Pounce Technologies Inc. V.POI.H

an email from Slyce' management

[HagenvT]

I sent an email to Roy Roman, asking him, what he thinks about the decline of the share price and the impact that will have on the company and on the actual shareholders.

Here is, what Cameron Chell answered accordingly:

• the market is in a panic mode and their is no appetite for uncertainty
• the company will continue to execute its business model
• if the existing shareholders don’t see the value a new set will
• value is value and someone will realize it and start driving the price up

• taking an investment view and not a trading view is the only way to see our way through our financing requirements
• the key is insuring to get strong shareholders that are investors and not traders
• another key is raising as much money as possible
• the company is addressing these both at this moment

If someone likes to make a comment ... 

[gwizard]

You should have asked why management isn't buying shares hand over fist at these prices...

[HagenvT]

Sorry, that I didn't but he gave the answer anyway, implicitly:  . They don't think in terms of trading but in terms of investing  .  If the existing shareholders don’t see the value a new set wil. . What I learn from that answer is, that they are convinced, that value will beat market pessimism in the end.

[lscfa]

So tired of this lame argument. Mgmt takes part of their salary in options in lieu of a higher cash salary. This is equivalent to insider buying. Also, all executives of public companies are advised to diversify and not hold all their wealth in the company they run.

[lamothze]

And it's not unethical to do insider buying while negociating deal with new customers

[lamothze]

Remove the not from my last post ... Basically they can't do insider trading because they are talking with potential new customers ...

[Leafs4Life]

The thing that jumps out at me is the mention of "financing requirements"  And "raising as much money as possible." Slyce had $7,620,256 in total assets as of July 31st of which 6.1 million was cash .  Their loss for the quarter was $3,218,306.  At the current rate they have just over six months before they go broke.  They just did a private

[lscfa]

WRONG. The "current rate" you use was the last qtrly results when they had 5 customers. They now have 11 customers and guided in the call that another 3 to 5 will be added by year end.....

[Leafs4Life]

You're right, 6 months was hyperbolic and probably innacurate. But we can do some math to speculate why Chell says Slyce has "financing requirements."  If five customers in the last public quarter equals approximately $435k in revenue that means 11 customers (your number for this quarter) will deliver around a million in revenue (assuming similar rates and zero customer

[lscfa]

In the last conf. call Chell noted that there will be no financing until the end of Q1 2016 and it may take the creative form of customer based financing. 

[frannymc]

I find that interesting. Some form of constomer based financing will actually create a business model that would make SLC accessible to small business as well and give them a larger client base. I will be watching this a lot closer

[Leafs4Life]

Is it your understanding that this 'creative customer based financing' would mean that slyce's clients would buy equity in slyce along with paying to use the visual search? Or would they just pay a certian amount to get equity plus free use of the service?     I'm asking because I genuinely don't know what a deal like that would look like. Insight would be

[frannymc]

I'm thinking more along the lines of pay per click. Makes sense, and it is in line with the way most search engines do things. With something like that SLC would become the leader in the business. But who knows I guess we will have to wait and see.

[lscfa]

I am not sure what Chell means by customer based financing but I am pretty sure it is not equity financing as the point is to avoid dilution. SLC is working with big retailers. If they sign a licensing deal with a behemoth like Home Depot for example maybe they will arrange for HD to prepay a year's worth of monthly licensing fees with a built-in interest rate payable to HD. 

[HagenvT]

I think it's a good guess, that "Customer Based Financing" could mean prepaid licensing fees with a certain discount. That would be a clever move to get money for further growth.

[teevee]

that is another way of saying, managment didn't deliver what they promised, the fund managers are dumping,  and a secondary financing isn't available. Now management has to try to invent something they can sell their customers to finance? Pathetic....this is a broken business model. Look out for this trading under $.05/share.

[BumpInTheNight]

What exactly did they promise? Everything management said they would do, they have done. Now all they need to do is to show us the money.

[lscfa]

You are also missing that SLC is looking to increase monthly fees received from customers by 5x..... Revenue Model  –  Monthly  Recurring Revenue  Upsell plus Usage  Fees Slyce  looks to  monthly  licence  fees as its primary  revenue  line  with  the  level  of  fees to  be  determined  by the  

[lscfa]

Loser4life....glad to see you admit you were wrong....