NeoMedia Technologies, Inc (NEOM)

[brewskih]

Beam11..that was not my argument at the time. I said they would appear on the financials and you said they wouldnt. But thats beside the point.

The real issue is what you stated then and continue to state. You say in those May posts, just before the financials were released, that the new financing was better then the old equity financing. You have also stated that there was no interest in the new financing. At the time of those posts, the new financing that you claim was arranged in 2005 to buy the subs, was not in fact arranged in 2005. It was the sale of the preferred series C stock in 2006, which paid for those subs.

I think somehow you got the 2005 SEDA and the preferred crossed, or how could you state the new financing would lower interest expenses? Exactly the opposite is the case, the preferred financing has increased NEOMs interest expense at a rate of 8 percent on the 27 million dollars. You also made reference to them being debt free, in those posts. The 27 million dollars in series C is a debt until or if the series C are ever converted. Thats why if NEOM defaults on that agreement they have to repay Cornell the entire 27 million and the interest accrued. The SEDA however is different. There is no interest on the SEDA, when and if the shares get registered. NEOM sells them shares at a set formula, and in return NEOM raises cash to operate with, unlike the series C that NEOM has to pay interest on. Here is what you said in May, and the dividedend were in fact on the financial statement when it was released, as was the interest, both you claimed would not appear on the financials period. Where are you getting this I said they would be an operating expense? Please provide the post as I have done for you showing what you said. I said they would be on the financials, and are a part of the stockholders equity.

"""""""When the 3/31/2006, Q-1 is presented, perhaps you can show us in the financial statements all the dividends which we have paid to Cornell for the Convertable Preferred Stock, used as security, for funds advanced or issued in purchasing all the subsidiaries."""""""""""