"I think IDCC went out of their way to avoid 5% ownership. I guess they will not be buying more equity soon."
Unbelievable. For once Johnnie and I are in agreement, at least on the 5% part. And I don't blame IDCC for not wanting to deal with the reporting. But I do challenge Johnnie to find any other deal IDCC has done where they purchased equity in a company. And the writing is so on the wall, but Johnnie refuses to see. NFC+Fingerprint biometrics+Cloud. That's what IDCC sees and what they think they can sell big-time - otherwise why mess with this? No, for Johnnie that's an impossibility. Maybe because if he allowed that, he'd have to admit that BIO-key is in fact capable of a very serious and long-term move.
And kudos to the CEO for recognizing his marketing and sales limitations and being humble enough to admit it, and yet still working and struggling and finding a great solution. Yeah, he's tried a couple times before and you can say he misfired on SIC (although not costly at all - except for maybe the insider shares they bought in their excitement) and maybe even another time or two, but he kept working it, and he found an incredibly strategic partner and pulled off a deal. And have no doubt, the only reason folks can still find an audience on this board and can complain about this company and the CEO is because the CEO stuck around and has kept this company here. Had he decided to throw in the towel, all these complaining investors would have seen their shares go to par value - $0.0001 cents per share, and Johnny would have got his long-time wish of bankruptcy.
And now the stock is up 3X and the dynamic duo of Johnboy/Elite are suddenly interested and posting again. After 10 years and BIO-key being one of the few public biometric companies left standing, and yes this is still a risky stock, but these two yet refuse to admit that the persistance of this management and technical crew have pushed this company to the brink of success.
And LOL out load even harder, Johnnie is scared to death that BIO-key will lose all based on a $400K note due in 2 years when IDCC turns ruthless and wants their money back. Yet ON THE FIRST DAY the deal was announced and even as of today, IDCC is in the money to the tune of $0.058 X 4M = $232,000. They've already made nearly half their note back! In just a week or two. If they can make BIO-key successful they stand to gain much much more than they ever could forcing liquidation to get their measly $500K back. And when a company knows they are going to make another company wildly successful through lots of business - that's when they buy equity. The money they spend on the product, they make back in spades in equity. That's just Econ 1A.
Oh, but we have Elite's spinny analysis that's like reading a Johnnie-trained hack:
"These Johnny [how's that for irony? - Ed.] come lately "investors' Just bought 1 Million shares of stock with a current PPS of 16 cents for 10 cent each...Hmmmm So they paid less than $1MM for $1.6MM worth of stock? Then, they "loan" $500K to BKYI which is secured by "all of the tangible and intangible assets of the Company"."
1 Million shares [wrong amount by a factor of 4] X $0.16 = $160,000, not $1.6MM [10X wrong]. But this explains why he always thought he was doing so well on Cogent!
Johnnie has made it sound like if a default occurs on a $500K note that IDCC ends up with the whole company. Hogwash. They just get paid first. The rest is split among the common shareholders. IDCC basically replaced Colatosti, so no difference there. Looking forward to Johnnie's prediction for the 4Q or whether there's been any additional collection on the backlog. I must admit, the spins he comes up with never cease to amaze and amuse me.