My thoughts
One more cycle has ended.
Like in October 2012 we had a PP in October 2013, the SP kept falling, 3DGo still struggling, one more CES without any bombshells, and another AGM full of promises and reassurances of things that were but weren`t.
Déjà vu ?, yes indeed, nothing did change, but this time we ended up with a new BOD and that`s where the out with the old welcome the new will hopefully change our future.
We had a good BOD also but they got too cozy and let one man run the show and make the decisions.
Over seven years with only a couple of changes it was time to inject new blood.
Again we have a very capable BOD, new and with a new mandate.
If anything had to be lean and mean this was it.
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Going back to the October 2012-2013 PPs, in 2012 the Caisse bought 5.425.000 shares for $1.800.000 with no warrants, in Oct 2013 the Caisse bought 6.500.000 shares for $650.000 with a full warrant at $0.18, that`s one year later , something went wrong, we know, they know but still.
That called for changes and we are seeing them already, there may be more hopefully since every new BOD member has a speciality that we can use.
In regards to the new payment structure as long as they perform and bring the value back to the Company I am all for it.
If you do the math it can be very profitable for them or it can be a bust,I hope the first.
The remuneration for members it`s not that great in any case but can turn out the opposite.
I like to mention again that George Karam the new Chairman of the Board bought 1 million shares with the corresponding warrants on the last PP,telling us he is serious and commited.
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A few things went drastically wrong after the closing of the last PP.
One was the orgy of selling-buying of shares.
It went against reason, we had money again, 3DGo even as slow as it is was finally off the ground, there was talk already of changes to the BOD and another promising as usual CES.
So what went wrong ?, what triggered that action ? driving the SP all the way down to 0.06.
We can blame some to EOY Capital Loss Season, but the rest ?.
Lots of money was lost and made, too much and still no answer or reason.
There were almost 29 million shares traded with no apparent reason to justify it.
Global Maxfin bought over 10 million shares and sold 7.6 million most through the gypsy trades from management and ANON sold almost 9 million and bought almost 3 million.
I don`t think we`ll ever know what happened.
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CES 2014 came and went with a minuscule two liner saying about the good demonstration of a Toshiba 4K-3D with SIO technology, and much later we found out through an obscure web site about the demo (they said Vizio) and another one of a tablet with also SIO technology.
Through all these happenings some leaks and rumors developed and the word in the street and some Brokers was to buy SIO, was almost obvious that something was happening or was going to happen and another mini orgy of buying shares developed, this time an almost three weeks 6.3 million shares, and again NOTHING, what triggered, who started it ? another wrong happening.
Were all this happy triggered things with a meaning ?, lower, raise the SP, for what purpose ?.
Something most likely we`ll never know again.
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Another AGM just ended with the same results, lots to come via CE signings, 3DGo taking off, Panasonic good news, Wi-Lan doing great, 3D is great and will eventually take off.
From the AGM the best news for me is the BOD change, I like it, they may finally get this thing going with a different approach and execution.
They have the ingredients and they should have what it needs to get them out there.
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3DGo ,I said it was pathetic and still think the same.
The numbers don`t jive, assuming like CMax said that we are playing with 200.000 3D Vizio TVs even at the high number of 9.000 users it`s only 4.5%, and the revenues only come to 1,2 movies rented per user.
I don`t know what kind of bookkeeping they use but in any case the results don`t justify ( YET ) the investment we have in it.
Will Panasonic change that ??, Let`s hope so, but how ?.
This is from the last update.
Since the 3DGO! service is only available in SENSIO Hi-Fi 3D, technology licensing revenues can be expected from all 3DGO! deals with CE manufacturers unless otherwise specifically indicated. For legacy devices (i.e. 3DTVs already sold to consumers), most technology licensing deals will be based on a recoupment from the revenue share portion which would normally be paid to CE manufacturers for the use of their connected 3DTV platform. In other words, SENSIO will be deducting a technology licensing fee from the revenue share normally payable to CE manufacturers on each rental by end users. The Panasonic agreement is based on such licensing terms. The standard licensing model based on a per unit royalty remains active and is our preferred model, namely for future 3DTV sales in the market,
So 3DGo still our number one priority but we are still not doing a good job in marketing.
