Company Information Corporate Name: MyECheck, Inc
Post# of 537
Company Information
Corporate Name: MyECheck, Inc.
State of Incorporation Wyoming
Main Office Address: 3941 Park Dr., Suite 20-179
El Dorado Hills, CA, 95762
Stock Exchange/Ticker OTC
ink “MYEC”
Transfer Agent: Signature Stock Transfer
FAQ
1) What is an accurate count on shares outstanding? What is the current float?
A) As of December 1, 2013, there are 3,612,470,000 shares issued and about 609,000,000 in the public float.
2) The MyECheck Founder & CEO, Ed Starrs holds 3,000,000,000 shares, about 79% of the issued and outstanding and 60% of the authorized, what are his intentions for these shares?
A) Mr. Starrs plans on holding his stock long term and has no plans to sell any stock. Mr. Starrs’ stock is “Restricted” and cannot be sold without an exemption from registration such as Rule 144. Rule 144 may permit Mr. Starrs to sell up to 1% of the issued and outstanding stock, or up to 36,124,700 shares within any three month period. If Mr. Starrs changes his plan and decides to sell stock, he would be limited to selling relatively small amounts of stock from time to time as permitted under an exemption to registration, and any such sales would be subject to disclosure through the OTC.
3) Why are there almost 5 billion shares authorized and 3.6 billion issued and outstanding, this seems like a lot of shares compared to other companies, does it pose any unique problems and is the Company considering restructuring its equity, would management retire their shares?
A) The current equity structure is the result of re-organizing the Company that enabled management to regain control of the Company and restart liquidity in the public market, and that process is still going on. The equity structure has served an important purpose for the Company and has proven to be the right structure during the past year. Currently there is no need, therefore no plan to restructure the Company equity. A reverse split at this time, for example, would cost shareholder value we believe and would give shareholders fewer shares at an inequitable value. We are however open to restructuring if and when we believe there is a viable reason to do so. It is very likely that equity restructuring will be considered in 2014. The idea that management would give away their ownership positions is unrealistic.
4) Are there any current plans to form an IR Department for MyECheck?
A) We will have internal Investor Relations when we are fully reporting on a more senior exchange, and we will likely use external Investor Relations services in the interim.
5) Is MyECheck still the fastest, safest and cheapest way to transfer money from any US bank account?
A) Yes, it’s the fastest, safest and lowest cost way to move money electronically in the United States. And, advances in banking industry infrastructure along with our own new developments will improve our capabilities and the services we provide.
6) Why do some brokers show a Chill on MyECheck’s stock, when other brokerages do not? Is there a way to get that fixed?
A) MyECheck is not currently DTC eligible and needs to have a DTCC member recommend us to become DTC eligible. When MyECheck re-domiciled from Nevada to Wyoming, a new CUSIP was issued to the Company stock and the old CUSIP was cancelled. DTCC tracks Issuers by CUSIP so they have no way of tracking MYEC, therefore cannot clear MYEC stock electronically through DTC. Some brokers can get around this manually and some can’t or won’t. We have been working with DTCC members on becoming DTC eligible in the very near future.
7) There was a PayPal Survey sent out showing MyECheck as an alternative. Do you have any knowledge of this? If so, can you comment on it?
A) We have had no contact with PayPal regarding this survey and had no role in it other than being listed as a payment services provider.
Instead of offering MyECheck branded services to PayPal users, a better application for PayPal would be to use our technology as the default bank account funding method instead of ACH, it would work with more PayPal user bank accounts, the funds would clear at least a day faster than they currently do, and it would be more secure with less failed and returned transactions therefore lower cost and much more efficient.
8) What happened to the stock issued for the debt June 15, 2015 of 400,000,000 shares?
A) The stock was issued for the conversion of convertible debt that was purchased by a third party investor. However subsequent to the issue, the investor failed to pay the debt as agreed so the stock was cancelled on the ledger of Company.
