Anyway, moving right along, ZIXI's 10-K is out for public consumption.
One item that caught my eye was the lease attached at the bottom of the filing. A lease for Zixit's OLD headquarters in the Galleria Tower. Apparently that lease remains binding through next year, even though Zixit certainly does not now need, nor may have ever needed, to maintain two high-rise office locations in Dallas.
Thus Zixit is saddled with upwards of $50K a month in needless cash burn, but more significant is the implication behind the circumstances of Zixit's relocation. Seven-Eleven, primary occupant of the building Zixit is now headquartered in, was announced as having adopted ZixMail at just about the same time as Zixit's relocation.
Clearly this did not seem like a coincidence at the time, but it seemed that it could have been explained away as a benign cost-reduction maneuver by Zixit, getting a break on the rent at their new location, in exchange for providing 7-11 with ZixMail services.
But now we see that it was not a cost-reduction move at all. Indeed, it was a deliberate additional expense, made for no other fathomable reason than to secure an endorsement from a nationally recognized corporate name.
To put it bluntly, Zixit out-and-out bought 7-11's endorsement of ZixMail. There seems no other possible conclusion. |