We can`t forget that comes March we`ll start renewing the deal with Disney and Paramount, SIO will try to renegotiate on the basis on usage and new projections, I wish them the best, the mouse against the cat.
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Hisense-TCL, they are in they are not, they were the ticket ,they were not.
But there`s one thing, apparently they have sold a combined in excess of 10 million 3D TVs since the signed deal with SIO.
They were both Global deals, we found lately that till we provide content in China we will not see any revenues, but now all of a sudden they are small revenues from Hisense sales in China, which is what ?.
In any case there will be a big amount of money when and if we provide content in China, all the backlog of sold 3D TVs by both Companies.
There are other North American Companies providing streaming with 2D already in China, I don`t know what the problem is with the government except for censorship of certain western movies, but that should be easy to address and they do have a 3D Channel already.
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Something that bothers me, a few CCs back Routhier was asked by RG about Hi-Fi chips since we have deals with most of the Big Chip Makers.
Routhier mentioned that it was hard with VIZIO but an LG would only take at the most 4 months to activate since the chips were already there. That statement was repeated as to most of all new 3D TVs in the last two years have the SIO Hi-Fi chip in them.
Which brings me to Samsung settling for infringement of S2D switch and paying a good sum, so did Panasonic and now Panasonic is going the porting way to show SIO 3DGo movies when they already have the chip Hi-Fi on their TVs.
Am I missing something ?, is it not easier and cheaper to activate our chip ?, besides being clearer picture?.
Hisense and TCL already are set up, so even with small sales in the USA they should be able to show 3DGo.
Maybe they can sort this out and proceed with common sense.
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WE are cutting and trimming, paying severances, changing the payment of the BOD to save money for better use but we are still paying Hayden in the USA $5.000 usd per month for help in Investor Relations down there, I have not seen anything coming out of there yet,it was a 1 year deal.
I don`t believe we have to cut so much, all we need is a lean and mean BOD not a workforce per se.
I believe we are down again to 18-20 employees, I may be wrong ,that`s what I read.
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Nick Routhier salary :
2011---$173.000. Total compensation $2016.058.
2012---$184.777 Total compensation-$329.735.
2013---$187.055 total compensation-$198.596.
R Laberge salary.
2011---$158.077 total compensation $304.022.
2012---$164.246- --total compensation $306.050.
2013---$166.271 total compensation $177.396
Eric Choqutte
2011—$110.365
2012---$136.038.
2013---$136.532.
Not much difference on total compensation.
I already posted how many shares they own,
They all have staggered due options.
Salaries are comparable to others depending how you see them, they don`t bother me.
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As of November 2013 we had $ 1.800.000 in the Bank.
We still have some deferred revenues.
We know that royalties from Vizio and Cyberlink are small even though steady.
3DGo will be a while yet before we see big steady revenues, hopefully once Panasonic comes on board they will rise substantially.
More deals from Wi-Lan on the stage.
The annual coming of a Major always luring.
If our share price climbs enough above the warrants price we should have another injection of cash, but people will be leary unless and till they climb enough to justify exercising them.
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What is the outlook, what do we need or want from the Company ?.
We still need more clarity and accountability, that`s for sure.
A devoted and capable team to make 3DGo work the way it supposes to.
I still believe that a different approach as to the benefit of just settle for the switch infringement and a way to sell the Hi-Fi should be explored, if not something will have to be done to combine through a different agreement the integration of the Hi-Fi and 3DGo to the benefit of everybody.
There has to be a reason as to why after all this time and with the chips already on their TVs the Majors are still reluctant to come on board. Content is there now, there are talks on some programming being available soon, there`s some already, consumers already paid for the 3D feature, it shouldn`t be that hard IMHO.
If there`s anything I`m glad is the new BOD, I may be wrong but I think that`s the reason the SP did not collapse yesterday, investors will give them a chance to prove themselves and change things.
Again IMHO.
Cheers.