GeckoSystems Intl. Corp. (GOSY)

[Toxic Avenger]

There’s been so much speculation on GOSY, I thought I’d put together a substantiated list of the DD, along with the links

Current employees (unverified, but not contradicted by any company information):
R. Martin Spencer, 63
Elaine G. Spencer, 63
Previous employee of Mark Peele seems to be gone, as do most or all of his 75 million shares.
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=55386

Per the most recent financial report:
Losses since inception ~ $8 million
Revenues since inception ~ $12 thousand
Current assets ~ $88 thousand
Current liabilities ~ $1.3 million (appear not to include approximatel $100k in lawsuit judgements and interest outstanding against the company)
O/S (6/30/11) ~ 466 million shares
CEO & wife ownership ~ 275 million shares
Shares issued to CEO & wife 7/1/09-6/30/11 ~ 334 million
Shares bought back from the CEO & wife by company 7/1/10 - 6/30/11 ~ 185 million
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=55386

Events from the company that have not borne fruit:
“The multi-location, Milwaukee-based nursing home company just bought 10 CareBots, Spencer said, to patrol its halls. The $120,000 influx of cash is the first major sale by GSI.”
http://web.archive.org/web/20041119092938/http://www.neighbornewspapers.com/articles/2004/08/06/338/2220.txt
As noted in subsequent filings, there appears to be no $120k sale.

The antecedent company, Gecko Systems of Georgia, Inc (GSGI) has been acquired in a reverse merger by International Shoe Manufacturing Corporation (ISMC). Each shareholder of GSGI has been authorized by a majority vote of ISMC's stockholders and Board of Directors to receive twenty-five (25) voting, common shares of one year restricted stock in the Company (formerly known as ISMC) for each share they presently hold in GSGI. http://findarticles.com/p/articles/mi_pwwi/is_200611/ai_n16840495/

According to other posts, Spencer closed the deal without ever getting the shares in ISMC he was supposed to. 3 months later …
GeckoSystems, Inc. (PINKSHEETS: GKSY) R. Martin Spencer, President/CEO/Chairman of GeckoSystems, Inc. (formerly International Shoe Manufacturing Corporation) today announced the resignation of the officers and directors of the company. Resigning as officers are: R. Martin Spencer, as President/CEO, George MacLeod, as Senior Vice President, and Neil Wallace, as Vice President. Messrs. Spencer and MacLeod and Ms. Elaine G. Spencer resigned as members of the Board of Directors of GeckoSystems, Inc.
The election and appointment of the foregoing officers and directors of GeckoSystems occurred in connection with an acquisition of a majority of the outstanding common stock of GeckoSystems in September 2006. The intent was to integrate the robotic operations of GeckoSystems of Georgia, Inc. with International Shoe Manufacturing Corporation, an entity trading on the Pinksheets. While working toward operations integration, management became aware of various misrepresentations made by parties to the stock acquisition agreement and have been unable to satisfactorily resolve many issues regarding this transaction. "Accordingly we will no longer be integrating the operations of GeckoSystems of Georgia with GeckoSystems," stated Mr. Spencer.
http://findarticles.com/p/articles/mi_pwwi/is_200702/ai_n17219157/

Then came the “Prodec” deal, establishing a UK office:
This is another milestone in the continuing development and expansion of GeckoSystems which will allow us to actively pursue and address the interest and potential that exists in this region. Our new presence allows GeckoSystems the unique opportunity to market our innovative mobile robot solutions to knowledgeable customers while fulfilling all contractual requirements." stated Mr. Martin Spencer, President/CEO of GeckoSystems, Inc. "The appointments of Messrs. Greg Stone and Russell Barley as Directors to GeckoSystems UK Ltd. brings a depth of experience and knowledge of sales and service in this sector. We are pleased to welcome them to the GeckoSystems’ organization," he stated.
http://web.archive.org/web/20070126190425/http://www.geckosystems.com/company/UKPR01152007.php

There are no subsequent mentions of a UK office and various posters have suggested the deal was another disaster, however, like other “great news” PRs, this story simply vanished from GOSY’s history.


In addition to failed deals, GOSY likes to blame former employees for its inability to realize any meaningful success.
GeckoSystems, Inc. (OTC:GKSY - News) is pleased to announce that the Company has appointed Mr. George MacLeod to the GeckoSystems Board of Directors. Mr. MacLeod will also continue in his position as Senior Vice President of Business Development of the company. GeckoSystems, Inc. provides practical mobile robot solutions for safety, security, and serviceTM in all types of industries.
Mr. MacLeod has previously held senior executive management positions in leading edge technology companies based in Europe, the Pacific Rim and Africa. During the early eighties, he was Managing Director of Analytical Instruments Pty based in South Africa. Analytical Instruments developed one of the first remote controlled robotic devices for use in bomb detection and mining as well as other gas chromatography equipment. He also worked for AMT Accel UK -- a wholly owned subsidiary of AMT Industries of Singapore, a technology company producing printers and the first continuous paper laser printer. While at AMT, he held the position of Managing Director. Mr. MacLeod is a proven international profit and loss sales-led executive experienced in a wide range of business sectors.
"We are very pleased to announce the appointment of Mr. George MacLeod to the GeckoSystems' Board of Directors. He brings a wealth of business experience coupled with a deep understanding of international business and the opportunities they present. He will also be continuing with his current involvement within the company which is an important role in the projected growth and continued world wide development of GeckoSystems," stated Mr. R. Martin Spencer, Chairman of the Board, CEO and President of GeckoSystems, Inc.
http://web.archive.org/web/20070126190448/http://www.geckosystems.com/company/GeorgeMacLeod.php