9) What were the negotiations that were made with creditors to eliminate $502,222 of debt? Was this debt cancelled because of an agreement to trade for MyECheck’s check processing services?
A) The majority of the debt eliminated was loans to the Company, the derivative liabilities created by the loans, and numerous small accounts payable bills from various service providers. The loan instruments were Convertible Notes and Debentures. We found investors to buy these notes from the note holders; the notes were converted into shares of MYEC and sold. Almost all of the stock in the public float was created this way. With the debt from the Convertible Debenture gone the derivatives liabilities are eliminated also. The smaller debt was negotiated on a case-by-case basis with each creditor with various resolutions, but none of the creditors would have brought much value as a customer. This conversion of debt into stock also restarted the market for MYEC stock.
10) Do you have an established timeframe for MyECheck’s financials to be audited? As it would create a wealth of investor confidence, both old and new investors.
A) We plan to start the process of filing audited financial reports and become fully reporting early in 2014, this will require our previous unaudited financials be audited also.
11) What is the approximate length of time for integration of a new client? (Best, worst case and factors involved)
A) It typically takes around a week or two for a nimble client to sign up and integrate from start to finish, however the technical integration part with us is quite easy and takes very little time once the documents have been read. Our services only require data that be sent to us in one of the secure specified formats, but depending on many factors such as the size of the client, their IT personnel and schedule, their website and shopping cart, applications, database, accounting system, fulfillment system and many factors beyond our control, it takes from 2 hours to several months.
12) How are fees and percentages with sub patent agreements determined? What is the range?
A) Licensing fees are determined by the forecast number of transactions and average transaction amount. Fees consist of an upfront licensing fee for a patent sub-license, an upfront fee for a software license if required, and an ongoing fee that is a percentage of transaction amount or a flat fee per transaction. This is typically quoted to the prospective licensee after we have reviewed their business and determined their processing volume – number and size of transactions. Because our fees are custom to each client, we do not publish our fees publically.
13) What are your immediate and future hiring plans and how do you expect this to affect your speed of growth?
A) We are hiring Senior Management now, they will in turn hire subordinates. It is essential for speedy growth. Our services and internal operations are fully automated and touch free so essentially require only monitoring. Our personnel growth will be in Sales & Marketing and IT and Development.
14) Considering that MyECheck is far superior to competition, what difficulties do you foresee going forward regarding widespread acceptance of your technology?
A) The biggest obstacle is the portion of the establishment banking industry that has vested interests in ACH and resists change out of fear. Once they inevitably and collectively agree to embrace fully electronic checks, the landscape will change very dramatically, very quickly, and for the better of the national payment system.
15) What is the nature of the patent licensing agreement between Ed Starrs (yourself) and MyECheck, Inc. (the company)?
A) The agreement is exclusive and royalty free for MyECheck, however Mr. Starrs has the right to re-negotiate the agreement at any point in the future although there are no plans for re-negotiation.
16) What factors make MyECheck money transfer more secure internationally? Are international payments currently available with MyECheck?
A) It’s sounds like just semantics, but MyECheck is not a Money Transfer Service, which requires special licenses and involves a high degree of risk. We do not transfer or process money at all, either domestically or internationally.
To clarify our service processes electronic check data on behalf of merchants, enabling fully electronic check payments to our merchants from US customers/payers. Money transfer services, like Western Union, are person to person long distance cash payments. One person pays cash on one end, the other person picks up cash at the other end.
Currently we do not offer international payments, and although we plan to add global payments in the future, it is currently not our focus.
17) MyECheck appears to work the same as Debit (in that it transfers money from checking accounts), but it is significantly cheaper and faster. Is the Debit card market one that you intend on pursuing? Is it possible to have a MyECheck ‘debit card’ which would then create a virtual check and be facilitated by your patented technology?
A) Debit card transactions are processed through the Visa/MC or ATM networks, with their fees, limitations and rules. MyECheck creates and processes checks just as if it was originally a paper check, but in essentially real time. This is dramatically different than debit card services. Our service provides access to every checking account in the US, not just those tied to a specific card network. The user doesn’t need a card or any hardware to pay using MyECheck, just a checking account.
