iftp/new ceo message...January 12, 2001
Dear Shareholders,
We continue to get very good questions from you and are very pleased at the results from our continuing series of questions and answers. Our goal is to keep our shareholders informed and to communicate what our company is trying to achieve.
Sincerely,
Daniel Hoyng
Chairman & CEO
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Q: Why have insiders including yourself sold? You emphatically stated no insiders have sold. On 11/2/00 Dan Hoyng held 2,886,200 shares and on 1/11/00 - 1,804,000 shares. This leads me to believe you have been selling and not buying, and we feel like you have blatantly lied to us. Please explain.
A: All the officers and myself believe in IFTP and own a great deal of stock in IFTP. In the year 2000, all of the officers including myself took a great deal of our salary in stock, we even used our own money for expenses and later converted those expenses owed into stock. This allowed the Company to keep the cash and utilize it for items to grow the Company for the long term. The federal government and state government does not take stock for payment of taxes, even when restricted stock is issued we are required to pay taxes (over 40% of the value of any stock we received is lost to taxation). This is why registering stock is very important. The officers did not take excessive cash salaries, rather was compensated in stock as we believe in the Company. In the past thirty days I have bought 285,000 shares in the market and purchased 1,200,000 shares from the Company in the exercise of options, thus investing over $95,000. A look at my salary and previous stock sold will clearly show that not only do I believe in the Company, other than paying taxes, I am investing 100% of my disposable income back into Infotopia Inc.
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Q: The Company has been advertised very actively on Internet sites, especially sites devoted to the OTCBB. Has the Company considered advertisements in publications with a broader audience, something like Barron's, the weekly publication of the Wall Street Journal? They have a "Current Corporate Reports" section that might be appropriate.
A: Currently we are looking into various media outlets for further exposure of our Company. Once these advertisements are placed we will alert our shareholders of there location.
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Q: Dan Hoyng was recently mentioned in a filing from Dynamic I-T (DYNM). Can you tell us about this connection?
A: The only connection is that DYMN uses the same attorneys that we use here at Infotopia. It appears they used a copy of a document similar to IFTP's and didn't pull out my name (Dan Hoyng). Clearly an oversight on the attorney's part which will by corrected in DYMN amended filing.
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Q: What is the current share structure?
A: Currently share structure is:
auth: 190m common, 10m preferred
approx: 189m O/S
approx: 140m Float
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Q: Can you update us on the number of IFTP shareholders, and do you know the average number of shares held by each?
A: Currently we have at least 7,500 shareholders.
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Q: Will sales of the new products (Bun and Thigh Rocker, BodyRocker) go on the books upon shipment or will there be a 30-day delay for recording sales?
A: Product revenues are allowed to be booked once they are shipped. Currently Bun and Thigh Rocker is shipped within days of our customers placing the orders.
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Q: Can you update us on the status of the Natural Science Corporation products? Are they still planned for release this quarter?
A: An April release is now planned for these projects.
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Q: In a recent Q and A on a stock promoters website, you stated there would be a need for an additional 30m to 50m shares in the coming year. Please explain how you plan to do this and if that number is part of the latest SB2?
A: The Company will always look at new ways to grow so the right acquisition might be cause to issue shares. However, the Company has a variety of agreements that exist that contain options if every option was issue the Company would need to issue between 30 and 35 million shares. The Company does expect to buyback shares during the coming year. The shares purchased through the buyback program would be returned to treasury. This buyback of shares would offset any additional new shares that may be required in the coming year, depending upon the share price. It is the expectation that the total shares issued at the end of calendar year 2001 would be significantly less than currently outstanding.
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Q: How is the BodyRocker performing?
A: BodyRocker has performed well in testing. Currently we are adding to our media expenditure and should continue to see very positive results.
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Q: What is your media budget for all the products for January?
A: Our January media budget will actually be in excess of two million and we anticipate that February will be in excess of five million. The only variable is the ability for media buying Companies to purchase the quality and variety of media needed for each campaign.
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This information includes "forward-looking statements" that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the Company's ability to produce and market products and/or services and other risks detailed from time to time in their Company's reports filed with the Securities Exchange Commission.
