"I don't see any debt on their balance sheet,"
Hmmm...you better double check the "liabilities" section on page 6 of the 11/16/2007 10Q for the period ending September 30, 2007.
Total current liabilities...$10,272,538. Please note that the bulk of this is $7,726,561 in deferred revenue. "Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, a software company sells and receives payment for a computer program before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.
Now in the case of IBIN I would suspect that almost 100% of the revenue is at risk. Why, simply because the company collects little if any revenue from the sales of products.
If you looked at an earlier post of mine you will note that IBIN/IBSG/IGII has collected only a small fraction of revenue since inception. Its main source of income has been through the sale of stock. How do you think the company ran up $23,000,000+ of accounts receivable on a total of $25,900,000 in sales since inception.
"their cash level from 6/30/07 to 9/30/07 went from $3,122,319 to $3,281,388. If you go back to 3/31/07 their cash level was $705,881, which is a total increase of $2.58MM."
That's the sad part of the equation. Why, because if you carefully read the same filing you will find a little item near the bottom of page 8 entitled: "Common stock issued for cash" in the amount of $2,805,513.
So, if their total increase in cash reserves went from $705,881 on 3/31 to $3,281,388 in 9/30 it was due to the fact that they sold $2,805,513 worth of stock in that interim. So in essence, the company actually burned through an additional $230,006 above and beyond any supposed income.
That's a pretty sad state of affairs, isn't it? Imagine yourself being in business for 4+ years and collecting only about 12% of your gross sales in that time period. If IBIN was a legitimate company, the carrying costs on the interest alone on $23MM would exceed the actual amount of money collected ($2.9MM) in a four year period.
Technically speaking, IMO it may be possible that IBIN/IBSG/IGII has collected much less than the $2.9MM I have attributed to it as I haven't kept up with current filings for several years and have not had a chance to view them all.
The one thing I can point out is that I was the first to discover the fraud perpetrated on investors by Rivers. I make no bones about calling it fraud either. You can quote me on that. I had it figured out over a year before Rivers admitted to it in a 2005 SEC filing.
The predecessor company that Rivers touted back in 2004 as having been in business for 7 years and had income (if I recall correctly) of about $5MM in 2003 was actually nothing more than a shell company set up in early 2003 and had virtually no income whatsoever.
I challenge you to find any licensee, anywhere on the planet who has paid Rivers one red cent for his program, much less owe $23,000,000 for its use.
I challenge you to come up with one material contract signed between IGII/IBSG/IBIN and a licensee that requires said company to pay the usage fees touted by Rivers in PR and SEC filings.
Have fun!
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