Left Behind Games (fka LFBG)

[greedy__malone]

Well Villa first of all one of the new products is Left Behind 3. A 3rd installment of a game that has never provided a profit and never produced any significant revenues.

Then you have the out of control expenses LFBG is running. For the last fiscal year they generated $111,000 in revenues but lost well over $7 million. What kind of business survives with that kind of gap between what they spend and what they bring in?

So, you have poor products that Troy refuses to get away from and expenses that keep going up as revenues go down.

The only way to bridge the gap is by diluting the common shareholders out of existence.

Some here would suggest you see what October-December brings with these new products but if you read the 10-K you will see how Troy ramped up the sales force and intorduced new products during the last fiscal year. The result of the added costs, new products and ramped up sales force resulted in net revenues for the year declining by 43%.

That is pretty pathetic. He has to get away from money draining games, focus his time and energy in the regional area where LFBG is headquartered, move to the highest margin products he has and focus on the most recognizeable brand going for him.

The main thing here is that this company operates as is if it some kind of national powerhouse but brings in crappy revenues. A single popcorn stand brings in more than Troy's business. For crying out loud, my local paperboy knows how to operate his business at a profit. He didn't go out and buy a new Escalade and hire 12 people to deliver papers, creating expenses of $1 million while selling $50,000 worht of newspapers.

This is not rocket science. He has had over 5 years to fine tune this and create a lean, mean company that is at least in the ballpark when comparing revenues to expenses.