Here you go guys....
I got this about a week ago but hadn't had a chance to post it yet.
Dear Mr. Goldberg;
Let me begin by saying that I am a frequent traveler and have been hoping for a product like the Magshoe for several years now. The cumbersome and unsanitary conditions of the shoe removal area are always a place of strong resentment when traveling.
That said, when I heard of IDO and the product that you are developing, I did a great deal of research into both the product itself, the available market and also into IDO Security. I have been a share holder since early May of this year because I felt there was indeed a market for the Magshoe and have watched the numerous pr's come out and raise the share price. My questions for your today (and yes I have seen all of the CEO live videos) are mainly in regards to the vague information that we have been provided up to this point.
You mentioned working hard to open new markets. What exactly is being done to try to get your foot into the door of these markets? It would seem that there has been a very strong turn of events as far as moving away from the airport security market (at least the TSA)and into prisons, government buildings, etc. There has always been a lot of discussion by IDO about getting TSA approval (which was insinuated at the time was pending) and now the whole market has swung into another direction completely. The part that I don't understand is that the TSA only governs a select few airports worldwide. Are there any sales coming in from other airports around the world that have already approved the Magshoe, like Australia, Europe and Great Britain? All of these countries already have the Magshoe in place, but I'm not seeing any sales for additional units. Are these units actually results of sales or units that are being used under pilot programs?
I have noticed that Seteco is marketing the shoe scanning device under a different name than the Magshoe. Do you have any sales coming in from that negotiation?
Finally, I haven't heard any word recently on the World Cup negotiations. The last that we have heard, which was in April 2009 is that you were in "late stage negotiations". Where do you stand on this endeavor?
The reason for my email is that the share price is taking a huge hit because none of these questions are been answered and the pr's that are coming out are 100% speculation. The vagueness of the answers are becoming a very real concern and there is a lot more talk now about reverse splits, diluting the price down to nothing, and multiple other unflattering rumors about where IDO is headed. I realize that you are searching for capital with the upcoming indentures coming due, but what is being done to generate sales to help alleviate some of this dept?
Please don't respond to this email with "for security reasons, we are not able to answer these questions at this time, but watch for forth coming pr's and filings" There is a lot of questions that can be answered that would clarify a lot of things about the current state of IDO.
I really do appreciate your time and greatly look forward to your response.
*****************
Dear...
I must say that your email is very intelligent and touches many core issues that we are working diligently to accomplish.
However, some things that you ask or say, we see in an entirely different light.
First, let me state, we are operating under the precise marketing plan, we developed almost two years ago. The few changes made to it, have to do with customer and/or potetial customer design requests as well as the evolution of the security marketplace.
The small number of gates located in airports around the world against the total number of gates that represent the total market has always been known to us. However, when you are introducing a new and never before existent technology, we chose to start in the market with the most visibility to all. This was further bolstered by, the Israeli governments early request for a shoe scanner in their International airport ( Ben Gurion). It was that singular placement of 14 units that gave this product the visibilty, credibility and footing that it needed.
Another issue that we face in these markets is a long sale cycle. Our customers ,to date, have been mostly governmental and that takes time as well as then getting a budget slot. This process is ongoing and we have recent clients (sales) where the actual pilot took place some time ago. As we move into commercial markets in the future, that time will diminsh.
As to the TSA and airports, we never intimated that we were close or in testing. Some bloggers may have but we have never supported that idea. Quite the contrary. We found out last year that the TSA was going to require explosive detection technology as part of a shoe scanner despite the fact that such a technolgy does/did not exist. We have been looking for a partner that was close to having it for two years and a few weeks ago, after a continuing thorough world wide search, we did our deal with Emisens to attempt to jointly develop such a product. While not many airports require this, we believe that Great Britain will also require same. Further, some countries have now given notice that RFP'S for shoe scanners will be forthcoming( without explosive detection technology). Unfortunately, we were far ahead of this market and are only now being viewed seriously for our value !
We have built what we feel is an excellent distribution network and where we have gotten no sales we are and will replace these distributors after an appropriate time. That distribution network is tasked with bringing in new markets. To this end, we have developed concrete improvements to our product and you have seen these in our press releases. These are no small feats and have been done at the request of potential clients by an amazing team of dedicated scientists and engineers within a very small budget.
We have never called a pilot a sale, so all sales have been real sales and paid for upon delivery of the units. Our pilots have been announced as such and are not sales.
As for the worldcup, we have not heard back and with the date rapidly approaching, you can assume the negative and be pleasantly surprised if it goes the other way. We did not ,however, lose out to any other shoe scanner.
As we are beginning to break into additional markets and as our product evolves to meet potential client requests, our biggest concern remains access to capital markets. We are trying hard in the toughest financial market in years to access the capital that we need.
I do not know why the share price of any stock, especially ours goes up or down but I suspect in our case the worry is ability to access these fragile capital markets. In this, IDO is far from alone.
There are unfortunately, some issues that the SEC financial disclosure rules and regulations prohibit me from answering at this time. Notwithstanding, it is never our intent to be vague or misleading. We want our shareholders to be informed. I ask humbly, that you pay attention only to what the company publishes and dismiss blogs, or comments made in any other format.
I hope this response brings some clarity to your questions. I will again state, that you should watch closely for our upcoming PR'S which I believe is the proper place to say what is being done to break new markets and bolster sales.
Suffice it to state, we are not sitting idle !!!
Sincerely,
M Goldberg
AI
Market Data 
Markets 
