Replies to post #178124 on NeoMedia Technologies, Inc (NEOM)

[phoenix69]

Whatever.

[cloud3]

Claw, I've been confused about their role and intentions for a long time. Lots of mixed info and opinion. I want to think they have a VC-type relationship, where they make money if NEOM succeeds - making all their actions supportive ones. (But...)

I've also wondered if there was a real change in the approach when they became YA. It seems to me that there has been an improvement to some degree in the language/implied intent from the Cornell days. But then again, the filings are less clear to me than Finnegan's Wake.

[yellowjacket]

VCs usually don't advance $50MM to one company either...and by the time they do the VCs (collectively) own 100% of the company with only a small percentage held by current management (by that time it's team #4 in place??). You'll never see a round 'H' in VC financings because by the time that occurs there is no market & no exit strategy. I've experienced this personally. :-( YJ. P.S. I don't think that's the case here. :-)

[beam11]

Claw - Far be it from me to pump YA - However, based on Jonesie's Cornell/YA charts (thanks Jonesie), find another company YA has gone so far out on a limb, to keep pumping money into with virtually 0 revenue for 3 years! With the FMV assets NEOM owns, to back up the debentures and preferred stock held by YA, at least the doors stayed open.

The conversion and dilution could be substantially worse if YA had elected to immediately take over NEOM and sell it outright based on a take over control percentage of ownership. This did not/has not happen, and it appears the ownership/percentage (perhaps tipping a little from time to time), is generally maintained to reflect YA's "going forward intent", of working out a deal which may not destroy our shareholder interest (I wish I knew for certain)

Complain if you must, about how bad it is now. We all do, but I would not want to go back to the days of knowing it may/or could be much worse - any day or time YA elected to take over NEOM with total dilution!

In some cases VC's pumping money into a corporation, have no preferred stock redemption dates, and can only liquidate or recover their investments when the corporation goes public. NEOM would not have survived depending totally on VC capital and if VC capital had been possible, IMO, NEOM would have been sold outright 3 years ago!

YA has continued to pump money into NEOM, because YA has a means of recovery with warrants and usury interest rates. I do not think VCs would have "hung in there", this long with NEOM, without continuous liquidation of various investor's capital, which must be replaced with other additional investor's capital, when any investor liquidates their interest in a VC - Not now for sure, as these investor funds are continuing to dry up!

I know YA accumulates investment capital to some degree from it's investors same as VCs, but most of their capital must be generated from the companies YA invests in, thereby creating a source to roll the money back into NEOM. VC's usually do not have this ability to the same degree as YA, and VC capitalization is generally much more difficult for a small company to obtain and much more difficult to retain on a continuous flow of years as YA has accomplished with NEOM.

I may have "coined the phrase a long time ago - YA has been NEOM's VC", only because NEOM had the ability to regenerate roll over funds, back to YA and it's investors with down spiraled dilution of NEOM in a period of building out a marketable system in which to operate and generate revenue.

Based in the current pps, YA's ability to continue the flow of funds into NEOM, based on the world wide market and economic conditions is tightening and slowing down!

I agree with YJ's summary and prospective outlook - but something has to happen for NEOM very soon!