**MY VISIT **
Morning,
juts got up .. have a friend coming visit for a week so it will be a little slow posting pictures and stuff since it's now not a priority for me after the visit. There is no worry whatsoever.
An information that most investors don't know is that F3 has a team of 5 programmers working on programming (codes) in Romania. Frank is here to complete the user-end interface. This explain a lot.
As for as the reasons we saw share increased in early this year was that those convertibles were wanting to convert as they saw price moving up. Frank said when he bought the shell, it came with $180K in debt and this was the reason why those shares were added.
As all of you are aware that at the end of 2nd qtr, there was a portion of Convertible Notes due in less than one year of $57,500 left. Recently, about a month, our O/S has increased to 63,535,704 shares. That is 1,502,589 shares increased. But our Convertible Notes due in less than one year is reduced from $57,500 to around $6K (not know the exact number since I didn't drill on the detail as $6K's is good enough number for me to know). So $51K or so got reduced in exchange to those 1.5 million shares. That was around .034 a share. $6K left is probably around 200K to 250K shares left to be added when debt holder decide to convert.
If the debt holders decided to convert at around .034, I am sure that soon PPS will move up just on that merit alone.
I am looking forward to more updates from the company in Nov on. Every 2 weeks seem to be the schedules of software releases as stated during the webcast.
There had been so much discussed during the meeting. They are very professional not showing certain things regarding to software but few snap shots .. just in case I am working for a competitors I guess. They do trying to keep the niche market elements as low key as possible.
FargoTube is said to be the biggest money making potential for the company as this market segment growth at 50% a year. Ascend has 5 componets and the first one was the uploader which has generated interests more than what they expected. They said that the uploader was a bonus putting it on the Ascend as competitors don't have it included in there.
2 more of the 5 componets are done and testing. They have the beta version not long ago. The other two will be wrap up shortly ... as Frank put it: We stick to our schedule we gave during the webcast.
I asked about the financial statement. That will comning out around mid Nov.
I asked about the company's web site. That will be worked on shortly.
I asked if the company will dilute to raise funds again soon after the money they have running out. They indicate that they don't see any need for it. Then I asked again about cash burn rate of $10K a month, they said yes. I then stated that the financial statement the second qrt, it seems they will be runing out of cash by December and will need to raise funds. Are they still expecting to be cash flow positive and profitable by the year end as said in one of the PR.
They said they believe so and plan on it as they are able to money to cover cash burn rate. They keep remind me how lucky of a position they are as far as cost goes. They mentioned to me at least 4 times. One can look at the financial statement and see for oneself.
In any case one can look at the Revenue for the first 3 months. It was $15K. So if they start making more money the 3rd qtr... by the end of the year they could be making money to cover the cash burn rate. Then the marketing effort they have been doing in the late third and fourth qtr will start paying off. They have a convention to go to in Jan, the biggest one for HOA's. Also in Nov, Payment Group will go to one convention and introduce ICS.
I asked about anyone signed up with Payment Group yet. Frank said there were some modifications and programming that had to be worked on and it's all finished. Now they will go out and market it.
I asked about the NY connection. They said one HOA signed on and this one is to be the flagship for this property management company to go out and market it based on this HOA.
As for the trip/vacation thing on the PR, they said it would be a good idea to do it as it basically cost them nothing. It was a suggestion from an investor to do it. They realized that it didn't have that good of the impact on investors/stock price. They laughed about it.
In any case, they are focusing a bit of effort on churches because it's a perfect funds rasing tools for churches. They have one signed on, 400 members. They are working with many others to sign on. They said many sale leads of HOA's come from the church members.
Ok, I think that will get you guys to start looking more into F3. Call them, email them ... they are available. Best yet, visit them if you can.
I will be posting pictures soon after John downloaded it to computer, modify some and send to me. :)