We are targeting market share of the $44 Trillion check industry with a unique patented service, this industry has different customers and is a better fit for us than the $1 Trillion over saturated debit card industry.
However, a MyECheck customer or licensee hosting a virtual or mobile wallet with MyECheck as the account funding method could issue a debit card to draw or spend those funds in the wallet, but it is unlikely MyECheck will need to offer this type of payment service itself.
18) What factors affect true processing speed? Is it the same internationally? What is the longest amount of time it can take to process?
A) The primary factors that affect processing speed are user interface software/browser, network connectivity and latency. Response times are typically 1 to 3 seconds.
19) Do you anticipate uplisting in the near or long term? What obstacles do you see preventing possible uplisting?
A) We plan on moving up to more senior exchanges when we qualify, hopefully early in 2014. We don’t anticipate any specific obstacles at this stage and we are confident we can address any that may present.
20) In the past, MyECheck has a history of PRs regarding new clients and progress. What are your intentions of PR’s and updates going forward?
A) At this stage in the Company’s regrowth, the company is trying to develop long-term strong, service oriented business relationships with its clients. Previous press releases have resulted in clients being contacted multiple times by the general public to confirm the relationship, however this is inconsistent with the Company’s internal policies regarding customer service and retention, and may not be welcome by our clients. As a result, the Company has decided not to publically announce each new client. The Company will continue to make announcements regarding material events but will not identify clients by name at this stage unless requested by the client. We will likely announce clients of unusual significance, and may resume more frequent merchant announcements in the future.
21) Are the Corporate Merchant Solutions agreements still on track for implementation this year? If so, are these agreements still anticipated to bring in $250,000 per month gross revenue to MyECheck?
A) No, unfortunately Corporate Merchant Solutions is not on track for completion of implementation before the end of the year.
22) What is your strategy, near term, for signing new customers for the purpose of licensing and sub-licensing MyECheck’s patented technology? How do you see that strategy changing in the future to allow for accelerated growth? What level of growth do you foresee in the next 1, 2 & 5 years?
A) The short-term focus is on going live with a few large merchant services customers and licensees that can generate very large transaction volumes. Most of our sales leads come from resellers, and we are starting to build a sales organization to manage the resellers. We also have relationships with resellers that have yet to be engaged.
23) How do you plan to overcome obstacles, such as larger customers who are more hesitant of change, when offering MyECheck’s technology as a solution?
A) It depends on who has presented the obstacle and why, there’s potentially dozens of answers to this. One way is to point to one of their competitors or similar company that made the change, tell them why they changed and what competitive benefits they reaped. Fortunately we have processing history and some references.
24) To whom does MyECheck owe the remaining $302,000 shown as current liabilities on the balance sheet, as per the September 30, 2013 Quarterly Report?
A) It’s a combination of a Loan from 2009 (about $65k), Legal (about $110K), Accounting (about $30K), Developers (about $50k) and other professional services fees.
25) What is the exact nature of the operating expenses shown in the Quarterly Reports?
A) Development, hosting, office, transfer agent fees, and legal fee. The development money went to pay our outsourced developers, we lease hosting space for our production system at QTS Data Center in Sacramento, and we lease a small business office. The transfer agent fees and the legal fee are a necessary part of being a public company.
26) Has MyECheck Inc. hired a Director of Merchant Services? Who is Jim Gisler? (He claims to work for MyECheck Inc. on LinkedIn).
A) We do not have a Director of Merchant Services. Mr. Gisler was a former employee of MyECheck not currently employed with us since 2010, he was a great employee who left on friendly terms and we would hire him back, but we don’t need him right now.
27) MyECheck Inc. operates under the Check 21 Act in the United States. Are there similar laws in most other Countries, and could this be an issue for International expansion?
