Let's look at previous 10K filings. IVDN was incorporated in 2002. The first 10-K I see on the SEC's website is from 2009 filed for the 2008 fiscal year, so maybe that's when they went public.
In any case...
In the 2008 report, we see that IVDN lost half a million dollars from operations. (The only reason they showed a profit that year was from an arbitration award, so from operations they actually suffered a $552k loss.)
In the 2009 report, we see that IVDN had a net income of a whopping $22k. At least in this year, revenue exceeded cost of sales. That's a big plus.
In the 2010 report, IVDN doubled their net income to $48k.
That is: this entire company made less money than most of us earned in our paychecks that year.
In 2011, IVDN had a net income of $15,066.
In 2012, IVDN had a net loss of $454,000.
In 2013, IVDN had a net loss of $142,761.
In 2014, IVDN had a net loss of $434,070.
In 2015, IVDN had a net loss of $511,600.
In 2016, IVDN had a net loss of $633,055.
The FTC filed suit against IVDN on Nov. 4,2016.
I don't know why y'all have confidence in the CEO of a company who, over a nine year period, had only 3 years with profits (barely) and 6 years of generally increasing (and massive) losses, BEFORE the FTC suit was filed.
If INSULTEX is such a great product, why hasn't IVDN been able to sell it at a profit? Remember folks: all of this is from BEFORE the lawsuit.
Webverse, your claim that "they had good traction for sales before these corrupt FTC geniuses tried to squash them" isn't reflected in the company's SEC filings at all. In fact, their filings show exactly the opposite: from the outset, IVDN has been losing money hand over fist.
Even if we remove net earnings (profit) and look just at sales (revenue), the picture isn't very encouraging:
2007: $674,541
2008: $543,137
2009: $837,224
2010: $1,108,955
2011: $1,039,149
2012: $812,761
2013: $484,299
2014: $771,184
2015: $772,900
2016: $602,062
2017: $367,955
2018: $249,682
Why couldn't IVDN increase sales from 2014-2016? This doesn't look like a company with a revolutionary product.
At the end of FY 2018, there were 27.7M shares outstanding. At the end of FY2008, there were 18.5M shares outstanding. This company is surviving by diluting our shares. Why are y'all so supportive of this company's management?
*If* IVDN gets bought out (and again, I don't think that's likely), I certainly don't think it's going to be by the likes of DuPont. DuPont already has a successful house wrap product in Tyvek. Why would they buy INSULTEX, a product that will do nothing but cannibalize sales of their market-leading product? Especially if, as is likely, INSULTEX is more expensive to manufacture than Tyvek, which would mean that it almost certainly has a lower profit margin. It would make no sense at all for DuPont to buy IVDN under those conditions.
Given the cost pressures of homebuilding, I also don't see a huge market demand for INSULTEX as a house wrap. Unless INSULTEX can allow a homebuilder to meet building requirements cheaper than current products and processes, I expect INSULTEX demand to be limited to custom and other upscale homes. (Have you seen how quickly and slipshod builders are putting up homes? They want to get in, get it built, get it sold, and get out as soon as they can and as cheaply as they can. I don't see INSULTEX helping homebuilders meet those goals.) For the vast majority of home sales, I don't think a "house wrap with an R value" is going to be a factor in the buying decision. If home buyers don't care about a "house wrap with an R value," then naturally home builders won't, either.
If IVDN is bought out, I expect it would be by a company that manufactures building products but is looking for entry into the house wrap market, but not by a DuPont. Either that, or by a cold-weather clothing manufacturer. I think that's a far more likely scenario than being bought by a DuPont. Maybe someone else will find a profitable use for a product with INSULTEX's properties in another market entirely and will try to buy the company. Maybe there are applications in, say, heat shielding in the automotive or other mechanical industries.
However, I still think the most likely scenario is that the larger market will continue to not care about IVDN at all unless and until they can generate sales and, by extension, profitability.
As an investor, again, I want to see massive sales to justify my continued investment in this company. Now that the FTC suit is (effectively) over, IVDN had better get on the ball.
