Following are the questions submitted to David Skinner.:
Mr. David Skinner,CEO 11/27/00
Winners Internet Network
The following questions are submitted from Winner Shareholders. They have been grouped by
different subjects. In some cases more than one question is listed on the subject, since the
additional question may carry a different point of view on the subject. Your prompt attention to
the answers of as many question as possible is requested.-Sincerely--Ed Pettee
Subject : Annual Shareholder Meeting
What has caused the delay in conducting an annual meeting ?When can we expect the date and
location of the meeting to be set?
Subject: Relisting
What is the status of relisting?
Has the SEC officially notified you that the Company has received a “fully reporting status”?
What exactly is the status of the 211 and will it be filled by more than one Market Maker?
Subject:Communications
Why has there been a communications blackout?
Who has told Winr that it must be silent? The SEC?,NASD? Winrs attorneys? What is the legal
basis for the silent period?
Subject:Marketing Expenses
What are the marketing results from the issuing of shares to Ron Sparkman and Petty Enterprises?
How does Winner expect the $1.5 mil. spent on Marketing in certain areas of the world to reap
shareholder and financial benefits? Specifically what efforts have been or are being undertaken in
South America?
Subject:Gambling Contracts
Please explain the status of Atlantic Interbet. If they are using Firecash, why are they still shown
under existing clients?
Why did we lose the gambling contracts? Which ones did we lose, have we gained any?We seem
to be losing more clients then gaining them , why is this happening and do you see a reversal of
this?
Will WINR continue to solicit the gaming industries transaction processing,or will WINR engage
with a partner to sell into this market?
According to the 3Q00, WINR is no longer processing for a major client. Who was the client and
why were services terminated? Is WINR still processing for Casablanca?
Subject: Plus Network
What is the present status of the Plus Network?
We gave $4.0 million dollars to cms for the Plus Network which appears to consist of just domain
names, do you ever plan on using or developing the Plus Network and at what expense?
What is the true time-table for the Plus Network to be up and generating revenues? What has
been the definitive hold-ups? What catagories will be launched first?
Subject: Cyberlink
Please explain in detail the licensing agreement with Cyberlink-at what point will the revenue from
this transaction be recognized & for what amount? Also will this be a recurring source of revenue
& how does this affect the software platform purchased as part of this seemingly reciprocal
agreement.?
Is what sense was APB 29 relevant to the lease agreement?
Subject: Cyberbank
What is the status of the cyberbank, are there any new developments.
Does the cyberbank agreement give cms 51% of processessing plus all licensing payments for
current clients or just when the cyberbank comes to be.
Subject:Software Lease
Why was the $3mil software lease considered a non monetary transaction? What did WINR get in
return?
Knowing that you gave more than you got in the software/plus network exchange how could
anyone believe that the $3 million would figure as profit to be figured in as earnings for that
year(99) or any year on which you based your high earnings figures projection.
Subject: Encryption Software
What about the encryption software? There was a lot of hype a while back in regards to this. Has
there been any contracts signed and are we generating revenue on this product.
Subject: Marketing and Public Relations Strategy
In July 2000 the Company issued 300,000 shares of restricted common stock to a single investor
in consideration of a contract for marketing and public relations.Who is the “individual investor”
that received these shares? At the very least please disclose what type of “marketing” and “public
relations” is or has been undertaken for Winner.
Subject: Operating expense questions 3rdqtr 10Q and other issues on reporting
Consulting costs of $64,887 through 9/30/00. Who are we paying this to and for what services?
Why are we paying bank charges equal to 1/2 of our bank balance through 9/30/00. bank charges
equal $20,994.
Why aren’t the profit and loss statements presented so the current quarter’s results are separated
instead of showing the cumulative figures for the year?
Is there an expectation that our reporting function will start being timely?
Please explain how WINR’s 10-Q came to be filed late. Who is responsible for insuring that such
deadlines are not missed?
Will we be able to separate revenues by type(gaming, software leases, e-commerce etc) so
stockholders can track them?
The investments in Supranet AG & Glennaire Financial Services are carried under fixed
assets.According to my understanding of these transactions, I would consider these should be
carried as line items Other assets ie. investments. Please advise why your CPA’s would classify as
fixed assets.
Subject: Website
A click on SEC on the website takes you to WINR filings, instead of Glennaire Financial.I
suggest that it be changed to Glennaire Financial so that people can retrieve the most current
information.
There seem to be other websites that indicate WINR is their processor. Why are these sites not
listed under clients on the Winner page?
A url www.unilet.at/uparteu.htm,indicates at a notation on the bottom of the page:Copyright by
Winners Internet Gesmbh & Co KG A-6800 Feldkirch. Is this Winners Internet related to WINR?
Subject:Investor Relations
Who will be handling Investor Relations in the near future?
Has a company been chosen to do investor relations for WINR in the USA and/or Europe? When
can we expect an announcement?
Subject: Supranet
What are the details of the relationship to Supranet? Is there a contract which details the amount
of revenue that we receive for our 19% ownership and how is it adjusted for increasing business?
Under fixed assets, Supranet is listed at $116,250. How is this amount determined?
If Supranet is sold do we share in the proceeds at the 19% level.?
Subject: Miscellaneous Question & Comments
What plans do you have for expanding the e-commerce side of the business?
Recently, both you & your father registered to sell some of your stock. Has any of this stock been
sold as of this date?
Is the relationship with Winner.CH going to expand? Has there been any feedback, positive or
negative.
Will Winner disclose to their shareholders the transcript of the shareholder meeting last year?
Earlier in the year there was a business plan implemented, is that plan still in effect or will there be
a revised one developed?
In the last nine months Winners has increased outstanding shares from 15.9 mil. to 20.9 mil. While
some of these shares go for services rendered, the majority have gone for private placement or
general funding. All companies that I am familiar with issue press releases when they seek
additional funding. We choose not to issue Press Releases , Please Explain.
While the 10Q lists no law suits pending, there were evidently subpoenas issued to identify certain
posters on Message Boards. What has been achieved with this and have you been successful in
your objective?
Why has Winner apparently not accomplished any goals outlined from last year’s shareholder
meeting?
Do you honestly feel that some business has been lost as a result of the complete mishandling of the
filing and relisting process, and do you feel that the “backdoor” registration was the correct
course to take knowing what you now know?
Is Winner funded properly to remain in business and what is Winners short term business going to
look like? |
