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Investment Profile: XF MY


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Investment Profile
OTC Markets: XFMY
March 11, 2013
Contact Info
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  • Suite 800
  • Dallas, TX 75244

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http://www.otcmarkets.com/stock/XFMY/filings

SEC Filings

Form Type Received Period Ending Size Report
8-K Apr 22, 2013 Apr 17, 2013 12.4 KB PDF RTF HTML XLS
8-K Apr 22, 2013 Apr 19, 2013 11.3 KB PDF RTF HTML XLS
8-K Apr 11, 2013 Mar 15, 2013 15.4 KB PDF RTF HTML XLS
8-K Apr 5, 2013 Apr 1, 2013 111.9 KB PDF RTF HTML XLS
8-K Apr 1, 2013 Mar 29, 2013 29.7 KB PDF RTF HTML XLS
3 Mar 11, 2013 Feb 25, 2013 5.9 KB PDF RTF HTML XLS
3 Mar 6, 2013 Feb 25, 2013 3.0 KB PDF RTF HTML XLS
8-K Mar 1, 2013 Feb 25, 2013 14.0 KB PDF RTF HTML XLS

XFMY - Xformity Techs Inc (OTC)
Date Open High Low Last Change Volume % Change
03/15/13 0.0070 0.0130 0.0061 0.0120 +0.0050 508000 +71.43%

Composite Indicator
Trend Spotter TM Buy

Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Buy

Short Term Indicators Average: 100% - Buy
20-Day Average Volume - 185895

Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy

Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 95522

Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy

Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 122306

Overall Average: 100% - Buy

Price Support Pivot Point Resistance
0.0120 0.0035 0.0104 0.0173
Read more at http://www.stockta.com/cgi-bin/opinion.pl?sym...iigVf7H.99



The dream team of social media is now in the XFMY shell. We have a new company that includes an Accomplished CEO with two new Directors and below we detail there accomplished each as CFO and Vice President.
This is the time to now get in as this is the cleanest deal I have ever seen reverse merge.
The reasons I say this are the facts that this shell had an existing Computer company in it that now has been moved out to make room for this new company.
they also sold the assets to clear this shell of debt and sold the assets for 1.6 million and paid down the liabilities to make this a brand new company balance sheet.
They next announced the change by way of filings and now even have announced the new directors.

Please take the time to read all the information in this newsletter before you buy this week.


I am confident once you do the reading here now you will see a powerful new company ahead of the news releases and release to the market.


Filings are now below this box.

Please Take the Time to Read the

Email


SEC Filings


Form Type Received Period Ending Size Report
3 Mar 6, 2013 Feb 25, 2013 3.0 KB PDF RTF HTML XLS
8-K Mar 1, 2013 Feb 25, 2013 14.0 KB PDF RTF HTML XLS
10-Q Feb 15, 2013 Dec 31, 2012 518.8 KB PDF RTF HTML XLS
NT 10-Q Feb 14, 2013 Dec 31, 2012 10.7 KB PDF RTF HTML
PRE 14A Jan 16, 2013 Jan 16, 2013 695.8 KB PDF RTF HTML XLS

Tom Chernaik. Tom Chernaik is the CEO of CMP.LY. Working with leading brands, agencies and PR firms,  Tom has been on the forefront of digital marketing in Web 2.0 ...
www. linkedin.com /in/tomchernaik Cached
More results from linkedin.com »

Corporate Profile
OTCBB Markets: XFMY

Business Description

Overview

CMP.LY social media disclosure solutions allow you to mitigate risk, fulfill regulatory obligations and reduce the overhead of social initiatives. Our easy-to-implement social media disclosure platform leaves plenty of room for companies of all sizes — even those in the most highly regulated industries — to run effective and creative programs.

In addition, our structured disclosure architecture unlocks the power of campaign impact data. This information offers multi-platform insights into program and participant dynamics not measurable with typical social media monitoring/listening tools to help you quantify social program performance, maximize your programs’ effectiveness and enable consistently repeatable success.

