BOILER ROOM STOCK XVARIANT STATES FUTURE RELYS ON UNLICENSED OFFSHORE BOILER ROOMS TO SELL COMPANIES STOCK. ATTENTION VICTIMS, firstswissag.com and carltoncm.com await your calls:
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Xvariant a/k/a Real Estate Federation
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XVARIANT INC 10QSB Feb 13 2003
Plan of Operation
The Company targets the top 500 real estate brokerage firms in the United States, and actively undertakes efforts to sell the Company's products and services to such firms, as a means of attempting to secure a larger share of the real estate service industry market in the United States. The Company will undertake active efforts to enter into contracts with the larger real estate brokers in each of these market areas.
The Company's plan of operation continues to depend on its ability to raise additional capital, of which there can be no assurance. The Company is a party to subscription agreements for the sale of its restricted common stock totaling $2,500,000. Through December 31, 2002, the Company has received approximately $2,300,000 under the subscription agreements, but the funding source is under no obligation to continue making capital investments in the Company. The Company has used, and will continue to use, these funds to pay general and administrative expenses, and to develop its marketing plan, which includes participation in trade shows and direct marketing as well as traveling to meet one-on-one with real estate brokers. Although additional funding may be terminated at any time, the Company currently believes that funding will continue until the subscription agreement is completed. At the time that the funding is completed, if the Company has not achieved a breakeven status, the Company will begin a program of cost reduction and seek additional investment capital to cover any cost shortfall. It is anticipated that cost reductions and additional investment, if received, will cover the Company's working capital needs over the next twelve months.
The Company originally developed technology designed to convert traffic on real estate brokerages' web sites into leads by capturing vital prospect information and delivering it to brokerages for follow up. It was the intent that the brokerage firms would obtain greater value from their sites because of referrals generated through the Company's system. The Company was to share in the referral fees so generated. In practice, the referral fee model has not proved to be viable.
However, what has proven to be more valuable in the Company system has been the ability of the technology and the Web presentation to capture valuable information concerning house buying prospects. The Company has added customer service representatives who are charged with the responsibility of contacting all those people visiting a client web site and qualifying the prospect's present intent to engage in a real estate transaction. If the prospect is deemed to be an "imminent" prospect, the brokerage is contacted and given the "hot" lead to be presented to an agent for follow up. This service of qualifying prospect leads and presenting to a customer is currently being sold by the Company under the brand name of LEADMAXX. The Company is charging its clients a monthly recurring service fee. To date, there are 15 brokerage customers that have engaged the Company to provide the lead generation services, which generate approximately $20,000 per month in service revenue.
The Company determined that it needed to offer additional services to its customers and to prospective customers in order to attract a larger customer base. The Company, in the past year, acquired the product offering of Bid Trac, Inc., and acquired 360House.com, a provider of virtual tour services. The Bid Trac services have been largely converted to LeadMaxx, and the combined offerings of lead generation and a virtual tour capability has increased the Company's exposure in the real estate industry and greatly increased the Company's revenues. The virtual tour services are marketed by the Company as TOURMAXX. Currently, the sales presentations made by the Company consist of the bundled services of the LeadMaxx and TourMaxx services. Revenue from the TourMaxx services constituted approximately 78% of the total revenue of the Company for the quarter ended December 31, 2002. The Company intends to continue to search for complementary services to offer to its customers and, if acquired, they will also be included in the bundle of services offered to Company customers.
In addition to its virtual tours business for the residential real estate market, 360House provides digital 360 degree and still photography of the exterior and interior of commercial properties and provides a unique service for the construction industry under the tradename "Build Maxx" and "Photophase". Although in excess of 90% of the Company's revenues are derived from the residential real estate business, other potential market segments, such as the building industry, are not being serviced by competitors, and the Company has targeted the commercial real estate industry and the construction industry for active marketing.
360House also allows agents or brokerages to print property flyers with all of the listing information and photos of the house and its rooms from the Company website. On today's sophisticated color printers the resulting product looks professionally printed at a fraction of the cost of traditional printing media. The website also furnishes detailed statistical information concerning the number of website visits by potential purchasers and helps the agent to gauge the effectiveness of its advertising program. For the most recently ended quarter, approximately 75% of the Company's revenues were generated from sales of virtual tours and related products.
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The operating plan of the Company going forward is to brand all of its products under a common brand and sell the Company's products as a single, unified product offering. Efforts have been undertaken to present a bundled service offering to existing customers, in an attempt to increase revenues from existing customers, as well as presenting the bundle of services to all prospective customers.
Results of Operations for the three months ended December 31, 2002 and December 31, 2001 |
