Ever wonder what happens to the other competitors
Post# of 32626
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Posted On: 08/30/2020 11:37:21 AM
Ever wonder what happens to the other competitors when one company dominates an industry?
Wait for it...
On May 21, 2017, the Sharing Services, Inc. entered into a Stakeholder and Investment Agreement to acquired a 24% interest in 212 Technologies, LLC with an option for another 24%
Sounds good...
https://www.sec.gov/Archives/edgar/data/16444...0-12ga.htm
"212 Tech developed and owns an end-to-end online marketing and direct sales software system that is currently used by approximately 20 million users."
This agreement is from a year earlier, but don't know if it ever got executed. I think not but the one above did.
https://www.sec.gov/Archives/edgar/data/16444...1_1apg.htm
On 212 website:
:Since 1996 our technology has matured like a fine wine. Over the past 20+ years we worked with over 80 direct sales and network marketing companies. Our systems have served more than 20 million system users in 163 countries!"
Ohhh, 'served'
Ohhh, 'worked with'
That is less than 4 customers a year if I do the math.
They post no customers on their 1 page website, a few in the news section and I see 5 apps on Google play. Could be some others are white labeled, don't know.
This is from their Sharing Services, Inc. 2019 10K in April
" The Company recognized an impairment loss of $1.5 million in connection with its investments in 212 Technologies "
What's an impairment loss you might wonder?
"An impairment loss is a recognized reduction in the carrying amount of an asset that is triggered by a decline in its fair value. When the fair value of an asset declines below its carrying amount, the difference is written off."
" 212 Technology has been unable to bring to market commercially acceptable products. "
In 20+ years?
"Based on these factors, we believe there is significant uncertainty about the ability of these investees to continue to operate as a going concern and, accordingly, about the ability of the Company to recover the Company’s investment in the foreseeable future ."
https://www.otcmarkets.com/filing/html?id=135...FpQJcNRe8h
From their 10K this year in April:
"
f) Cause No. 296-03925-2019; Elepreneur, LLC v. 212 Technologies, LLC, filed in the 296th Judicial District of Collin County, Texas. On July 23, 2019, Elepreneur filed a lawsuit against 212 Technologies, LLC for issues arising from a software license agreement. A settlement was reached in this matter and the lawsuit was dismissed on March 23, 2020. "
https://www.sec.gov/Archives/edgar/data/16444...rm10-k.htm
"For the fiscal year ended April 30, 2020, our consolidated non-operating expenses include litigation settlements and other non-operating expenses of $6.0 million, including, among other things, a loss of $4.8 million from the settlement of legal claims and related legal expenses; a loss of $425,000 in connection with the Release and Settlement Agreement by and between the Company and 212 Technologies; a loss of $309,309 on impairment of a promissory note receivable; legal and other professional fees of $251,721 associated with settlement of various legal claims; and an impairment loss in the amount of $187,500 in connection with the Company’s investment in an unconsolidated entity."
"As of September 16, 2019, the Company and 212 Technologies, LLC (“212 Technologies”) entered into a Release and Settlement Agreement (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the parties: (i) rescinded a certain “Stakeholder & Investment Agreement” dated May 21, 2017 (resulting in the return of 5,628,750 shares of the Company’s Series A Preferred Stock by 212 Technologies and the return of a 24% ownership stake in 212 Technologies by the Company) and (ii) terminated a certain “Software License Agreement” dated June 12, 2018 (the “SLA”) by and between 212 Technologies and Elepreneurs, LLC, a wholly owned subsidiary of the Company (“Elepreneurs”). In connection with the Settlement Agreement, Elepreneurs agreed to pay 212 Technologies the amount of $425,000 and to dismiss with prejudice a lawsuit it had previously filed concerning the functionality of the mobile application produced by 212 Technologies under the SLA, and the parties reached mutually accommodating terms and resolved all issues between their respective companies. The Company recognized a loss of $425,000 in connection with the Settlement Agreement. "
What does this have to do with VERB you might be wondering...
Follow the dates...
VERB Adds Rapidly Growing Elepreneurs to its Expanding CRM Client Roster - November 21, 2019
https://www.globenewswire.com/news-release/20...oster.html
I don't know about you, but this speaks volumes when one of your customers ditches the software they actually own a 24% stake in with potential to own almost 1/2 the company and jumps ship over to VERB
Wait for it...