Why CMP.LY

CMP.LY provides an integrated means to:

  • Mitigate social media risks
  • Optimize marketing
  • Reduce social media overhead
  • Standardize practices across all platforms
  • Develop and maintain consumer trust

CMP.LY’s structured disclosure solutions include:

  • Our universal system of social media disclosures
  • Easy-to-use program management tools
  • Automated documentation and monitoring
  • Performance measurement and compliance reporting

CMP.LY is designed for:

  • Social advocate and affiliate programs
  • Contests, promotions, sponsorships, endorsements
  • Corporate communications, PR, IR
  • Employee social engagement
  • Industry-specific compliance requirements

Learn more

CMP.LY for Social Media Compliance
Optimizing Social Media Marketing with CMP.LY
CMP.LY Products
The CMP.LY Iconic Compliance Framework
The CMP.LY Disclosure Standard


FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person  *

CHERNAIK TOM

2. Date of Event Requiring Statement (MM/DD/YYYY) 2/25/2013 3. Issuer Name  and Ticker or Trading Symbol

XFormity Technologies, Inc. [XFMY]

(Last) (First) (Middle)

P O BOX 1590

4. Relationship of Reporting Person(s) to Issuer (Check all applicable)

__  X __ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)

ITEM 5.02

DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION

OF DIRECTOR; APPOINTMENT OF CERTAIN OFFICERS;

COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS

Effective February 25, 2013, the Board of Directors of XFormity Technologies Inc. and its wholly-owned subsidiary, XFormity, Inc. (collectively the “Company”) appointed three (3) new members to serve on the respective Boards of Directors, bringing the total number of members to eight (8).  The following information is provided for each of the new members:

Tom Chernaik , age 40, has been CEO of CMPLY, Inc. in New York City since 2010, CMP.LY has developed a leading platform for disclosure, compliance and measurement of specific social media initiatives for brands and their agencies. Prior to Founding CMP.LY, Tom provided consulting for business solutions in digital communications as president of Begodo Holding Corp. in New York.  From 2003 to 2008, he was Senior Account Manager and Senior Manager Marketing Solutions with XM Satellite Radio.  He earned a Bachelor of Arts degree (1995) from New York University and Juris Doctorate (1998) from Cardozo School of Law.  He has served as Adjunct Professor – Digital Marketing with Rutgers University and Adjunct Professor in the Entertainment Industry Continuing Sales Program at Baruch College in New York.

Mark Weston , age 61, is owner of WestonWorks, LLC,  a service firm which he established in 2005 that provides general management, marketing, financial and strategic consulting to early stage and small to mid cap companies. His range of experience extends from leading and growing start-up firms and turn-arounds to directing strategy for corporate divisions.  Weston has led company growth in products and services across a wide range of industries including the Performing Arts, Internet, Wireless Telecom, Software, Biotechnology and Pharmaceuticals. He served as Chief Operating Officer and Senior Vice-President of Ceetox, Inc., from 2003 to 2005, a start up Contract Research Organization which developed and marketed a process and database used to predict drug toxicity in animals.  From 2001 to 2002, he was Vice-President of Marketing and Business Development of Visogent Technologies, Inc., a start up software developer of data services management solutions for wireless network operators and enterprises. He attained his Bachelor of Arts degree from the University of Missouri in 1975 and M.B.A through University of Chicago Graduate School of Business in 1986.

Sheldon Drobny , CPA, age 67 is Founder, Chairman and Principal of Paradigm Group II, LLC, an investment firm with over $200 million of investments in over 40 companies (1991 to present). He is also co-founder of AnShell Media, LLC, precursor of Air America Radio Network (2002 to present).  Mr. Drobny attained his Bachelor of Science in Business Administration from Roosevelt University in 1967; and worked at a licensed CPA with the firm Adler Drobny Fisher LLC from 1971 to 2003. He is a NASD Member Series 7, 24, 63 and is licensed in Insurance in the State of Illinois.  Additionally, he is admitted to practice before the US Tax Court as a non-attorney since 1993.


Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth information with respect to beneficial ownership of our common stock at September 19, 2012 by each person who beneficially owns more than 5% of the common stock; by each of our executive officers named in the Management section; by each of our Directors; and by all executive officers and Directors as a group. Unless otherwise indicated, we believe all persons in the table have sole voting and investment power for all shares beneficially owned by them.  (1)

Name and Address of Beneficial Owner (2) (3)

Shares

Percent

Chris Ball  (4)

1,602,465

2.33%

Drew Seale  (5)

1,415,298

2.06%

Michael Shahsavari  (6)

1,938,667

2.82%

Farzin Ferdowsi  (7)

6,052,300

8.79%

Homayoun Aminmadani  (8)

6,047,067

8.78%

Jack Rabin  (9)

1,027,500

1.49%

Ken Johnson

580,600

.84%

Farsheed Ferdowsi

629,155

.91%

Cook County Pension and Benefit Fund

4,037,724

5.87%

All officers and directors as a group-seven persons

7,193,685

10.45%


News Article:

CMP.LY Announces $2.4M Series A Funding

Company Addresses Growing Demand for Social Media Disclosure and Consumer Trust

New York, NY — May 31, 2012 — CMP.LY, the standard for making disclosures in social and digital media, today announced an initial close of more than $2 million in Series A financing led by  Innovation Ventures L.P. headquartered in DE and PA-based  Originate Ventures . David J. Freschman, Managing Principal of Innovation Ventures and Eric Arnson, Managing Partner of Originate Ventures, join CMP.LY’s board of directors.

Series A participants also include angel investors  Jay Baer and  Steve Garfield . They join seed investors Safir Capital, Angel Street Capital and others.

“As the line between genuine, unpaid endorsement and compensated endorsement continues to blur, CMP.LY invented a new approach to transparency. Anyone — most notably consumers — can now see for themselves if a recommendation or promotion is unbiased,” notes Originate Ventures’ Arnson.

Innovation Ventures’ Freschman observes, “The rapidly evolving marketplace requires scalable solutions for standardized disclosures, automated monitoring, performance measurement and compliance documentation. CMP.LY is first to address these needs across social media, the web and mobile.”

“Leading brands understand that they must better measure program performance and manage risk as they roll out increasingly larger social initiatives,” states CMP.LY CEO Tom Chernaik. Among the companies that have turned to CMP.LY to address trust, transparency and regulatory compliance are well-known brand  Jamba Juice , digital marketing agency  360i , social marketing agency  Big Fuel , public relations agency  Coyne PR and word-of-mouth and social media marketing agency  Zócalo Group .

Case Study: UK Regulator Bans Nike Tweets for Lack of Social Media Disclosure

Recent events have brought focus to the digital and social media disclosure requirements for promotions and marketing communications. In the past few months, we have seen the  FTC hold a daylong workshop on the topic and settle an  investigation of Spokeo for $800,000 for violations of both the Fair Credit Reporting Act (FCRA) and for lack of disclosure by employees. Furthermore,  Facebook settled a class action lawsuit for a lack of disclosure around its Sponsored Stories product by pledging to donate $10mm to charity and providing users more information this ad product along with new opt-out options.

Most recently, on June 20, the Advertising Standards Authority (ASA) in the UK  ruled against Nike and banned a campaign they were running leading up to the Olympics due to Tweets from sponsored athletes about the brand because they lacked the required disclosures.

During the Olympics, I seemed that London had gone a bit mad about the games. Leveraging that excitement, many brands focused efforts on social media — in particular leveraging sponsored athletes to help deliver their marketing messages. In early April, the Office of Fair Trading (OFT) made  public statements about concerns with sponsored Olympic athlete Tweets . The discussion had been brewing since as Tweets were identified in the press about cars, razors and other perks shared with athletes.

Nike was one of the brands cited by the OFT. Back in January, the brand’s campaign was shared in the personal Twitter accounts of two football (soccer in the US) stars, Wayne Rooney and Jack Wilshere. The ASA received a complaint and investigated the matter.

Nike UK responded that both players were well known for being sponsored by the brand and argued that Twitter “followers” would not be misled about the relationship it had with the players. The company further argued that the web address in the tweet was clearly branded as Nike, and that the message carried the company’s known ad tagline — clearly indicating which tweets by the players were personal and which were ads.

Although Nike indicated that the players were free, as part of the campaign, to independently reply or re-tweet consumer tweets at their own discretion, the ASA said it was understood from its investigation that the final content of the tweets was “agreed with the help of a member of the Nike marketing team”.

