My new SIO ReportThis is probably the last one for a while.
My main concern and it keeps growing is Management, I have tried and looked at every possible excuse and angle and don`t see a way out.
When you see the same team for over 15 years with 9 years since debuting in the Venture without turning a profit it`s time for a change.
We have changed our business model completely from Tech to VOD when the second should have complimented by the first, we also abandoned 3DLive when it was our most hopeful plan in between .
Our CEO is by his own saying a 3D lover, crazy entrepreneur, total geek and just another happy guy!, that`s not what we need, we need somebody serious with more ambition and a know how to sell, deliver, execute, somebody that can market and get this thing to produce and give the investor-shareholder a decent return after years of dissapointments, non clarity, non accountability and no respect, at least that`s the way I see it and as of now there`s nothing that will make me change my mind.
One thing is to be long, and another thing is to be forever.
We are and have been rich in PRs, deals, partnerships but none of them except for the Samsung S2D switch settlement and the 2010 FIFA gave us anything in return, so there we are after years of producing the tech and then the content we sit at $0.21 with little hope in the near future of changing that. Like always I hope and pray I`m wrong but has not happened yet.
Our biggest catalyst in the last 14 months has been a Fund Manager with no clear intentions but with a convincing tone that gives us a boost everytime he talks,but never backed by the Company.
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Financials:
every one has been a dissapointment, we are in excess of $35.000.000 in the red, having never made a profit except for 2 quarters ago, a tiny one thanks to an advance royalty payment from WiLan.
Apparently right now we sit at a Burn Rate of $155.000 per month which equals $365.000 per quarter, but last quarter in which we did not have any extraordinary expense we still lost $ 600.000, meaning that royalties ,3Dgo revenues from rentals and every other source don`t amount to much, delayed again for a million reasons when it was supposed to cover a good chunk of the running.
So the calculations as to how much we have and how long will it last do not apply at all, the burn rate is one thing but there is a horse in the stable that we don`t control.
If we can get the rest of the warrants exercised we`ll be a bit better, but what we really need is to get revenues-profits from 3Dgo, get off the excuses and deliver.
CEs:
Vizio with the HI-Fi but kind of stalled due to changes in discontinuing some models.
Panasonic on board with their own platform and settlement of the S2D switch infrigement.
LG on board with their own platforms but strangely have not made a move in settling the S2D switch infrigement (which will make a tremendous good to our Finances) making the family picture a bit cloudy.
Sony has settled the S2D switch but no signs on coming on board yet.
Samsung has settled the S2D switch infrigement, one of our biggest if not our big pay cheque and now has signed a deal to come on board.
Hisense-TCL both signed a global deal for the Hi-Fi and changed the rules as to when Content could be delivered to China, but Hisense none the less has paid some royalties from it.
WE are waiting on the rest, maybe when the new format kicks in they may jump, or not.
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WiLan:
Two cash advances from them tied to the collection of royalties from the S2D switch.
The deal was structured to be confidential but we know we split the proceeds and I imagine 50-50.
Lately they also were giving an expansion for more patents related to 3D for again under a deal to split proceeds including the Temporal Interpolation which apparently is used on most TVs with nobody signed on yet.
Meaning that from now on everything new collected from the S2D switch and Temporal Interpolation infrigements will be divided equally between WiLan and Sio.
As per last CC Routhier said not to expect anything from Wilan till 2016, when RG asked first or second half he said that was a Crystal Ball answer, not to quote him on that, which brings me to why would WiLan pay upfront for mostly money they will not recoup till sometime in 2016, unless again something may pop up out of nowhere and be used as an Ace.
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3DGo:
Vizio is on with the HiFi.
Panasonic is on with their own platform.
LG is on with it`s own platform.
Samsung signed to come on board with ?? own platform or new format?.
Hisense and TCL are on are they not in??, it never gets really clarified.
And I imagine the rest will come in with the new format.
So far 3DGo has been a cash cow, a complete disappointment, it does not matter which way you look at it.
If we count the original SIO Library, the retro one, this will be the third time we reencode it.
Unless the Max lottery falls on Richardson Street it will be a long time before we recoup the investment.
WE just changed the Format again with something much better, a mix of Hi-Fi enhanced SxS much better than SxS but not as good as Hi-Fi or so it seems, which by the way it does not matter since apparently they have started to reencode the Library to this new Format.
We have been extremely late on delivering and executing anything 3DGo, now finally we have all the pieces but the trick is to put them all together being frugal and beating the clock.
Did we learn anything at all from all our findings and mistakes ?, we`ll know soon enough.
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Studios:
Disney-Universal-Marvel-Pixar for sure.
Paramount seems nowhere to be found.
National geograpic, are they still in.
Starz?.
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The Caisse:
What a strange bird this turned out to be.
They exercised more warrants and only have 2.500.000 left which I imagine they will exercise again if the need is there.
Compared to the hundreds of $billions they have this is just play money for some kid in training, I said this because of their tolerance as to how things run, don`t forget they got in on the 2012 PP at 0.33 P/S with no warrants, right now they stand at 16.200.000 and once they cash them all 18.700.000 out of a possible close to 118.000.000.
They have more than sufficient power-control to demand or do many things, but so far they just sit there watching in.
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Except for the Caisse as of now over 16 million and the combination of Routhier-Richard-Malo over 9 million, we have Beacon-GM nets of over 6 million each and TD with well over 7 million net, now who owns those shares or if they have been disposed or not remains to be known.
Right now we have 110.000 .000 shares issued and if all warrants get exercised 117.500.000 to Ralph mentioned close to 120.000.000 but Choquette is closer to 118.000.000, in any case LOTS of shares.
So what to expect, LOTS again and fast, that`s why I keep on saying we need a new horse with selling brains that can win this race for us, at least put it in a good stable where we hopefully can make it sell the farm, because honestly I don`t think that SIO by itself can become what they preach, it takes balls,brains and lots of money ( at the moment we don`t have any ) and as always time is of the essence.
As always IMHO>