NeoMedia Technologies, Inc (NEOM)

[Poptech]

YJ: When you jumped the line from NeoMedia advocate to NeoMedia detractor, you isolated one component of the company as unjust to your happy return: the financing terms.

Financing is the symptom, not the illness.

NeoMedia made an enormous gamble that was well supported by you and probably most investors. They bet the entire industry would adopt their patented technology for handling indirect codes. Many believed it was the only such method despite the world's use of indirect barcodes for years before NeoMedia's founding. I have no doubt NeoMedia management may have been the source of this information byte.

NeoMedia built a business around a business model which had done poorly for over a decade and was still wildly trumpeted by shareholders. Sue your way to success. NeoMedia focused the core of their business on BP&G generating a top-line of patent licensing. So much so that they often didn't have a sales team. No one objected. It was all plan A, and we don't need a plan B. Plan A was the legal team would be the sales team. Bloody brilliant if you are a patent troll with a headquarter in East Texas.

Laura has moved away from these poor management decision. However, it will take some time before she can cure the illness of poor planning and no execution.

YA is simply the ointment needed when management ignores the core problems for years and years. NeoMedia had to have financing because they did a poor job of planning - fully supported by shareholders. They had to have PIPE financing because they waited way too long to fix the obvious problems which left no remaining financial options.

So showing up on a down day and declaring victory for your theme ignores NeoMedia's true history and the future.

If NeoMedia continues to show the same percent growth as they did in the last 10Q they can payoff YA before the 2012 default. YA won't matter. It is a big IF but I think there is no sense in belaboring a point that may be irrelevant in less than a year.

So, we get it, PIPE financing is not a great deal but right now it is the only deal. There is nothing to be done but fix the chronic illness that was NeoMedia's business plan.