Well, its official, the 10-Q made its debut yesterday, and many were disappointed, surprised, dismayed, and yes… angry.
There was some confusion over the accounting procedures used to reconcile the divestiture of Punch (as explained here), in that there was a loss of 1.57 million showing on the bottom line. However, one of the largest concerns was the recording of zero revenue. Almost everyone was shocked that IC Punch Media, Inc had no reported revenue during that time period. There was initial shock and outrage expressed on the message boards surrounding the disbelief that the company had no revenue during that time, when they knew (or thought they knew) that the company was broadcasting, and selling ad space. Early the next morning the CEO explained in this post and here and here. that the revenues stayed with Punch as part of the divestiture.
As the questions began to fly from the upset investors on Investors Hangout shortly after the release of the report, the CEO became combative and what some said was dismissive of their questions, represented in posts here, and here, and here. Needless to say, angry and insulted investors fired back, and the situation grew more combative as time moved on.
Then, in the wee hours of the following morning (5/22/13) the CEO reappeared on the board and began to answer questions. Most board members of course had left the board by that time, however there were still some lingering questions that he did answer. One recurring question theme was related to the divestiture, which the CEO elaborated on in this post. We think this is a significant revelation. In the post the CEO not only explains that the company did not lose anything in the Punch divestiture, but that there is a likelihood that Collins may owe IC Punch Media, Inc. the difference between the value paid in stock, and the value returned in stock. Now if most accounts of the Collins financial picture are anywhere near accurate, Collins may be what they call Judgment Proof, in that even if it is determined he owes something, he has no funds to pay. The CEO did address that situation somewhat in this post here.
So… where does that leave us now, today ??? Well, here’s the good news… there was a Press Release around noon today announcing some new appointments to the company’s management. See the release here. This is exciting news. If you read through the release, you will notice a common thread in all the appointments… the ability (and previous experience) to raise large sums of capital to finance ongoing and new initiatives. This news appears to be well received by the investing community, as the stock’s PPS took a real deep dive during the opening few hours, however as we draft this post the stock has recovered almost all of the initial loss of this morning. We closed yesterday at .0032, gaped down to open at .0026, and are currently sitting at .0029, with 2 more hours of trading left today. Hopefully the PPS not only recovers, but starts a sustained climb up to the levels that are representative of the value of this company.
Stayed tuned folks… this thing may be down, but certainly not out ! The CEO stated we would be hearing many good things in the coming weeks, and if the initial indication of today’s announcement is any indication of what is to come… this will be an E-Ticket ride !