A) There are no similar laws in other countries yet, but it is likely in the future. In the meantime, the US market holds enormous potential measured in trillions of dollars. We do have an international strategy of partnering with international payments providers. We are reviewing international payments services providers for implementation in the second half of 2014. The proposed wholesale partnership would provide MyECheck as the US component of their international service, and we would add their global services to our payment platform, giving us immediate comprehensive global capabilities.
28) Does MyECheck Inc. plan on getting involved with Airlines, Online Gambling Sites, Brokerage Firms, Municipalities, and Payroll Processing Agencies?
A) Not Online Gambling until the legal climate clarifies, but all the others listed can benefit immediately from MyECheck and they are currently sales targets. We have previously successfully provided services to the State of California and other government entities, so government is a primary target for us.
29) What percentage of revenue is generated by the new IP Licensing Revenue Model? What percentage of the fees generated by licensees flow to MyECheck Inc.?
A) This is the first time revenue has been reported from licensing fees in the previous quarter, the percentages of revenue generated so far would not be a viable indicator of anything yet. We expect the majority of fees to be generated from licensing fees, ultimately. All fees generated by licensees flow to MyECheck.
30) Will MyECheck’s technology ever be used with mobile devices?
A) Yes, MyECheck technology has been used on mobile devices. As a back-end processor, our merchants have used a variety of applications and interfaces to collect the data they pass to us, including mobile apps. We expect mobile apps to be a common way merchants will use to collect payment data and/or payment authorizations from their customers. We are working on new technologies that further secure these types of transactions.
31) Why should online merchants choose to use us (MyECheck) over the competition?
A) MyECheck works with more of their customers, they get paid faster, it costs them less money, payments are more likely to be successful and less likely to be reversed, and payments can be guaranteed.
The specific comparative benefits depend on the online merchant and what competition you are referring to. Usually a business prospect is analyzed and a detailed custom proposal is prepared that highlights the specific benefits and cost savings for that unique client.
Numerous sources of information highlight the benefits of MyECheck services including the comparative analysis, the company website and company brochures, some provide detailed explanations of our Merchant Services and the competitive benefits for various applications as compared to various other payment types. However online merchants are not primary targets for us anymore because they cannot provide the transaction volume we are seeking.
32) Will any 2014 expansion projects require significant investments and/or financing?
A) No not really, we will need to upgrade all of our hardware and add a lot more but that’s relatively inexpensive and we expect to be able to pay for it from revenue. We won’t need to do anything until we have much greater revenue anyway.
33) Do you believe it wise to require new customers to pay such a high rate at such an early stage in MyECheck’s formation? Would it be more beneficial to get more customers for a lower initial integration cost and grow based off of fees, then move to a higher integration cost?
A) MyECheck is the lowest cost electronic payments services provider in the country. We have never charged anything for integration, we only charge for successful transactions. All of our customers have saved money using our service. Most have saved substantial amounts of money and resources, and have custom pricing based upon many factors unique to them; we do not publish these rates.
34) Do you have plans to take advantage of the FREE SERVICES such as Social Media (Facebook, Twitter, LinkedIn, etc…)? Social media updates would dramatically reduce shareholder inquiries.
A) Yes, likely after we get IR
35) Can you please tell us which companies, previously press released, are currently processing payments through MyECheck?
A) So far, companies that have been previously announced that are currently processing payments through MyECheck are Forever Living Products, Simplifile and Always On Vacation.
36) Have you considered Venture Capital or Grants as possible financing tools for growth?
A) At this time we are not seeking outside financing.
Company Information
Corporate Name: MyECheck, Inc.
State of Incorporation Wyoming
Main Office Address: 3941 Park Dr., Suite 20-179
El Dorado Hills, CA, 95762
Stock Exchange/Ticker OTCink “MYEC”
Transfer Agent: Signature Stock Transfer
FAQ
1) What is an accurate count on shares outstanding? What is the current float?
A) As of December 1, 2013, there are 3,612,470,000 shares issued and about 609,000,000 in the public float.
