Replies to post #301737 on NeoMedia Technologies, Inc (NEOM)

[sonofgodzilla]

**********10 STAR POST**********

[Poptech]

lesn: As we discussed during the shareholder vote, if shareholders did not approve a dilution mechanism, NeoMedia would be insolvent. Since January 2011, NeoMedia has been unable to even meet the interest obligations. With no dilution, NeoMedia is insolvent. As of the last 10Q, they had to borrow again and did not have sufficient cash to pay even one month of interest.

The timeline I presented was an argument against the repeated assumption that YA would move quickly to default NeoMedia. Using one example, I showed that assumption did not match YA's historical actions.

Now that it is clear there was no buyer for the debt SOON after the shareholder meeting, we are most certainly marching toward a full default. The SEC lawsuit against YA emphasized that YA had to move quicker on eliminating these types of investments from their fair value analysis. When that happens, YA sets the value of NeoMedia to $0, and then they have nothing left to lose by calling for a conversion. However, in NeoMedia's case, YA doesn't have full control of a default. With in kind program, they have spread that decision among private investors unrelated to NeoMedia.

"A vote for no on the R/S is much like the vote of one to become a suicide bomber, taking others out as they take themselves out ..."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91359233

It is tough to now argue, the vote didn't matter.

[jacksira]

Okay it doesn't hurt to wish. The truth is NEOM will not be ever available to pay off the debt YA is owed from our current business model. We need outside funding from some other source. Is it going to be a large mutual fund? As I have said numerous times if Laura would step up to the plate and buy some shares this would speak volumes to others. Without her commitment we are all just hoping and praying there is some news forth coming to make us rich. I just can't believe all this potential and we can't get this to move higher?

[WovenO2]

Nicely put. Well said. Bravo. I'll add to that, (from a technical perspective) NEOM has a greater chance of higher % runs at this level than most MJ stocks do.

Go NEOM

Also... I attended a social dinner last night with Dr. Soon. My phone was locked on NeoReader and wouldn't allow my smartphone to engage picture mode! Luckily, my wife (across the table) came through :-). This really did happen in a dream I had last night. How bizarre is that?

[RisknReturn]

Lesn, you are simply ignoring the facts that are shown clearly in the Form 10-Q authored by NEOM's executive management team. As of 9/30/13, NEOM has current liabilities of $118 million and total assets of $6 million (rounding up).

I think you need to "gimme a break" because that is well beyond hopelessly insolvent- I was being kind in my choice of words. All the charts in the world can't change the fact of NEOM's insolvency.

As for your question about why YA has not pulled the plug and forced BK, my guess is that YA has figured out that there is not enough value remaining after BK to make it worth anyone's time and effort.

The value of NEOM to YA was always in the death spiral dilution structure; in other words, its ability to convert debentures at a price lower than retail investors were willing to pay for their shares. What a sweet deal YA had for so many years at the expense of retail investors.