Hello All,
I will try to make myself available to talk on the SI line around 20:00 PST (8:00 P.M PST)
tomorrow 8-13-98 to answer any questions I can. I have been getting mail from all over wanting to now what is going on. I will give a quick statement of who, what and where so we don't have to go over new ground. I will be getting on a plane soon but will get this letter off before I get
airborne.
I entered TMM about 18 months ago because some SI people and some non SI people .
The non-SI people represent about 18-20 percent ( this could be higher as some have
told me they were hedging there bet's at 1.X cents.) based on the same information I share
with SI members. I started this company in 1989 with Taylor Kramer, Dan Shields and
myself. We put forth a plan to build software only video. We had the goal from the original
investors to get a CD/ROM done using our technology, build a system for resale and get some
big time users to use it and get a telecommunication company to validate and use the technology.
This was a goal set out after by three people. What did we accomplish? We got Paramount to
use the technology on there premiere product "Star Trek Next Generation' CD/ROM ( the highest budget CD/ROM to date. We got Spectrum Holobyte one of the largest computer game
manufactures to buy on of our TMM producer stations so they could convert the Video themselves, as well as the U.S. Government to validate the technology in both the white and black worlds. We also sold some 20 other units that have been used on some 100 + CD/ROM titles. We went to MCI and spent months going up level by level all the way to the presidents office in Washington D.C. Drafted a document to have placed TMM in a group with MCI paying for and having exclusive use of a product that would be built for MCI using ISI fractal code. (Why was TMM in this group ? Because we did motion fractals better than ISI and could make great user interfaces and were not arrogant like some Dr's.) This was all done by November 1994. Not bad for three guys that started the company four years earlier in a garage to a market cap of 140+ million dollars. So what happened ? A group that was holding a note on TMM had tried to get the management group(TSimpson, D Shields and T. Kramer) to agree to let a note go into default that was over due at that time. We fought it and agreed that the note would be taken down by our share of the consortium money payments. We thought that every thing was ok and broke for Xmas/New Year break (or first real days off in 2 years.) While I was at a Dr.'s Office, waiting forever, I happened to pick up the classified adds for something to read and lo and behold I see and announcement that TMM a Thousand Oaks Company, is in default of a loan and will have a sell of assets on January 2, 1995. We found this very interesting as this was news to us. There plan was to B.K. the company and wipe out all the shareholders and take it for themselves. We had 2 working days to file for protection against acceleration. This ended
up with the management giving up 2/3 of there share to keep all whole. The shareholders decided to put Peter Olsons crew in-charge of the company over the objections of the founders. They then ran the founders out of the company and destroyed everything. After Olson crew spent all the money and changed the focus of the company it was left in the hands of The Chairman of the board. He hired Mr. Fernandez to try to make heads or tails of the mess that Olsen left. When it came apparent that Olsen and Danlot had broken all ties with the system that was in place, I was asked to come in and help. After seeing what was left, our first priority was to get business back into TMM but this keep running into roadblocks because nobody wanted to do business with a company that was still in B.K. court. So we then undertook the enormous task of trying to settle all the claims with no money or legal help. At this point we had to make a commitment of our own cash and help from Mike Fernandez's legal friends to try to pull this off EVERYBODY we went to said there is no way you can do it. We did. We are now in the process of re-building our relationship with old customers find some strategic alliances and
make the company attractive to somebody who could use 12 million dollars in loss carried forward that has synergy with our group. We have identified and started this process, we have
commitment from two very big customers to preform work for if we can set-up the facilities.
I would love to tell all more about what is going on right now but I `m under non-discloser until
such time as the deals are done. I can say this is a multi-company agreement so it is taking longer than all would like but based on where we all were 3 months ago, I know that a majority of the share holders are very happy( because they know where this could have been, and our very supportive of the efforts we are making). So the new comers know, all the money and time over the last 18 months has not been your money, or time it has been our money and time that has not been reimbursed in anyway. I personally do this out of love for my friend/brother/partner who has been a casualty of the takeover. (A&E is doing a one hour story about the takeover of TMM on 8-20-98 at 6:00 PST) and some of the original shareholders who account for 30-35 percent of TMM. I also do it for you, as shareholders I just hope you remember me when I pull this thing off and I will pull it off or die trying. I do realize that some people are looking for short term fixes but that will not help the long term health of the company. The 15C-211 and 10Q fillings that are underway and the sales for our first operating quarter will set the stock price. I hope this brings all up to speed on the who, what and where. I have tried to answer as
many questions as I can in this short history. Please think about your questions for tomorrow
and I will handle them the best I can and ;
I remain Sincerely yours,
Thomas Simpson
P.S. Please excuse any typos as I have to run to make the plane. |
