There is a white elephant in the living room and no one wants to respond??
OK- Can someone give us a link to verify ITL is a Chinese company. Can't find anything on Eastlake either. C'mon- someone prove me wrong!!
1740 N Delilah St Ste 101
Corona, California 92879-1893
ITL Efficient Energy Corporation is a small, fairly new organization in the business services industry located in Corona, CA. It opened its doors in 2012 and now has an estimated $140,000 in yearly revenue and approximately 2 employees.
This call is pathetic. I predict bankruptcy.
a real smoking gun.
That deflection is a sure sign of desperation
They were carefully crafted questions and answers supplied buy VRX- It was obvious in listening to the call.
What a freaking joke.
go to their website and click on investor relations. There is a link there. I looked at the pre-arranged presentation- what a crock! They have listed a bunch of questions with answers already supplied. If they don't take questions from analysts or investors that is a sure sign they are hiding some things.
We can speculate based upon the Akyumen deal. Akyumen was a company that was in the process of commercializing their new cell phone technology with a novel and innovative HD video projection system that would project an HD 10 X 10 video on any flat surface. Before they decided to redesign their phone they had several contracts in place with 2 major Asian cell phone carriers. If I remember correctly, the cell phone carriers committed to purchase 10 Million phones. MAXD has a contract with them for a $2.50 licensing fee per phone sold. This would have equivocated to 25 million in annual earnings. Unfortunately this deal is still on hold, however we can use this model to speculate the value of the Luna and Santok contracts.
A fellow investor got a hold of Luna management and asked which carriers the Luna phone will be sold through and they told him Sprint and Verizon. This is new technology with unique features and a great price point of only $399 per phone. Being that we know the royalty rate for the Akyumen deal, we can conservatively speculate the royalty rate/license fee for the Luna phone should be at least $1.50 per phone. I will present two different scenarios and what the potential valuation of MAXD will be based upon the value of each scenario.
Scenario #1: Let's say both Sprint and Verizon ordered 3 million phones each for a total 6 million phones. At a royalty rate of $1.50, this would equal a total of 9 million in annual revenue to MAXD for the next 3 years. (This assumes that the phone will do well and carriers will continue to order. Remember, other carriers will take on the phone if the market responds well to the technology). If we take $9,000,000 and divide it into the number of outstanding shares which is 450,000,000, the earnings per share is $0.02. With a modest P/E of 10, MAXD's price per share would be $0.20! (Just from this single contract)
Scenario #2: If Sprint and Verizon order a total of 10 million phone, using a royalty rate again of $1.50, this would make the annual revenue equal to $15,000,000. Again dividing this into the number of outstanding shares, we arrive at an earnings per share value of $0.033. Again with a modest P/E of 10, the share price would be $0.33 per share.
This model obviously doesn't include the Santok deal which may be a similar sized deal. It also doesn't include the speculative value of MAXD's potential of settling with Google and Netflix who are both facing a PERMANENT injunction in Germany (court dates are December 8th and December 18th, respectively). I do feel strongly that as we approach the the December court dates, that Google and Netflix will come to the table with a settlement offer. They have way too much to lose. A loss for both in the German courts means they will have to remove the VSL video codec (for a minimum of two years), which will time warp both companies back to pre-2009 video streaming technology, meaning incessant buffering, stalling, and jittery video experience. Google doesn't want this because of the advertising revenue that comes from Youtube. Netflix definitely doesn't want this because they have reached their market potential in the US and Europe is their largest growth market.
Also remember if Google receives the permanent injunction, the Android operating system will not be allowed to be sold in Germany because it includes the VSL video codec. Google freely licenses the Android OS to all cell phone manufacturers that utilizes this as their OS. This means it will force every single one of these companies to come to the table and license the VSL technology from MAXD. Also keep in mind that in the Mannheim court in Germany last November, MAXD asked for a preliminary injunction against Google and received a preliminary injunction is record time. The judge reviewed the evidence for only an hour and half and came to a decision against Google. Agents of the court subsequently went to Europes equivalent to our Computer Electronics Show and confiscated cell phones from two Chinese Phone manufacturers that utilize the Android operating system.
Bottom line. At 3 cents a share, with established lines of revenue, and impending success in Germany, this stock is a steal.
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Behind the books: What's really going on at Valeant?
By Alex Rosenberg
17 hours ago
Behind the books: What's really going on at Valeant?
Getty Images. Is Valeant taking legal action against itself? The answer may come down to an odd classification known as the "variable interest entity."