GeckoSystems, Inc. (OTC:GKSY - News) is pleased to announce that the Board of Directors has appointed Mr. Neil T. Wallace to the position of Vice President, Legal and Public Affairs. Mr. Wallace holds a J.D. and an economics degree and has held several senior management positions domestically.
"The appointment of Mr. Wallace provides the company with a depth of legal acumen which is important and necessary in business today," commented Mr. R. Martin Spencer, CEO/President of GeckoSystems, Inc. "During 2006 we have achieved some major milestones for GeckoSystems. We are confident that this new appointment will enhance and compliment the existing personnel, allowing the Company to capitalize on the substantial opportunities in the market which in turn will add shareholder value. We have several near term patent opportunities available to us and Mr. Wallace's support will help ensure their timely award," added Mr. Spencer.
http://web.archive.org/web/20070110022340/http://www.geckosystems.com/company/NeilWallace.php

Perhaps most surprising of all is that the company blames the valuation of the stock (as noted, $12k in revenues, $8 million in losses, $88 million in assets, $1.3 million + in liabilities) as being “only” valued at about $2 million because of the actions of these two individuals.
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=56222

And the CEO doesn’t worry so much about losing $8 million with $12k in sales. His big concern is “Our robots can be made into lethal weapons. Do you understand computer driven machines that track down and kill people? This is "Terminator" technology. We cannot sell them to "just" anyone at anytime in any place!!
Therefore, every robot must be tracked as to owner, just like another lethal weapon in our civilization, cars! Mobile robots are worse since ours can find people and be modified to kill people without a human controlling them.”
http://www.otcmarkets.com/financialReportViewer?symbol=GOSY&id=61218

Formef employee Neil Wallace has won a $68,000 judgment against GOSY that is still outstanding.
http://courtconnect.courts.delaware.gov/public/ck_public_qry_doct.cp_dktrpt_frames?backto=P&case_id=SK09C-02-030&begin_date=&end_date=
GOSY’s appeal to have it overturned was denied.

There’s another judgment against the company in favor of Harold Wallace, a disabled, elderly veteran, for $17,100. Spencer also tried to appeal that award and here’s what the judge had to say, “ IT IS DETERMINED THAT R. MARTIN SPENCER, THE INDIVIDUAL DEFENDANT, ACCEPTED SERVICE AND ENTERED HIS APPEARANCEIN THIS CASE BY ANSWERING THE COMPLAINT AND SUBMITTING NUMEROUS LETTERS TO THE COURT. IT IS FURTHER DETERMINED THAT MR. SPENCER FAILED TO APPEAR FOR TWO MANDATORY APPEARANCES IN THIS COURT, DESPITE WARNINGS THAT HE MUST APPEAR TO BE HEARD. IT IS ORDERED THAT JUDGMENT BY DFAULT BE AND HEREBY IS ENTERED IN FAVOR OF PLAINTIFF'S AGAINST THIS DEFENDANT IN THE PRINICPAL SUM OF $17,100.00, PLUS COURT COSTS WITH POST-JUDGMENT INTEREST AT THE LEGAL RATE OF 5.5% FROM DATE OF JUDGMENT UNTIL DATE OF SATISFACTION. IT IS DETERMINED THAT GECKOSYSTEMS INTERNATIONAL, INC., THE CORPORATE DEFENDANT, FAILED TO ENTERED ITS APPEARANCE AND FILE AN ANSWER IN THIS CASE BY FAILING TO OBTAIN PROPER REPRESENTATION BY A DELAWARE ATTORNEY AS REQUIRED THE RULES AND LAWS OF THIS STATE, DESPITE BEING ADVISED TO DO SO BY THE COURT. IT IS FURTHER DETERMINED THAT THE CORPORATION FAILED TO APPEAR FOR TWO MANDATORY APPEARANCES IN THIS COURT. IT IS ORDERED THAT JUDGMENT BY DEFAULT BE, AND HEREBY IS ENTERED IN FAVOR OF PLAINTIFF'S AGAINST THIS DEFENDANT, IN THE PRINCIPAL SUM OF THE $17,100.00, PLUS COURT COSTS WITH POST JUDGMENT INTEREST AT THE LEGAL RATE OF 5.5% FROM DATE OF JUDGMENT UNTIL DATE OF SATISFACTION. THE JUDGMENT IS DEEMED TO BE JOINT AND SEVERAL BETWEEN BOTH CO-DEFENDANTS. IT IS SO ORDERED. S/ANNE H. REIGLE, JUDGE”
http://courtconnect.courts.delaware.gov/public/ck_public_qry_doct.cp_dktrpt_frames?backto=P&case_id=CPU5-09-000438&begin_date=&end_date=