Social Media Disclosure Must be Obvious

The ASA said the average Twitter user quickly scrolls through many tweets a day and that the marketing code states that ads must be “obviously identifiable”. (Note that this is similar to the FTC’s “clear and conspicuous”.) The ASA stated:

We considered that the Nike reference was not prominent and could be missed. We considered there was nothing obvious in the tweets to indicate they were Nike marketing communications.

It concluded Nike breached the advertising CAP code. As a result, the campaign has been banned and all of the related posts will have to be removed.

Disclosures in social media are nothing new. Since the  FTC’s 2009 update expanding the Guidelines for Testimonials and Endorsements , it has been clear that Tweets, Status Updates and other social messages require disclosure. More than the disclosure itself, the FTC requires that marketers:

  1. Mandate a policy that is in compliance with the law
  2. Make sure that those who work for them or on their behalf know what the rules are; and
  3. Monitor for compliance with their policies

In the UK, both the OFT and the ASA have weighed in, stating that disclosures must be included in such messages and clarifying that even celebrities — traditionally a gray area in the US — must disclose their connections to a brand when they are paid or incentivized.

What’s next for social media disclosure?

What have we learned in the past few weeks of activity? We’ve learned that regulators are serious about ensuring that advertising is not deceptive and that sponsorship or other relationships between brands and their advocates are clearly disclosed.

The good news is that the FTC is expected to issue additional guidance for Dot-Com Disclosures later this year. That document was last updated in 2000, when Mark Zuckerberg was a sophomore in high school and before Facebook, Twitter or Pinterest were even an idea. In advance of the FTC guidance, the Word of Mouth Marketing Association (WOMMA) issued an  updated draft of their Social Media Disclosure Guidelines this week. (Disclosure: CMP.LY CEO Tom Chernaik is Co-Chair of the Members Ethics Advisory Panel of WOMMA.) The previous version is referenced throughout the FTC’s 2009 update and in the social media policies of countless organizations.

It is our hope that, with this renewed attention from regulators and additional guidance and clarification, marketers will focus on getting attention in all the right ways. We look forward to brands and agencies better understanding that the benefits of transparent disclosures to their client relationships far outweigh the consequences of the alternatives.

More White Papers from CMP.LY

NOTICE OF SPECIAL MEETING
TO BE HELD ON _____________, 2013

TO THE SHAREHOLDERS OF XFORMITY TECHNOLOGIES, INC.

You are cordially invited to attend a special meeting of shareholders of XFormity Technologies, Inc. to be held on _______________, 2013 at __:00 a.m. local time, at _____________________________________.

At the special meeting, you will be asked to vote on the following:

1.  To approve the sale of substantially all of the assets of our wholly-owned subsidiary, XFormity, Inc., to Altametrics XFormity, LLC, a Delaware limited liability company in exchange for $1,300,000 in cash as set forth in the Asset Purchase Agreement between the parties dated effective as of August 1, 2012;

2.   Subject to the approval of the Asset Sale, to authorize the Board of Directors to change the name of the Company to a name approved by the Board at such time in the future as the Board may determine, in its sole discretion.

3.   To approve a reverse stock split by a ratio determined by our board of directors of up to 1-for-20 of the issued and outstanding shares of our common stock and issued and outstanding options, warrants and other rights convertible into shares of our common stock, all at the discretion of our board of directors to be implemented in the future as and when determined by our board of directors;

4.  To transact any other business as may properly come before the special meeting, including any adjournment or postponement of this meeting.

Only shareholders of record at the close of business on _______________, 2013 are entitled to receive notice of and to vote at the special meeting and at any adjournment and postponement.

Your vote as a shareholder of XFormity Technologies, Inc. is important. You may vote your shares:

by completing, signing, dating and returning the enclosed proxy card as promptly as possible using the postage prepaid envelope provided; or

by dialing 1-800-____________] and voting in accordance with the instructions given to you on the telephone; or

via the Internet in accordance with the instructions given to you at www.eproxy.com; or

in person at the special meeting even if you voted your shares before the meeting.