Shares of pharmaceutical company Valeant (Toronto Stock Exchange: VRX-CA) crashed after short seller Citron Research alleged that Valeant has created a network of pharmacies to generate phantom sales. Citron notes the oddity of Valeant's owning an option to acquire Philidor Rx Services, which has a relationship with R&O Pharmacy, which apparently owes Valeant money.
1. Valeant Pharmaceuticals' Philidor Rx Unit Says It Has A Right To Buy R&O Pharmacy Forbes
2. Valeant shares recoup losses after company rejects short seller report MarketWatch
3. Pershing Square's Bill Ackman Buys Two Million Valeant Pharmaceuticals Shares Amid Plunge Forbes
4. Valeant shares plunge on short-seller scrutiny of pharmacy revenue Reuters
5. Valeant Pharmaceuticals Rebuts Short Seller Claims Of Enron-Like Sham Transactions Forbes
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Citron further alleged that Philidor and R&O are the same company, which leads to Citron's allegations that the sales Valeant has already booked through R&O (previously recognized as revenue and now sitting in Valeant's balance sheet as money set to be received) appear to be phony. Valeant shot down the claims in a press release, writing that R&O is in fact an "other pharmacy" than Philidor.
So who's right? Are Philidor and R&O the same company? Are Valeant and Philidor the same company? Are Valeant and R&O the same company?
In the case, the answer may come down to semantics, due to the relatively new corporate structure known as the variable interest entity.
Read More Bill Ackman: I bought 2M shares of Valeant today; I believe in the company
A variable interest entity (or VIE) is a company with which the reporting company is in some way entangled. This designation, created in the wake of the Enron collapse, means something akin to "ownership-light"; a company that holds a VIE generally enjoys exposure only to the upside of its results, or only to its downside, or it directs the actions of the company. (This explains the name; the company's interest in its VIE may depend on that company's results, thus making it variable.)
The reason that Valeant provides for considering Philidor to be a VIE, and consolidates Philidor's results, is that its option to buy the company exposes it to Philidor's potential upside.
This is where the second layer comes in — the relationship between Philidor and R&O.
In a statement the company released late Wednesday, Philidor substantially echoed what Valeant said about the relationship among the two, writing that "Philidor does not currently have a direct equity ownership in R&O Pharmacy or the affiliated pharmacy."
But then things get complicated.
Philidor "does have a contractual right to acquire the pharmacies now or in the future subject to regulatory approval," Philidor adds.
Since Valeant's right to buy Philidor lead it to consolidate Philidor's results, does Philidor's right to buy R&O thus lead Philidor to consolidate R&O's results? Does Valeant then consequently consolidate R&O's results, such that all three are the same company from the perspective of an investor reading Valeant's financial statements?
Unfortunately, that's not entirely clear. Representatives for Philidor and Valeant did not respond to emails seeking an answer to that question. And while financial notes might be expected to shed some light, Valeant's 2014 annual report does not even mention Philidor, much less Philidor's treatment of R&O.
To be sure, just because a company has an option to buy a separate company, that does not automatically mean it must be considered a VIE and consolidated as such. Charles Mulford, professor of accounting at Georgia Tech's Scheller College of Business, told CNBC that based on the public facts, "I can't call it; there's not enough information for me to say definitively yes or definitively no."
But if the option effectively gives Philidor exposure to R&O's upside, and there are certain other factors leading to an unusually close relationship between the two companies (such as cash flow going from R&O to Philidor, or Philidor control over R&O's actions) then R&O would indeed need to be considered a VIE of Philidor. For instance, in PwC's guide to this somewhat fuzzy designation, the accounting house writes that if "the reporting entity holds a non-reciprocal, fixed-price or 'in the money' call option on the other investors' equity investments" in a company, then it is a "strong indicator" that this company must be treated as a VIE.
We already know that Valeant consolidates Philidor's results. If Philidor consolidates R&O's results in turn, then all the results will wind up on the same balance sheets and income statements — Valeant's.
Even if this is the case, it would not directly indicate any type of fraud. However, it would make Valeant's legal action against R&O pretty strange. A company may sue its own VIE, and it is not clear that Valeant directs the actions of Philidor or that Philidor directs the actions of R&O (though it is quite possible). But Valeant is claiming that "R&O sold a substantial amount of Valeant product" and "is improperly holding significant amounts it received from payers."
If R&O's results are consolidated with Valeant's, and the two parties agree that the sales events happened as Valeant describes, then the revenue that Valeant logged due to R&O sales is currently being counted as (Valeant's) accounts receivable, (R&O's) cash, and (R&O's) accounts payable on the combined balance sheet. That means that if Valeant's action against R&O is successful, the end result is merely that Valeant will be able pay down its own accounts receivable with its own accounts payable, by reclassifying certain cash as belonging to Valeant instead of R&O.
