SPOOZ Inc (SPZI)

[Gbathat]

Also interesting to consider this in light of Jame Groves and Peng He being let go from Spooz. Paul specifically mentioned their matching engine expertise.

I think there are two, maybe three, ways to look at their departure. (Yes, this is a balanced board!)

1. The project fell through


2. The matching engine aspect of the software was completed

A third way might be to assume that Peng He and Jame's duties were passed on to someone else (a partner, etc).


What can/should we consider when thinking about these issues?

1. When were these guys hired?

2. Is it possible that the virtual exchange idea surfaced well before Paul even sent that email and that Peng and Groves were brought on board for this matching engine development?

3. How much were they paid? Not sure if we have access to this info, but perhaps we can estimate it from changes in the company operating expenses over the last year. If they were paid huge money, I'd say it is more likely they came in for a "special, short term job". This could make sense in the context that they were not "key Spooz employees" at the time of their dismissal. At the same time, if the project fell through, that would also render them "non-key employees".

4. Can Paul's responses to email questions about their dismissal and current operations give us any clues?

Let's consider some of his recent correspondences...
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3. Is the issue "Fractalz" now obsolete because Dr.Peng He left the company?

Dr. Peng has absolutely nothing to do with Fractalz3
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6. Can you give us a rough estimate on how much the burn rate is for the company right now per quarter?

Less than $500,000. The successful sale of the SWARM license to 141 Capital could mean that Spooz will achieve a profitable Q4 2007.
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1. Has there been, is there, and/or will there be any negative impact on the ownership status of any and/or all of the products in the above schedule because of either of these two referenced matters or both of them?

There will be no negative impact with the result of the departure of Dr. Peng and Jame’ Groves. I can not comment further on this matter at this time, however, more information will be forthcoming soon.
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2. Will the products listed in the above schedule be released on schedule or will either of these matters or both of them cause Spooz to change the release schedule in any way?

No. Dr. Peng and Jame’ Groves were managed in such a way as that they would not affect these matters in any way.
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Given this disclosure, please address the following:
1. Were either of these individuals employed long enough to have had their considerable options positions vested?

No options granted to Dr. Peng or Jame’ Groves ever vested. They are forfeit.
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1. Were the two departures related to each other or were each of them unrelated?

They were independent of one another.

2. Whether related or not, did the departures occur on the same date?

No, they were approximately one month apart.
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I'd like to know if this news which he thought would have a "monumental" impact on the PPS has been released. Was it something from the expo (ie. 100 million over 4 years, uplisting?) If not, WHEN does he expect to release this news (prior to 08)? I sent him an e-mail prior to the expo and he said soon, however, considering the expo and current PPS I'd like some clarification. I think SPZI is still primed to do well however at the end of the day I think shareholders have a legit concern when the PPS drops so significantly.

Due to recent events being reviewed by our counsel, I can not comment at this time.
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5. Is there a pending programming with using SPOOZTOOLZ for creating an exchange to trade other commodities (the "ebay for the rich" idea)?

An answer to this question would provide sensitive and highly proprietary strategic information to the market. I can not provide any information regarding this question at this time.
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Just to throw a little discussion out here about Jame Groves and Dr. Peng He.

Big Daddy reports that Daryl told him they were not "Key Employees"???I think Daryl is spinning that one just a little.

This is an errant assumption.
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Jame Groves was awarded 25 million stock options on May 1, 2007; Dr. Peng He was awarded 20 mil. stock options on May 18, 2007....in both instances millions more than any other employee. Paul Strickland spoke in absolutely glowing terms about the work of Groves and Dr. Peng He in tweaking SWARM during June and the demo trading during July. The On-line Demo. Someone asked "Whose voice is that on the demo? Someone voiced the opinion that "only 4 people understand SWARM well enough to describe it, Jame Groves, Dr. Peng He, Paul and Daryl.I would like to ask several questions about the dismissal of these 2 Non-Key ???? Employees from Spooz, only a couple months about from public availability of SWARM.
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1. How does their dismissal effect the development of the other software products ie Fractal-Toolz, and others?

Not in the least.
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2. How many millions of options were they allowed to keep?

Zero, the options have been cancelled.
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3. Did they have to sign a "Non-disclosure of trade secrets agreement" or any other NDA of propriatary knowledge as a term of their employment by Spooz.

Both Dr. Peng and Jame’ Groves entered into, what we believe, very tight Non-Disclosure/ Non- Compete Agreements.
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Frankly, the dismissal of Groves and Dr. Peng He IS a big deal IMO.

In a positive or negative way? My point is that you lack the information important to draw such a conclusion or form this opinion.

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Before this morning, I never really read any of these Q/A in the context of the potential virtual exchange. I think Paul's responses certainly maintain a high level of mystery regarding this issue, and that it is potentially still on the table... any thoughts?