Replies to post #26024 on Revolutionary Concepts Inc (fka REVO)

[WashingtonRedskins]

What we have is a hidden gem. Revo is on the sneak and I wish I had more money to buy these cheap shares

[Krysti]

Investors should know what REVO owns, purefreewater.
They should also know what REVO does not own.
Then they should determine the commercial market for what is owned. This has to be done before any, realistic, commercial value can be placed on what REVO owns.

In a recent court case the REVO CEO admitted that he has never undertaken any market research to determine the level of commercial interest in the REVO patent. He also admitted that he has never made any sales projections. He then agreed that his entire approach is based on no more than "a wing and a prayer".

For those reasons I can totally agree with the statement that

Guys it doesn't take much research to start thinking this patent might be worth at least $100-$200 million = .20-.40PPS

But, when a little research is undertaken it becomes hard to justify the $100m - $200m valuation.

What REVO Owns
REVO owns a patent for an audio-video communication system which has, at its heart, a Personal Computer to store data and link with peripheral devices.
Source: http://www.google.com.uy/patents/US8144184

What REVO does not own
REVO does not own a patent to control the use of biometric data.
REVO does not own a patent to control the use of IP cameras.
REVO does not own a patent for linking a camera and a cell phone.

The EyeTalk System
What REVO has is a system which pulls together a variety of patented processes (such as using biometric data, using an IP camera, using wireless frequencies, and using Internet Protocols) into an application that is controlled by a computerized controller (the personal computer).

The Commercial Weakness of EyeTalk
The EyeTalk system suffers from having a PC at its heart. It requires that data and communications be channeled through the PC for connectivity. This is old technology.
Nowadays smart devices have sufficient computing power and connectivity to communicate directly. There is no need to use a PC as a controller.

Infringements
Biometrics are used in passports, and international travelers are used to looking into a camera for an iris scan. But there's no REVO patent infringement.

Remote home monitoring is an increasingly popular DIY solution, because it can be installed easily, and it can be monitored without a paid for monitoring service. The monitoring may involve a camera, but that camera is viewed through a direct connection with smart (mobile) phone. There's no personal computer involved. And there's no patent infringement.

Valuing the patent
The patent has some value. The company shows that value at a negligible amount (less that $100k) in the Balance Sheet.
The problem is that the only 'evidence' of commercial interest in the patent is what the company posts in PRs. And those PRs have proven to be totally unreliable.
There is no market research to indicate: (a) how many units would be produced, (b) the unit retail price, (c) how many units would be sold, or (d) the royalty rate to be charged.

In the absence of any market research, it is hard to see how the patent can be valued at more than the negligible figure shown in the Balance Sheet.