On the other hand, if R&O doesn't end up paying Valeant back, then Valeant will be forced to write down its receivables in order to reverse the sale, thus booking a net loss equal to the cost of the goods sold.
Now, the $69 million worth of drugs that Valeant apparently shipped to R&O and for which Valeant is asking for payment is not particularly material for a company that reported nearly $5 billion in revenue in the first half of the year. But for one expert, the small size actually raises alarm bells.
This could be "an erroneous one-off set of transactions, due to an IT system glitch or accounting miscommunication," Victoria Dickinson, a professor at the University of Mississippi's Patterson School of Accountancy, wrote to CNBC. "But if that was the case, you'd think they would have to have some other recourse other than to work through their general counsel (like refuse to fill R&O's inventory orders until they pay up)."
The fact that Valeant sees fit to take legal action over such a small amount could suggest that this is merely the "tip of the iceberg," Dickinson said.
If nothing else, this whole slippery and lightly disclosed situation is flabbergasting; in a Thursday downgrade note, BMO wrote that "while we do not have all the pieces to this puzzle yet, we find Valeant's apparent control over Philidor, and Philidor's alleged activities with other pharmacies such as R&O as aggressive, unusual and questionable."
This fog of confusion stems directly from Valeant's lack of disclosure.
When a company consolidated a VIE on its balance sheet, "generally you need to disclose enough information that a reader can understand the nature of the relationship, so you can convey what the financial impact might be," Travis Drouin, lead partner for audit at Moody, Famiglietti & Andronico, told CNBC.
To date, Valeant appears to have made no attempt to do that.
Hopefully that will change on Monday morning, when Valeant is set to host a conference call "to lay out the facts including allegations made against our company regarding our relationship with Philidor and R&O, our accounting practices, and channel stuffing that contain numerous errors, unsupported speculation and incorrect interpretations of facts and circumstances to the detriment of the shareholders of the Company."
Management certainly has its fair share of critical questions to answer.
Max Sound Corporation (MAXD) has paid the German Court filing fees to continue their pursuit for justice against the internet giant.
MAXD is seeking a permanent injunction against Google and its subsidiaries. The District Court of Mannheim has scheduled the final hearing in the video streaming patent case against Google and YouTube for December 8, 2015. Read More
MAX-D's CEO John Blaisure states; "The goal is to monetize our worldwide rights to Optimized Video Data transmission, starting with Google and then Netflix through either successful litigation or licensing. Since, there are more than 1000 top companies globally using the technology to stream video 33 times faster and more cost efficiently without a license, our success here could bring rapid and major value to the MAXD stock."
Meet The Inventor
Lloyd Trammell was voted by his peers, at Electronic Musician Magazine, as one the worlds top four audio engineers and sound-designers. Mr. Trammell was instrumental in helping create MIDI, the Musical Instrument Digital Interface an electronic musical instrument industry specification that enables a wide variety of digital musical instruments, computers and other related devices to connect and communicate with each other. In the mid-eighties, he designed one of the first working surround sound processors, which was sold to Hughes Aircraft and was later spun off to become SRS (NASDAQ:SRSL).
Throughout his vast career, Mr. Trammell knew that he needed to achieve true audio greatness! He believed that the world was not hearing audio the way nature intended it to be heard. Out of his quest for true audio perfection – MAX·D HD AUDIO was born.
“Nothing sounds as good as MAX·D - Period!!”
Meet The CEO
John Blaisure is the President and Chief Executive officer of Max Sound Corporation. Prior to joining Max Sound Corporation, Mr. Blaisure was the Founder, President, and CEO of Effective Network Systems (ENS). Effective Network Systems was a telephony software company that debuted at the Intel Technology Summit in 1999 as one of the top 40 telephony software companies in the world. Prior to his work at ENS, Mr. Blaisure was the creator of Fonz by the day stores, a cellular communication reseller and retailer in Dallas, Texas. The stores achieved great success and became a market leader throughout the Fort Worth area.
Mr. Blaisure brings over 20 years of experience in strategic planning and in the marketing of communication technologies from the ground floor up. It is because of this extensive resume that John has been able to envision MAX·D HD becoming the standard in audio technologies.