2) The MyECheck Founder & CEO, Ed Starrs holds 3,000,000,000 shares, about 79% of the issued and outstanding and 60% of the authorized, what are his intentions for these shares?
A) Mr. Starrs plans on holding his stock long term and has no plans to sell any stock. Mr. Starrs’ stock is “Restricted” and cannot be sold without an exemption from registration such as Rule 144. Rule 144 may permit Mr. Starrs to sell up to 1% of the issued and outstanding stock, or up to 36,124,700 shares within any three month period. If Mr. Starrs changes his plan and decides to sell stock, he would be limited to selling relatively small amounts of stock from time to time as permitted under an exemption to registration, and any such sales would be subject to disclosure through the OTC.
3) Why are there almost 5 billion shares authorized and 3.6 billion issued and outstanding, this seems like a lot of shares compared to other companies, does it pose any unique problems and is the Company considering restructuring its equity, would management retire their shares?
A) The current equity structure is the result of re-organizing the Company that enabled management to regain control of the Company and restart liquidity in the public market, and that process is still going on. The equity structure has served an important purpose for the Company and has proven to be the right structure during the past year. Currently there is no need, therefore no plan to restructure the Company equity. A reverse split at this time, for example, would cost shareholder value we believe and would give shareholders fewer shares at an inequitable value. We are however open to restructuring if and when we believe there is a viable reason to do so. It is very likely that equity restructuring will be considered in 2014. The idea that management would give away their ownership positions is unrealistic.
4) Are there any current plans to form an IR Department for MyECheck?
A) We will have internal Investor Relations when we are fully reporting on a more senior exchange, and we will likely use external Investor Relations services in the interim.
5) Is MyECheck still the fastest, safest and cheapest way to transfer money from any US bank account?
A) Yes, it’s the fastest, safest and lowest cost way to move money electronically in the United States. And, advances in banking industry infrastructure along with our own new developments will improve our capabilities and the services we provide.
6) Why do some brokers show a Chill on MyECheck’s stock, when other brokerages do not? Is there a way to get that fixed?
A) MyECheck is not currently DTC eligible and needs to have a DTCC member recommend us to become DTC eligible. When MyECheck re-domiciled from Nevada to Wyoming, a new CUSIP was issued to the Company stock and the old CUSIP was cancelled. DTCC tracks Issuers by CUSIP so they have no way of tracking MYEC, therefore cannot clear MYEC stock electronically through DTC. Some brokers can get around this manually and some can’t or won’t. We have been working with DTCC members on becoming DTC eligible in the very near future.
7) There was a PayPal Survey sent out showing MyECheck as an alternative. Do you have any knowledge of this? If so, can you comment on it?
A) We have had no contact with PayPal regarding this survey and had no role in it other than being listed as a payment services provider.
Instead of offering MyECheck branded services to PayPal users, a better application for PayPal would be to use our technology as the default bank account funding method instead of ACH, it would work with more PayPal user bank accounts, the funds would clear at least a day faster than they currently do, and it would be more secure with less failed and returned transactions therefore lower cost and much more efficient.
8) What happened to the stock issued for the debt June 15, 2015 of 400,000,000 shares?
A) The stock was issued for the conversion of convertible debt that was purchased by a third party investor. However subsequent to the issue, the investor failed to pay the debt as agreed so the stock was cancelled on the ledger of Company.
9) What were the negotiations that were made with creditors to eliminate $502,222 of debt? Was this debt cancelled because of an agreement to trade for MyECheck’s check processing services?
A) The majority of the debt eliminated was loans to the Company, the derivative liabilities created by the loans, and numerous small accounts payable bills from various service providers. The loan instruments were Convertible Notes and Debentures. We found investors to buy these notes from the note holders; the notes were converted into shares of MYEC and sold. Almost all of the stock in the public float was created this way. With the debt from the Convertible Debenture gone the derivatives liabilities are eliminated also. The smaller debt was negotiated on a case-by-case basis with each creditor with various resolutions, but none of the creditors would have brought much value as a customer. This conversion of debt into stock also restarted the market for MYEC stock.
