GD, I wish I could share your expectation that someone is going to try to buy IVDN. However, I still believe that IVDN is still essentially a worthless company. I don't expect to see any buyers any time soon.
For all of 2018, IVDN sold ~$250k worth of product. For $250k in sales, the company has a net loss of $582k.
Ouch. Hopefully, most of their expense has been legal fees, but I don't see that broken out in the company's 10K. (Although I admit I'm just skimming it at the moment.) If the company's cost of sales are going to be 3x revenue going forward, well, we can all see where that leads.
IVDN is not a threat to any company out there, anywhere. Nobody needs to buy IVDN to keep them at bay. All anyone has to do in order to avoid being threatened by IVDN is to allow IVDN to continue to lose money.
I don't see any motivation there for a competitor to buy out the company. IVDN is not a viable competitor to anyone anywhere.
I think everyone here can agree on this basic tenet of capitalism: a company that doesn't make a profit has no value. The only way for IVDN to have any value at all is to make a profit.
The only way for IVDN to make a profit is to get customers and make sales. If INSULTEX is as great as they say it is, they should be selling this stuff by the bushel. But IVDN isn't doing that. That, to me, suggests two possibilities:
1. InsulTex is not what they say it is, or
2. IVDN can't sell worth a damn
Now, I grant that the lawsuit probably consumed a great deal of the resources of a company as small as IVDN. Nevertheless, sales are the lifeblood of any company, and IVDN isn't doing that. "Inventory" is still the largest item on the company's balance sheet. IVDN has over $700k of product that THEY HAVEN'T SOLD. And that number has changed very little year-over-year from 2017.
IVDN ISN'T SELLING ANYTHING.
That's the bottom line for me and is why I think that IVDN will continue to be worthless for the forseeable future. If Riccelli can't sell this wonder-product, then we as shareholders need to get the board to kick his butt to the curb and get a leader into the company that can monetize this supposedly unique and valuable product.
Selling their means of producing the product probably isn't conducive to a long term sales strategy. (In the 2018 amended 10K, the company says they intend to sell the only machine they own that can produce INSULTEX. See 2018 10K Item 1, "DESCRIPTION OF BUSINESS.")
Now that the FTC suit is over, I as a shareholder want to see sales growth in the double, if not triple, digits quarter-over-quarter. Whether or not current management can do that is a big question.
If IVDN cannot do that, I don't expect to see any company buy them out. I expect IVDN will eventually cease operations if they can't generate sales, and the patents that some folks here think are so valuable will be sold at fire-sale prices at liquidation, and we shareholders won't get any of that money.
I sincerely hope the board of directors for IVDN is reading this post. Now that the FTC suit is over, "show us the money!"