On May 21, 2017, the Sharing Services, Inc. entered into a Stakeholder and Investment Agreement to acquired a 24% interest in 212 Technologies, LLC with an option for another 24%
Sounds good...
https://www.sec.gov/Archives/edgar/data/16444...0-12ga.htm
"212 Tech developed and owns an end-to-end online marketing and direct sales software system that is currently used by approximately 20 million users."
This agreement is from a year earlier, but don't know if it ever got executed. I think not but the one above did.
https://www.sec.gov/Archives/edgar/data/16444...1_1apg.htm
On 212 website:
:Since 1996 our technology has matured like a fine wine. Over the past 20+ years we worked with over 80 direct sales and network marketing companies. Our systems have served more than 20 million system users in 163 countries!"
Ohhh, 'served'
Ohhh, 'worked with'
That is less than 4 customers a year if I do the math.
They post no customers on their 1 page website, a few in the news section and I see 5 apps on Google play. Could be some others are white labeled, don't know.
This is from their Sharing Services, Inc. 2019 10K in April
" The Company recognized an impairment loss of $1.5 million in connection with its investments in 212 Technologies "
What's an impairment loss you might wonder?
"An impairment loss is a recognized reduction in the carrying amount of an asset that is triggered by a decline in its fair value. When the fair value of an asset declines below its carrying amount, the difference is written off."
" 212 Technology has been unable to bring to market commercially acceptable products. "
In 20+ years?
"Based on these factors, we believe there is significant uncertainty about the ability of these investees to continue to operate as a going concern and, accordingly, about the ability of the Company to recover the Company’s investment in the foreseeable future ."
https://www.otcmarkets.com/filing/html?id=135...FpQJcNRe8h
From their 10K this year in April:
"
f) Cause No. 296-03925-2019; Elepreneur, LLC v. 212 Technologies, LLC, filed in the 296th Judicial District of Collin County, Texas. On July 23, 2019, Elepreneur filed a lawsuit against 212 Technologies, LLC for issues arising from a software license agreement. A settlement was reached in this matter and the lawsuit was dismissed on March 23, 2020. " https://www.sec.gov/Archives/edgar/data/16444...rm10-k.htm
"For the fiscal year ended April 30, 2020, our consolidated non-operating expenses include litigation settlements and other non-operating expenses of $6.0 million, including, among other things, a loss of $4.8 million from the settlement of legal claims and related legal expenses; a loss of $425,000 in connection with the Release and Settlement Agreement by and between the Company and 212 Technologies; a loss of $309,309 on impairment of a promissory note receivable; legal and other professional fees of $251,721 associated with settlement of various legal claims; and an impairment loss in the amount of $187,500 in connection with the Company’s investment in an unconsolidated entity."
"As of September 16, 2019, the Company and 212 Technologies, LLC (“212 Technologies”) entered into a Release and Settlement Agreement (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the parties: (i) rescinded a certain “Stakeholder & Investment Agreement” dated May 21, 2017 (resulting in the return of 5,628,750 shares of the Company’s Series A Preferred Stock by 212 Technologies and the return of a 24% ownership stake in 212 Technologies by the Company) and (ii) terminated a certain “Software License Agreement” dated June 12, 2018 (the “SLA”) by and between 212 Technologies and Elepreneurs, LLC, a wholly owned subsidiary of the Company (“Elepreneurs”). In connection with the Settlement Agreement, Elepreneurs agreed to pay 212 Technologies the amount of $425,000 and to dismiss with prejudice a lawsuit it had previously filed concerning the functionality of the mobile application produced by 212 Technologies under the SLA, and the parties reached mutually accommodating terms and resolved all issues between their respective companies. The Company recognized a loss of $425,000 in connection with the Settlement Agreement. "
What does this have to do with VERB you might be wondering...
Follow the dates...
VERB Adds Rapidly Growing Elepreneurs to its Expanding CRM Client Roster - November 21, 2019
https://www.globenewswire.com/news-release/20...oster.html
I don't know about you, but this speaks volumes when one of your customers ditches the software they actually own a 24% stake in with potential to own almost 1/2 the company and jumps ship over to VERB
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