10) Do you have an established timeframe for MyECheck’s financials to be audited? As it would create a wealth of investor confidence, both old and new investors.
A) We plan to start the process of filing audited financial reports and become fully reporting early in 2014, this will require our previous unaudited financials be audited also.
11) What is the approximate length of time for integration of a new client? (Best, worst case and factors involved)
A) It typically takes around a week or two for a nimble client to sign up and integrate from start to finish, however the technical integration part with us is quite easy and takes very little time once the documents have been read. Our services only require data that be sent to us in one of the secure specified formats, but depending on many factors such as the size of the client, their IT personnel and schedule, their website and shopping cart, applications, database, accounting system, fulfillment system and many factors beyond our control, it takes from 2 hours to several months.
12) How are fees and percentages with sub patent agreements determined? What is the range?
A) Licensing fees are determined by the forecast number of transactions and average transaction amount. Fees consist of an upfront licensing fee for a patent sub-license, an upfront fee for a software license if required, and an ongoing fee that is a percentage of transaction amount or a flat fee per transaction. This is typically quoted to the prospective licensee after we have reviewed their business and determined their processing volume – number and size of transactions. Because our fees are custom to each client, we do not publish our fees publically.
13) What are your immediate and future hiring plans and how do you expect this to affect your speed of growth?
A) We are hiring Senior Management now, they will in turn hire subordinates. It is essential for speedy growth. Our services and internal operations are fully automated and touch free so essentially require only monitoring. Our personnel growth will be in Sales & Marketing and IT and Development.
14) Considering that MyECheck is far superior to competition, what difficulties do you foresee going forward regarding widespread acceptance of your technology?
A) The biggest obstacle is the portion of the establishment banking industry that has vested interests in ACH and resists change out of fear. Once they inevitably and collectively agree to embrace fully electronic checks, the landscape will change very dramatically, very quickly, and for the better of the national payment system.
15) What is the nature of the patent licensing agreement between Ed Starrs (yourself) and MyECheck, Inc. (the company)?
A) The agreement is exclusive and royalty free for MyECheck, however Mr. Starrs has the right to re-negotiate the agreement at any point in the future although there are no plans for re-negotiation.
16) What factors make MyECheck money transfer more secure internationally? Are international payments currently available with MyECheck?
A) It’s sounds like just semantics, but MyECheck is not a Money Transfer Service, which requires special licenses and involves a high degree of risk. We do not transfer or process money at all, either domestically or internationally.
To clarify our service processes electronic check data on behalf of merchants, enabling fully electronic check payments to our merchants from US customers/payers. Money transfer services, like Western Union, are person to person long distance cash payments. One person pays cash on one end, the other person picks up cash at the other end.
Currently we do not offer international payments, and although we plan to add global payments in the future, it is currently not our focus.
17) MyECheck appears to work the same as Debit (in that it transfers money from checking accounts), but it is significantly cheaper and faster. Is the Debit card market one that you intend on pursuing? Is it possible to have a MyECheck ‘debit card’ which would then create a virtual check and be facilitated by your patented technology?
A) Debit card transactions are processed through the Visa/MC or ATM networks, with their fees, limitations and rules. MyECheck creates and processes checks just as if it was originally a paper check, but in essentially real time. This is dramatically different than debit card services. Our service provides access to every checking account in the US, not just those tied to a specific card network. The user doesn’t need a card or any hardware to pay using MyECheck, just a checking account.
We are targeting market share of the $44 Trillion check industry with a unique patented service, this industry has different customers and is a better fit for us than the $1 Trillion over saturated debit card industry.
However, a MyECheck customer or licensee hosting a virtual or mobile wallet with MyECheck as the account funding method could issue a debit card to draw or spend those funds in the wallet, but it is unlikely MyECheck will need to offer this type of payment service itself.
