I will probably be labeled a basher as well but I hold over 100,000 shares and of late have been very disturbed by the ongoings of NEOM. I have sent the CEO 2 emails and downloaded a complaint form to file with the SEC to investigate the company. Here are some of my concerns.
1. When NEOM purchased CSI it was a profitable business, even according to their press release, and now almost 2 years later its losing money hand over fist. The cost of revenue alone is nearly as much as the revenue they are generating, before general and admin expenses are even accounted for. Further after reviewing the SEC filing in detail it was a family operation, and all the share holders last names where Hill. The significance of this you will see in my next point. Besides the fact that NEOM paid 2.5 million for this business, plus 7 million shares of common stock, and in return got a guarantee that the company would have at least $200,000.00 in assets is a joke, especially now after seeing the huge losses to date.
2. Ipoint media is also a family owned business apparently, which had 1 client whom they lost in early 2005 and now have zero revenue. This is the company we were promised shares of as a dividend. Ironically NEOM and CORNELL(sound familiar) both invested in this company in 2004 and NEOM bought 1 million dollars worth of shares at over 24.00 a share as did Cornell. I know I have not recieved my didvidend shares, and I dont know if any of you have, but now over a year later they are pretty much worthless, since the company has zero clients and zero revenue. I believe when they filed to register the shares in JUNE or JULY the total revenue for 2005 was $15,000.00. And we paid 1 million of our funds for this???????
3. Speaking of the 1 million, we borrowed the funds from Cornell to purchase CSI. In return we gave them a sweet deal with options to buy our stock for pennies on the dollar, plus a 5 percent retention fee, same deal that has been entered into with IPOINT. Then we borrowed from them again to invest the 1 million in ipoint as well as to purchase BSDS. We are repaying those loans by selling them shares of NEOM and then using that money to pay the loan. However they are required to sell shares on the open market as they acquire new shares so that they never hold more then 9 percent of neom shares. Thats why the recent registration of 54 million shares to be sold by Cornell and the Consulting firm, of which NEOM doesnt see an7y of the money. Thats why there is so much downward pressure on the stock price currently. There are 54 million new shares just registered and being dumped on the market by cornell.
anyone with any thoughts or opinions I would like to hear them. I have other concerns as well, but these are my main ones at the moment. I recently moved from the Ft. Meyers area to Texas so I wont be at the meeting but I bet it will be a lot of smoke and mirrors, as I have been getting from insiders all along. Their PR man cant even get the dates right as to when paperclick was initially launched.
AI
