SPOOZ Inc (SPZI)

[Wildman-j]

Notes from the shareholders meeting....

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The comments below are from notes taken during the meeting - both written & mental. All of my comments are my own and may not be the opinion of Spooz Executive Management. These comments should not be used as a basis to buy SPZI stock.
Also - Wing, Fedfundz, ITGuy - if I have misstated or misrepresented anything below, please don't hesitate to correct and/or clarify. Thanks.
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I believe there were around 12/13 shareholders @ the meeting and at least that many Spooz employees & board members.

Discussed during the evening
Election of Board of Directors
Discussion on pending litigation
2007 - 2008 Milestones
SpoozToolz v2.0
Year in Review
Financing
Global Exchange Connectivity & Broker Compatibility
SpoozToolz Related Products
Proprietary Trading (SWARM)
Advertising
Trader Education
Building Shareholder Value

Election of Officers
Errol, Paul & Darryl have been re-elected.

Discussion on pending litigation
Spooz filed suit against CMC due to them quoting one fixed-bid price for software development efforts and then over-inflating those prices during development. This suit is pending. The Ten-Four suit against Spooz is progressing and Spooz is in the process of defining the terms of a settlement. The suing party has been very agreeable to the terms thus far.

2007 - 2008 Milestones
Key focus areas for the remainder of this year & next are Financing, Profitability, Trader Education and Positioning the organization.
Financing - As mentioned in other posts there remains approximately $200k of dilution. At .002/share that represents 100M shares. Spooz management is aggressively pursuing financing in the form of series A convertible stock to the tune of $3M. Dilution would be discontinued as soon as this financing falls into place. I believe Paul said that Errol is meeting with individuals next week to discuss such financing.
Profitability - Management echoed what has been stated on this board for a long time - that revenues (Profitability) are key. We know it - they know it - and they key way they plan on achieving it is with a targeted phased roll-out of STv2 (more on that later).
Trader Education - Spooz knows that if they release a great product but don't teach anyone how to use it, then they're setting themselves up for tough climb. As was evidenced throughout the meeting - Spooz is being very deliberate in the planning & execution of the STv2.0 release in order to maximize the profitibility potential.
Positioning the Organization - Keys developments have come in to place of the last few weeks that will enable Spooz have acces to over 100 different brokers. Agreemnts with Trading Technologies will enable partnerships with these brokerages in a streamlined fashion. However - they key here is that Spooz won't have to approach these brokerage firms saying "can we please write to your API?" - rather - brokerage firms looking to increase trading activity @ their site will approach Spooz saying "We'd like to get more of our customers trading futures (or options, or E-mini's, or whatever), can you develop some custom trading templates and training video's that we can advertise on our website?". This is the essence of the deals with Ameritrade, Man Financial and optionsExpress.

SpoozToolz v2.0
The company has decided to have a phased roll-out of S[poozToolz 2.0. Make no mistake - a "phased roll-out" is not code for "we're not done with everything so we can only release a little"... the demo's we saw overwhelmingly prove that. No - a "phased roll-out" is a controlled roll-out; a manageable, deliberate approach to releasing STv2 on the trading public. Doing things in this manner will allow Spooz to respond to the release in a way that will best-support the new users. The worst thing that could happen is that they release every single piece of functionality of STv2 and then they can support the deluge of new users. I've been software development for nearly 25 years and been involved in every phase of the SDLC (software development life cycle). Releasing in phases is always easier that releasing all at once. I think this strategic decision is the right one. Phase 1 will focus on traders who trade Futures, Derivatives and Forex. The next phase will focus on Stocks & Equities. In addition to these phases, Spooz will release monthly templates that suport various systems & screens. Please note - these templates are done. Let me repeast - these templates are written... they work... we saw them. They key part that is still in the works is the development of the training documentation. If Spooz releases 300+ templates without adequate support & documentation, then folks won't know how to use them effectively, if at all.

Year in Review
Paul talked about the key employee additions that have been made over the past year and introduced them accordingly. He discussed the patents they've filed and said that there were more to follow. FYI - the patent approval process can take anywhere from 3 to 5 years. He talked about the Tetrahex acquisition, strategic partnerships (it's all been PR'd) and how they have remained as transparent as possible - and they they will continue to do so.

Financing
First - and these are my words - QUIT COMPLAINING ABOUT DILUTION. No - I don't like a low share price any more than you. But - until we get revenue's and additional preferred financing, the company must dilute. They need money - period. The officers in the company have taken sincere steps to keeping the business running - they've deferred their salaries, their office space is modest (but very functional), the meeting reception was hosted by them - in house - on a budget. So yes - they will continue to dilute to the tune of approximately $200k. Now - will they need more??? Maybe.. hopefully not (probably not) - but maybe. As I mentioned above they are seeking $3M in preferred financing.

Global Exchange Connectivity & Broker Compatibility
Upon release Spooz will have compatibiliy with 22 Global exchanges. Examples are CME, CBOT, NYMEX, LIFFE. The agreement with TT opens up compatibility woth over 100 brokers. This is a good thing... otherwise they would have had to write these interfaces from scracth.

SpoozToolz Related Products
We're all familiar with these - basic ST, additional modules, lots of templates, data feeds.

Proprietary Trading (SWARM)
SWARM was supposed to have started trading April 1... which I alqways thought was a joke seeing as (a) it was a Sunday and (b) it was April Fool's Day However - due to numerous hardware delays SWARM kick-off has been rescheduled to start next Monday, 5/21. As we suspected this is being done through 141 Futures. The current plan is to publish monthly results of SWARM activity. SWARM will utilize Fractalz and SpoozToolz and is the independent trading arm of Spooz. It operates independently of Spooz, but all profits still roll-up to Spooz. When Spooz acquired Hexaware the intention was to completely privatize Fractalz so that it wuold be used internally. This is what they have done with SWARM. Jame' Groves, Peng He and Erik Long have done a phenominal job pulling these technologies together. It should be exciting to see the trading results.

Advertising
Beginning in June look for Spooz advertising in the following (one or all???): Futures Magazine, Technical Analysis of Stocks & Commodities, SFO Magazine, Active Trader. Dennis gave an overview of the targeted marketing approach and showed off some of their advertising slicks. I thought they looked impressive.

Trader Education
This is a huge effort @ the company is is one of the driving factors for the phased roll-out.

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Overall, I continue to be impressed with the entire employee team Spooz has built. I believe the next few weeks will be pivotal to the success of the company. Ultimately - please do your own research before investing in this stock. It is indeed a risk... while the futre looks extremely promising no one knows what will happen!

Lastly - my notes do no include comments on the STv2 demo's... I'll try to get to more of that today.

Regards,
Wildman