NeoMedia Technologies, Inc (NEOM)

[JPetroInc]

A 7.5% stake in Sponge worth $6Mil. would make Sponge worth $80Mil. There is alot to be analyzed here regarding the future performance of Sponge and the association of an $80Mil. market value. Additionally, it would seem that this "exit" agreement was a very involved process. There could have been grave legal consequences to both parties in the event they could not come to amicable terms concerning the $0.39 strike price ($10Mil. outstanding) coupled with Sponge's inability to attain pre-determined earnings targets over the next 2 years, which would have required an additional $4.35Mil. from NeoMedia under an earn-out if Sponge in fact meet the specified sales revenue criteria established, all per the original purchase agreement. Next up for consideration are our agreements with 12Snap, Gavitec and MoBot. We get the strike price ironed out with these acquisitions, continue to reduce our head count and burn rate, sell AutoX, and we'll be on the road to break even and cash flow positive results.