18) What factors affect true processing speed? Is it the same internationally? What is the longest amount of time it can take to process?
A) The primary factors that affect processing speed are user interface software/browser, network connectivity and latency. Response times are typically 1 to 3 seconds.
19) Do you anticipate uplisting in the near or long term? What obstacles do you see preventing possible uplisting?
A) We plan on moving up to more senior exchanges when we qualify, hopefully early in 2014. We don’t anticipate any specific obstacles at this stage and we are confident we can address any that may present.
20) In the past, MyECheck has a history of PRs regarding new clients and progress. What are your intentions of PR’s and updates going forward?
A) At this stage in the Company’s regrowth, the company is trying to develop long-term strong, service oriented business relationships with its clients. Previous press releases have resulted in clients being contacted multiple times by the general public to confirm the relationship, however this is inconsistent with the Company’s internal policies regarding customer service and retention, and may not be welcome by our clients. As a result, the Company has decided not to publically announce each new client. The Company will continue to make announcements regarding material events but will not identify clients by name at this stage unless requested by the client. We will likely announce clients of unusual significance, and may resume more frequent merchant announcements in the future.
21) Are the Corporate Merchant Solutions agreements still on track for implementation this year? If so, are these agreements still anticipated to bring in $250,000 per month gross revenue to MyECheck?
A) No, unfortunately Corporate Merchant Solutions is not on track for completion of implementation before the end of the year.
22) What is your strategy, near term, for signing new customers for the purpose of licensing and sub-licensing MyECheck’s patented technology? How do you see that strategy changing in the future to allow for accelerated growth? What level of growth do you foresee in the next 1, 2 & 5 years?
A) The short-term focus is on going live with a few large merchant services customers and licensees that can generate very large transaction volumes. Most of our sales leads come from resellers, and we are starting to build a sales organization to manage the resellers. We also have relationships with resellers that have yet to be engaged.
23) How do you plan to overcome obstacles, such as larger customers who are more hesitant of change, when offering MyECheck’s technology as a solution?
A) It depends on who has presented the obstacle and why, there’s potentially dozens of answers to this. One way is to point to one of their competitors or similar company that made the change, tell them why they changed and what competitive benefits they reaped. Fortunately we have processing history and some references.
24) To whom does MyECheck owe the remaining $302,000 shown as current liabilities on the balance sheet, as per the September 30, 2013 Quarterly Report?
A) It’s a combination of a Loan from 2009 (about $65k), Legal (about $110K), Accounting (about $30K), Developers (about $50k) and other professional services fees.
25) What is the exact nature of the operating expenses shown in the Quarterly Reports?
A) Development, hosting, office, transfer agent fees, and legal fee. The development money went to pay our outsourced developers, we lease hosting space for our production system at QTS Data Center in Sacramento, and we lease a small business office. The transfer agent fees and the legal fee are a necessary part of being a public company.
26) Has MyECheck Inc. hired a Director of Merchant Services? Who is Jim Gisler? (He claims to work for MyECheck Inc. on LinkedIn).
A) We do not have a Director of Merchant Services. Mr. Gisler was a former employee of MyECheck not currently employed with us since 2010, he was a great employee who left on friendly terms and we would hire him back, but we don’t need him right now.
27) MyECheck Inc. operates under the Check 21 Act in the United States. Are there similar laws in most other Countries, and could this be an issue for International expansion?
A) There are no similar laws in other countries yet, but it is likely in the future. In the meantime, the US market holds enormous potential measured in trillions of dollars. We do have an international strategy of partnering with international payments providers. We are reviewing international payments services providers for implementation in the second half of 2014. The proposed wholesale partnership would provide MyECheck as the US component of their international service, and we would add their global services to our payment platform, giving us immediate comprehensive global capabilities.
28) Does MyECheck Inc. plan on getting involved with Airlines, Online Gambling Sites, Brokerage Firms, Municipalities, and Payroll Processing Agencies?
