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Technology Stocks : NEOM -- Ignore unavailable to you. Want to Upgrade?

To: levy who wrote (113)	10/23/2000 12:10:22 PM
From: Pareto	Respond to of 143

levy, if you define "levycodes" as a standard, you may get a patent as well. Then you only have to get it used globally by others and charge a minimal fee. some questions to you: - why DC did not buy Neom when its market cap was only 80M last week, buy did they sign a agreement to purchase 100M of license rights? - The deal says: "NeoMedia has also issued Digital:Convergence warrants to purchase 1.4 Million shares of NeoMedia stock." That would be 10% of outstanding stock. Based on last weeks share price that would be worth around 7 million dollars. I bet that the hard cash amount for the first two years is around that figure. In that case it is a swap of interests. My question is, if you sum both sides of the deal, what is the net value of the deal and who is getting the benefits? Therefor you need to know the details and the time conditions of the deal. Hard cash now is much more valuable than a general revenue sharing agreement 10 years from now. It seems to me that it is an agreement to get volume. - the license fees for the third quarter were only 117K, it may not even be related to paperclick. siliconinvestor.com "Net sales were $4.0 million, compared to $5.0 million for the same quarter of 1999. NeoMedia reported a net loss of $3.6 million." The cash position end of September was $ 3.403 So this quarter we will know the future of Neomedia. The license fee has to increase. If not, they will be out of cash end of the year. Maybe the DC deal is a form of selling part of the company to get new cash. What do you think?