock price but it seems all of the high volume is coming in at or below the bid. Any info on this would be helpful!
A: Obviously, I don’t really know with certainty who is selling or why, but what I believe we are seeing is NOT people who are selling because they perceive some risk of loss ahead or some downturn in the prospects of the company. I am unaware of anything that could give anyone that impression. What I believe we are seeing is profit taking. And as a big believer in profits, I’m fine with that. Fortunately for us, not everyone can see the forest through the trees. Everyone is not going to see the value creation potential that we do – and again – that’s a good thing for therein lies the opportunity for those that do. Over time, as more information becomes available, it becomes easier for people to see the potential and then we’ll see fewer and fewer sellers. Those of you who see it earlier are the lucky ones.
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Q: Having First Mover status is far more valuable than any additional/cool features that are being added. Those features take time and resources to develop - time that your larger competitors can take advantage of by 'catching up' to your first mover status. It doesn't matter if your tech is 'crude' compared to where it may be down the road. What matters far more is capturing your market - even if it is just one silo - before others do.
You aren't a First Mover until you First Move: One client leads to another - success brings success, and you potentially learn so much more from actual clients than from think tank in- house creativity, about how to enhance your first mover status and stay ahead of the pack. The success from First Mover status can become your greatest resource.
A: What you’ve done an excellent job of outlining here are the principles set forth in ERIC RIES superb business book – THE LEAN STARTUP. One of Eric’s premises into the market into the hands of users as quickly as possible. This drives another of his main principles which is the Build-Measure-Learn Loop. By adopting this principle, which we have, management is able to measure the feedback from real users of the product (as opposed to management’s own preconceptions) when making decisions about which changes, modifications, new features, etc. should be added or subtracted, thereby cutting down the time it takes to get a product into the market that better meets the needs of its intended users. This is precisely what we’ve done over the past year and this perhaps answers questions many of you have had about why we have yet to announce meaningful revenues or earnings. Because we followed what I believe are proven sound principles of product development, I believe we are now much better positioned to actually realize the revenue and earnings targets we have set for ourselves this year. , to which you and I subscribe, is to create what he refers to as a Minimum Viable Product and get it out
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Q:Can you comment on the International Monetary on what they have done and are going to do.
A: We there is an enormous opportunity to reach out to broker/dealer networks with existing retail clients, and have our company introduced to those clients by the Bfs they already know and trust. IM is working diligently in this regard and I'm optimistic about the future results of that work.
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Q: Can you comment on the Matrix role out success?
A: Last month, we shot an extensive series ion walk-out style videos for Matrix leadership, many of whom were gathered at a conf in Arizona several weeks ago. Those videos have now been edited and are being incorporated into the individual leadership apps for use and adoption by their teams. There may be a bigger opportunity here as a result of this initial work, which I am unable to comment further on at this time.
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Q: When are Q4 financials going to be released?
A: I don't know the exact date yet although I can assure you they will be filed timely. They will not contain any surprises as we didn't anticipate meaningful revenue in 2016.
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Q: With all the big names involved and connections they have one would think the share price would be higher.... Comment?
A: Big names and connections alone don't drive true value. Execution and performance does. You should look forward to that from us this year.
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Q: Could you provide an update on our relationship with Sapper Consulting? Do we expect revenues to be generated from this relationship in the first or second quarter of 2017?
A: Sapper has proven to be a fantastic partner for us. Yes we do expect revenue in both the First and more in the Second Q of this year.
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Q: Could you provide an update on our relationship with The Matrix Group? Did the launch happen as expected on November 7th?
A: See prior posted response
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Q: Are the previously communicated revenue projections for 2017-2019 still plausible? Can we expect significant revenues for Q1 2017?
A: We stand by them.
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Q: Does management expect any additional financing to be needed this year to cover research and development and operating expenses?
A: Yes and we're looking at a 506 c financing structure under the new SEC rules. We will advise everyone about it when formulated.
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Q: Can you elaborate on the technology, its capabilities and present/future compatibility with iPhone and other mobile devices?
A: So much to say here. Allow me to address this question in more detail at the end of this session as there upcoming releases are jaw dropping and I don't want to give it short treatment here.
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Q: Can you elaborate on the company’s revenue model?
A: 2 base products; each with its own revenue model. Our "Application and API" product is a subscription based licensing model for monthly recurring revs. Our "Embedded Link" product is also a licensing model but based on a fixed price for unlimited use during a defined period of time.
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Q: Has the Investor Relations firm International Monetary begun to put its plan in motion?
A: Yes - see prior post
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Q: Can you be a First-Mover with your next generation messaging product NOW - that is - are people willing to pay for what you can offer NOW?
A: Yes Ted. Exciting news coming on that soon. Wish I could say more.
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Q: My question is in regards to the two Board Of Advisors, Dan and Branden. Are these two active with the company and what is there role exactly?
A: They are 2 of the most intelligent people I know and have been enormously helpful and active both as advisors and sources of business opportunities.
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Q: Do you still feel confident of achieving $50 million in revenues for 2017? If not, what would be a CONSERVATIVE "lay down" revenue number?
A: Yes Confidence remains high.
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Q: Are there any efforts to bring in institutional investors to buy our stock. Although retail is important I believe institutional investors who see the value of the bNotifi technology will be able to propel us forward way beyond the current pps. While I understand the company took on many private placements. The effort to propel our stock will come from open market BUYING.
A: International Monetary has been instrumental in helping us prepare for and cultivate an institutional investor base. I expect to see those efforts come to fruition as and when we begin announcing revenues and earnings.
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Q: Has the company noticed any issues with the speed of the bNotifi app. It seems the like the download speed is way too slow and choppy(at least on my wifi connection). Have others reported such issues?