A) Not Online Gambling until the legal climate clarifies, but all the others listed can benefit immediately from MyECheck and they are currently sales targets. We have previously successfully provided services to the State of California and other government entities, so government is a primary target for us.
29) What percentage of revenue is generated by the new IP Licensing Revenue Model? What percentage of the fees generated by licensees flow to MyECheck Inc.?
A) This is the first time revenue has been reported from licensing fees in the previous quarter, the percentages of revenue generated so far would not be a viable indicator of anything yet. We expect the majority of fees to be generated from licensing fees, ultimately. All fees generated by licensees flow to MyECheck.
30) Will MyECheck’s technology ever be used with mobile devices?
A) Yes, MyECheck technology has been used on mobile devices. As a back-end processor, our merchants have used a variety of applications and interfaces to collect the data they pass to us, including mobile apps. We expect mobile apps to be a common way merchants will use to collect payment data and/or payment authorizations from their customers. We are working on new technologies that further secure these types of transactions.
31) Why should online merchants choose to use us (MyECheck) over the competition?
A) MyECheck works with more of their customers, they get paid faster, it costs them less money, payments are more likely to be successful and less likely to be reversed, and payments can be guaranteed.
The specific comparative benefits depend on the online merchant and what competition you are referring to. Usually a business prospect is analyzed and a detailed custom proposal is prepared that highlights the specific benefits and cost savings for that unique client.
Numerous sources of information highlight the benefits of MyECheck services including the comparative analysis, the company website and company brochures, some provide detailed explanations of our Merchant Services and the competitive benefits for various applications as compared to various other payment types. However online merchants are not primary targets for us anymore because they cannot provide the transaction volume we are seeking.
32) Will any 2014 expansion projects require significant investments and/or financing?
A) No not really, we will need to upgrade all of our hardware and add a lot more but that’s relatively inexpensive and we expect to be able to pay for it from revenue. We won’t need to do anything until we have much greater revenue anyway.
33) Do you believe it wise to require new customers to pay such a high rate at such an early stage in MyECheck’s formation? Would it be more beneficial to get more customers for a lower initial integration cost and grow based off of fees, then move to a higher integration cost?
A) MyECheck is the lowest cost electronic payments services provider in the country. We have never charged anything for integration, we only charge for successful transactions. All of our customers have saved money using our service. Most have saved substantial amounts of money and resources, and have custom pricing based upon many factors unique to them; we do not publish these rates.
34) Do you have plans to take advantage of the FREE SERVICES such as Social Media (Facebook, Twitter, LinkedIn, etc…)? Social media updates would dramatically reduce shareholder inquiries.
A) Yes, likely after we get IR
35) Can you please tell us which companies, previously press released, are currently processing payments through MyECheck?
A) So far, companies that have been previously announced that are currently processing payments through MyECheck are Forever Living Products, Simplifile and Always On Vacation.
36) Have you considered Venture Capital or Grants as possible financing tools for growth?
A) At this time we are not seeking outside financing.
Investors
MYECHECK, INC (“MYEC”) STOCK IS A HIGH RISK INVESTMENT. MYECHECK, INC IS AN EARLY STAGE, STARTUP COMPANY AND IS HIGHLY VULNERABLE TO KNOWN AND UNFORESEEN RISKS, INCLUDING BUT NOT LIMITED TO INABILITY TO EARN REVENUE AND CONTINUE OPERATIONS. MYECHECK DOES NOT GIVE INVESTMENT ADVICE; PLEASE CONSULT A LICENSED PROFESSIONAL FINANCIAL ADVISOR BEFORE INVESTING. ONLY EXPERIENCED, QUALIFIED INVESTORS THAT CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT SHOULD CONSIDER INVESTING. MYECHECK, INC IS A LIMITED REPORTING COMPANY SUBJECT TO LOWER REQUIREMENTS OF DISCLOSURE THAN A FULLY REPORTING COMPANY. MYECHECK FINANCIAL STATEMENTS AND REPORTS ARE UN-AUDITED.
(0)
(0)