Meet The Chairman
Greg Halpern became an International Gold Medalist in Judo and an Author in the late 70’s, spending more than three decades since as a pioneer of innovative emerging inventions and technology transfers which he has played the critical role in bringing from conceptualization to reality and commercialization. During his 36-year career, Halpern has provided savvy management, small business infrastructure, significant funding and substantial intellectual capital to bring important and timely life-changing technologies to market through all phases of the commercialization process.
In the 80’s, Halpern was featured in Omni Science and Venture Magazine among many other media features for pioneering Computer Animated Imaging and Electronic Anesthesia to which he received various patents and trademarks and also appeared on the Oprah show.
In the 90’s Halpern developed early search engine algorithm software and successfully launched the first true crowd funding - raising three million dollars online in a week. The S.E.C. cleared offering was featured on CNN.
From 2000 to present, Halpern was the Principal owner of CGI Capital an NASD Member 5k Broker Dealer, the Chairman & CEO of Circle Group Holdings Inc. (AMEX: CXN) and Z-Trim Holdings Inc. (AMEX: ZTM) where he designed and built a green plant to produce a USDA food ingredient breakthrough and is the current Chairman of the high definition audio company Max Sound Corp. (OTCBB: MAXD). Halpern also developed Fairplay, a DRM solution component of Veridisc, which was sold to Apple as a piece of their media ecosystem.
For his diverse efforts, Halpern and his innovations have been featured on most major TV and radio networks and in many major publications including books by celebrities such as Dr. Oz. Famous leaders in several industries have endorsed and worked with Halpern and his innovative ventures including Steve Forbes, Al Gore, Wes Clark, Steadman Graham, George Foreman, Larry King, Mick Fleetwood, Pitbull, SBA Chief Hector Barreto, Congressman Michael Oxley and Congresswoman Sue Kelly who brought him to congress to testify on ways to improve small business in America.
Halpern has worked extensively with agencies such as the FDA, USDA, USPTO, FCC, DOE, DOD & SEC and is an assigned inventor on 31 patents issued or pending.
On the side, Halpern is the backer for his daughter's band KI and finalizing books and movies for his own story 13 Lives.
Excerpts from the January 2015 CEO letter to shareholders:
* In the past year, it has become clear which markets will give us the fastest acceptance and the quickest realization of our collective dreams, consumer adoption, brand awareness and financial success. Every day my team and I are focused on creating revenue events with big name customers and their associated partners. As we pursue and conquer these opportunities, it will be clear to our shareholders, manufacturers and content providers -- that consumers prefer the audio perfection created by MAX-D HD!
*Ask yourself -- "What would Max Sound's value be if consumers all over the world realized how MAX-D HD provides a far better audio experience?" You probably have an idea what that value could be, which is probably why you first invested in Max Sound Corporation. We have an idea too, which is why we keep investing our time, energy and financial resources (over seven figures has already been invested by our founders). I have personally invested four months of my salary purchasing MAXD stock in the open market, because I strongly feel our shares are severely undervalued. Our goal is that everyone will know about MAX-D HD and everyone will know about MAX-D stock. Right now the investor audience is small, but as you'll learn below, we think we now have the necessary elements for our shareholder base to grow substantially in 2015.
*Our sales and marketing teams are laser focused on penetrating the smart device industry, content streaming industry, auto industry and the television and film industry (post production audio for movie companies). The development team has concentrated on enhancing the existing MAX-D HD API, while developing additional API interfaces. The MAX-D API can be deployed across all streaming platforms along with most audio/video web based services. MAX-D HD can now reside in audio hardware (speakers and audio receivers -- such as car smart head units).
* One accomplishment in Q4 of 2014 was the completion of testing for Industry MAX-D HD Audio Boxes. I'll talk more about that below.
* We've also completed the initial development of the MAX-D Accurate Voice. Not only does it dramatically improve voice quality on cellular devices, it also has the ability to improve voice recognition in homes smart devices and auto infotainment systems.
*To hear for yourself play this link on a computer with decent speakers
*We now have a MAX-D API (Application Programming Interface) that allows the MAX-D HD proprietary algorithm and coding to be inserted into applications such as streaming services, automotive head units, DSP memory in speakers, developer platforms and web-based applications. We currently have our API in what appears to be the final phase of testing with brand leaders in auto manufacturing, chip sets, gaming consoles and streaming content. Each of these industry leaders has their own custom version of the Android platform as well as other hybrid platforms. Our engineering and programming teams are working hand-in-hand to accomplish a successful integration of MAX-D HD for all platforms.
Download Investor Presentation Q2 2015 here
Become an Investor VIP and find out everything you want to know about MAX-D HD here
Did it again just a minute ago.