A: We are testing and deploying new technology THIS WEEK to address those issues. Please let me know next week if you see the improvements.
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Q: Are there any efforts to bring in institutional investors to buy our stock. Although retail is important I believe institutional investors who see the value of the bNotifi technology will be able to propel us forward way beyond the current pps.
While I understand the company took on many private placements. The effort to propel our stock will come from open market BUYING.
A: International Monetary has been instrumental in helping us prepare for and cultivate an institutional investor base. I expect to see those efforts come to fruition as and when we begin announcing revenues and earnings.
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Q: Has the company noticed any issues with the speed of the bNotifi app. It seems the like the download speed is way too slow and choppy(at least on my wifi connection). Have others reported such issues?
A: We are testing and deploying new technology THIS WEEK to address those issues. Please let me know next week if you see the improvements.
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Q: Will I as an individual be able to sign up for a monthly subscription and do my own "walk outs"?
A: This is one of those things that I cant comment on yet. But I am so excited to share with all of you what's coming. I appreciate your continued patience.
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Q: Which markets are currently at the top of your list of priorities? Which clients or groups are we targeting first and foremost?
A: for our application based product, which is an enterprise level platform, we're targeting large enterprise seeking a proprietary internal media rich communications platform that also includes interactive training capabilities.
For our embedded link product, which is our unique ability to share a link via online ads, social media, email, text, etc, whether it is a visible link or button, or an invisible link embedded in an image or video, that when clicked (or automatically), launches a media rich fully interactive video experience - our target customers are ad agencies, consumer brands, social media and entertainment celebs, online retailers, among others.
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Q: How can bNotifi Version 2.0 be improved? Are there any established timelines related to these improvements?
A: Super exciting announcements coming soon.
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Q: Has the Transfer Agent been told to not provide updates on the share structure? Can we give him permission to provide the numbers? Or can we update the OTC Markets website’s company profile on a monthly basis?
A: The TA has it's own policies concerning the provision of such information, despite our requests - repeated - that they provide our shareholders and other interested parties such information as and when requested. They claim to not have sufficient resources internally to provide that info for all of their customers. We will endeavor to update that info on the OTC Markets site on a more regular basis.
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Q: Does management expect to move to the OTCQX marketplace this year?
A: We are actively exploring with counsel, our advisors and others, future opportunities on other exchanges.
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Q: Are any of the other celebrities featured in demos (on the website) related to bBooth in any way?
A: I'm unclear what you mean by "related". We do have a number of celebrities that have a vested interest in our success.
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Q: How much time do Nick Cannon and Frank Thomas currently commit to the company? Do you see their level of involvement increasing in the next year?
A: I believe that given where the state of our technology and products are now, we very well may expect to see more "in front of the scenes" activity from them.
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Q: Is the company currently hiring? For what positions?
A: - Yes. Coders, sales, marketing, admin support.
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Q: Is the SING promotion over, and if so, was it all you intended it to be?
A: Our primary objective was to forge a relationship with NBCUniversal. I believe we succeeded in that regard.
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Q: It leads me to this question: Can you say anything re speed/momentum or rollout in the Entertainment sector? Do you envision an unleashing of enormous exposure all at once from NC's efforts, or more of a steady rollout over time? His national TV exposure seems to allow for a big splash, but I wouldn't know..
A: I'm unable to provide much more information at this time in this regard but I can tell you that it has and continues to be a privilege to work with Nick Cannon as he is so much more than the entertainer public persona many of you know him as and my expectations for his involvement with us remains as high as ever.
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Q: Without patents, are you confident that your technology won't be duplicated by another entity? That is an area that gives me pause.
A: Our technology is based on code - which is protected by copyright. Patents, as you know, require a disclosure, available to the public at large, of our proprietary trade secret info. Accordingly, we have opted away from that disclosure for obvious reasons. We are exploring other means at ensuring our trade secrets and proprietary IP is protected, but given the fact that it is based on millions of lines of code, developed over many years, we feel our IP is secure.
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Q: Thanks. You mentioned that the recent sellers may have been profit takers. I don't quite understand that as most of the stock has been purchased above .08. Perhaps those that have private placements at .06 are the ones selling but surprises me if that's the case. Are there any other convertibles that might be selling(other than Oceanside)?
A: There are no convertibles held by outsiders. No insiders have sold any shares to my knowledge.
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Q: Also what was the reason the pps fell from 3.00 back in October 2015 to .10?
A: It actually fell to 2 cents as I recall. I am unable to comment on the actions of one particular holder and his agenda back in October 2015. However, I can state that it was not based upon a failing or perceived failing on our part.
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Q: How long is the process from when a company shows interest in the app until when an app can be created for them to use with their customers. Is that the reason for the seemingly delay in actual contracts?
A: Our latest version allows us to create:
a dedicated database,
a web-based landing page for distribution of the application to employees, followers, customers, etc. mobile apps for IOS and android
desktop apps for windows and mac
a web-based app
a Content Management system
and an Admin control panel
ALL FULLY BRANDED AND CUSTOMIZED ON A WHITE LABEL BASIS FOR A CUSTOMER AUTOMATICALLY IN LESS THAN 6 MINUTES. YES YOU READ THAT RIGHT - ALL OF THAT IN LESS THAN 6 MINUTES.
More to come on this later.
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Q: Can you compare or contrast our company with Keek, a Canadian based company with a video app, currently gaining a lot of attention(I think they have 70 mil users)?
A: I am actually under an NDA concerning KEEK and unable to provide much commentary concerning their app or alleged 70 Million users. No transaction between our companies is currently contemplated. However, I can state with certainty that WE ARE IN A LEAGUE OF OUR OWN!
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