TRANSCRIPT OF LIVE CHAT WITH DAN HOYNG,CEO OF IFTP investornuts.com
Mr. Hoyng: Thank you all for your interest in IFTP I will field as many questions as possible.
Q: Please state the current float, O/S.
A: The current number of free trading shares is about 55 million.
Q: Of that what is actually in the shareholder's hands, free trading and the float are quite different.
A: We will be filing registration statement on about 30 million, however, most of those shares have a dribble out provision and will take months to come into the market.
Q: So that would give us 85M but with provisions?
A: I am not sure of the exact breakdown of the share structure, I will research and our secretary will make the info available.
Q: But we are still only 100 million authorized?
A: Yes, the authorized is still only 100 million. The shares were previously issued for the debt reduction and new product acquisitions over the summer
Q: IFTP had the momentum during our run as we were trading 12 million plus daily, which is quite impressive through 1.00. Yet IFTP stopped the revenue press releases, and stopped all positive current info. Why would this happen?
A: I do not believe we stopped all positive press releases, we have had numerous press releases. We wanted to go biweekly to allow for potential ups and downs of our business and not have shareholders panic if revenues were down for a week. However, I must admit revenue has been terrific and consistent
Q: But the share price really got hit which was a cause of both, your reverse split comment and the missed week of revenues.
A: We do not control the stock price the market makers do. I can only keep you informed.
Q: You are aware of what a reverse split would to do to IFTP? Your price would never hit the minimum requirement anyway. Just because a split happened it would not stop any dumping. Please state again there will be no reverse split.
A: My press release today clearly states, NO REVERSE SPLIT. The shareholders have spoken. Given our projected EPS the shareholders would rather have more shares and allow the price to move up on its own.
Q: Is IFTP launching a stock buy back campaign.
A: Not at this time, the company needs to continue to fund its growth, maybe in a year that could become an issue
Q: Timetable for the fat fighting system's launch?
A: The fat fighting system will be tested this weekend in limited release
Q: Matt has stated publically that fund managers have interest in IFTP, what is the status of this?
A: When the shareholders help drive the price back to about $1.00 and then $2.00 we have several funds who have expressed interest in our company. I am aware of several hedge funds who already invested.
Q: How is the area of the US chosen for infomercial coverage? Some investors expressed concern of not seeing them?
A: Our media buyers are the best in the country. Different products sell well in different parts of the country and at different times. It is based on return on investment.
Q: How will the Investor Relations issues be addressed now that Matt is no longer here?
A: We have interviewed many firms. It is amazing how the firms that represent only NASDAQ companies are interested because of share trading volume and potential. A decision will be made next week. A big thank you to Matt for a job well done. We all are aware how tough it has been to reach Matt but he did his best.
Q: Is IFTP currently using their cash flow to cover expenses or still issuing shares for payment?
A: Cash flow is continuing to be invested in more inventory and our new projects. We still have money available from our recent raises to cover the working capital. Remember the Torso Tiger is a multiple pay option and takes ninety days to collect funds. We have over two million in receivables.
Q: Why did the Torso Tiger people immediately sell 8 million shares through berkum and FLSC. I see no logical reason for such an event to happen. Especially since IFTP didn't even have control yet of the product?
A: Our agreement was they were issued $1,000,000 worth of stock to manage the campaign. It was a tremendous risk for them to give up their product to IFTP. It has worked out great for both parties. But at the time they were just wanting to feel secure in their position.
Q: The Body Rocker has been tested marketed sporadically and fully launched for 1 day only on a quite impressive scale, however, most areas never received it. What is the current launch status of the Body Rocker, and will it be global immediately on relaunch? And what is the sales to date on the Body Rocker?
A: We have tested less than $50,000 in media at this point. I think my shareholder letter today addresses the Body Rocker very clearly. The product has actually sold more internationally than locally, but that will change after our launch.
Q: What is the percentage that the past owners get for sales of the Torso Tiger, and are they paid by free trading stock or by cash?
A: Torso Tiger receives 5% of the gross on TV sales and I believe 17% (would need to verify) on retail where our margins are much higher.
Q: What positions do the Torso Tiger people hold in IFTP at this time? Also how are they paid for their service? Cash or free trading stock?
A: Fees are paid in cash from operations. Torso Tiger people strictly manage the campaign as outside consultants.
Q: You stated the shareholders are responsible for getting us to $1-2, we succeeded in the $1 already, your delays in the Body Rocker have hurt, I personally feel if the stock stopped flowing into the market you would be $3 plus right now.
A: I do not believe the delay in the Body Rocker has hurt. The price went up so quickly that many market makers did a lot of profit taking. The revenues from the Torso Tiger is strong enough with the multiples to achieve 2-3 dollars per share. We look at the Body Rocker as a project that could develop into a several year campaign like the bowflex and it takes a lot of time. An early mistake can cost you years of profit.
Mr. Hoyng: I appreciate your interest. If shareholders have questions, please send to Infotopia@USA.com we will try to answer and post for all shareholders. Be patient we have a company to run and we will try our best to respond quickly.
Again, I repeat no reverse split and we will continue to work with market makers to give them all the information so they will want to maintain a long position. I hope with the shareholders help, that we can meet the reporting requirements for NASDAQ small cap or NASDAQ national market in early 2001.
Again thanks and all the best GO LONG!! |
