NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

Thanks banks. To another point ....

.... NEOM's fully diluted share count and the fact that it outrageously exceeds the 5 billion Authorized Shares allowed.

(note: I'm not an expert on Authorized Share counts and what the relevance might or not be regarding a Fully Diluted shares count used in calculating such items in a 10-Q as "Net Income (loss) per share, Fully Diluted" which is nearly double the A/S count.)

In the most recent 10-Q NEOM calculated the fully diluted share count as being 9,617,290,165 , as of 3/31/08 , when the PPS closed at .008.

We thought that sounded high when compared to the 5B Authorized.

Is it 'legal' to be in that situation? Should we be more concerned with the 'legal' aspects accruing to various components of NEOM's financial situation than in whether or not they might risk the SEC's ire by telling us shareholders something? Anything?

Just for fun, at yesterday's closing PPS of .0025 what might that Fully Diluted number be?

If we take out the ~1 Billion outstanding and assume the rest of those 8.6 Billion "maybe"-shares are somehow all tied to the share price and increase in number as the PPS declines ....

.... we might come close to an answer with the formula ( 9,617,290,165 * .008 ) = ( X * .0025 ) where solving for X tells us that at a PPS of .0025/sh our Fully Diluted share count could be approx. 30,775,328,528 shares.

Nearly 31 Billion.

That happens fast.

Again , I'm no expert on the ramifications of such items.

Since Yorkville ( + anyone else who might still have some shares/warrants with price-sensitive conversion features ) obviously can't convert their holdings into that quantity of shares , that number could just be an irrelevant 'placeholder' which is only used in certain esoteric calculations required to satisfy the SEC.

Anybody know if it's important?

jonesie