Internet business is becoming more and more about providing experiences, so much that one wonders who will be experiencing the glorious entertainment, information and branding when a new player pops up on the scene. With just a few online giants taking in most of users' time on the Net, Augme Technologies Inc. (OTC:AUGT, AUGT message board) is standing before a tough audience.
The group went under three different names in the last few years, Modavox, Inc., InnerSpace Corp. and SurfNet Media Group, Inc., and in its latest incarnation was burning cash, although it did reach a narrower loss compared to financial 2011. Here is a quick breakdown of the company's financials:
•$11.4 million in cash as of February 2011
•$2.29 million quarterly loss
•$82 million accumulated deficit
•$475 thousand in cash as of August 2012
The whole media marketing hype is propped up by talk of hitching a ride on a contract with Microsoft Inc. However, a "contract with Microsoft" is a widely abused term, painting minor collaborations or usage of the giant's platforms as exclusive partnerships.
Augme Technologies does not miss to talk about its technological patents in media marketing, as it did under its other names. However, in a rapidly changing online landscape a way of doing things may lack value if it fails to attract loyal users, and fads abound online.
The company is currently in between directors, after CEO Thomas DeLuca resigned, with a severance package of about $200,000 dollars, both as compensation and to cover incurred living expenses in New York. Augme Technologies operates with interim CEO Robert F. Hussey.
At the beginning of October, the company made a secondary public offering of shares at 0.80 cents and 5-year warrants to purchase more than 2 million shares at a little below a dollar. The current price of the company is below the public offering price, but in the past it has inched up to $4.75. Only the future will show if Augme Technologies can monetize its good ideas.
I was looking for a reason to disagree (because I'm sick of people only listening to positive articles), but this does seem like a trashy article. It's not even accurate regarding Tom DeLuca, etc. I think it was thrown together quickly with some kind of negative intention.