Dated:____________________, 2012

By Order of the Board of Directors

________________________________________

______________, Secretary


XFormity Technologies, Inc. (XFMY)

- OTC Markets

0.0026 0.00 (0.00%) Mar 5

Prev Close: 0.00
Open: N/A
Bid: N/A
Ask: N/A
1y Target Est: N/A
Beta: 1.14
Next Earnings Date: N/A
Day's Range: N/A - N/A
52wk Range: 0.01 - 0.10
Volume: 0
Avg Vol (3m) : 9,311
Market Cap: 0.00
P/E (ttm) : 0.37
EPS (ttm) : 0.01
Div & Yield: N/A (N/A)

Company Description


“The FTC requires all material connections to be disclosed with a documented process. Disclosure information gives brands authenticity and transparency. Leading the way and making it possible for brands is CMP.LY, an NYC-based social media compliance and disclosure platform.”

Mashable, July 2012


“Twitter promotions must provide rules disclosure… For larger-scale promotions, you may wish to utilize a third-party service such as CMP.LY to ensure compliance.”

Social Media Examiner, June 2012

On tour with the CMP.LY Team

WOMMA Social Week NY Events • October 18
The events have passed, but you can access some presentations and other great resources

Pinning & Winning: Activating Social Contests

  • CMP.LY’s Tom Chernaik was joined by Apu Gupta of Curalate and Geoffrey Colon of Social@Ogilvy to examine best practices for giveaways, sweeps and contests across Twitter, Facebook and, of course, Pinterest.

IAPP Practical Privacy Series
October 30 • New York

  • CMP.LY CEO Tom Chernaik presents on endorsements, testimonials and promotions as part of the marketing and advertising program

Social Media Compliance

Marketers and advertisers have responsibilities for transparency and disclosure, and the unique nature of social media — including the brevity of messages — is no excuse for ignoring these responsibilities.

Compliance is No Longer Optional

The unprecedented growth of social media has motivated brands to leverage the power of Facebook, Twitter and other networks in order to listen to and engage consumers, gain insights about their products and services, and ultimately drive traffic and revenue.

Increasingly, sponsored content and marketing messages are more seamlessly integrated with advocate pages and profiles, videos, Tweets, blog posts and other content on the social web.

Regulators have taken notice of these trends and have begun to implement regulations and guidelines that pertain specifically to social media disclosure. Compliance is now no longer optional, but required. Without standards and best practices, however, it is difficult for responsible marketers to comply.

Best Intentions vs. Best Practices

Many companies marketing via social media rely on best intentions when it comes to compliance and disclosure. But, by using ad hoc solutions such as hash tags or by trusting individual advocates to provide their own disclosures, companies are engaging in practices that are nearly impossible to track and document successfully.

Contests and promotions, brand advocate programs, investor relations, financial communications, affiliate marketing, corporate communications, healthcare marketing and employee social media policies all require nuanced solutions. Disclosures must be clear, conspicuous and relevant within the context of social channels and must render on all the devices used to access them.

The cornerstones of responsible and compliant social marketing are management, measurement and monitoring — all of which can be extremely difficult and time consuming, especially at scale.

What CMP.LY Does for You

CMP.LY enables companies of any size, in any industry, to conduct open and transparent marketing with solutions that make regulatory and other disclosures simple and standardized.

Our purpose-built platform makes it easier for you to address the social media compliance requirements of the  Federal Trade Commission (FTC),  Securities Exchange Commission (SEC),  Financial Industries Regulatory Authority (FINRA),  Food and Drug Administration (FDA),  Office of Fair Trading (OFT),  Advertising Standards Authority (ASA) and regulators such as individual state attorneys general. In addition, you can use our solutions to address civil liability, threats to your brand equity and other risks.

CMP.LY addresses all of these requirements with flexible and streamlined disclosure creation, policy documentation, program management, compliance monitoring and reporting. We also provide social analytics tools that yield actionable marketing intelligence.

Learn more

The FTC and Social Media
Best Practices for Blogger Disclosure
Case Study: UK Regulator Bans Nike Tweets for Lack of Social Media Disclosure


Social Media Compliance

Overview

CMP.LY social media disclosure solutions allow you to mitigate risk, fulfill regulatory obligations and reduce the overhead of social initiatives. Our easy-to-implement social media disclosure platform leaves plenty of room for companies of all sizes — even those in the most highly regulated industries — to run effective and creative programs.

In addition, our structured disclosure architecture unlocks the power of campaign impact data. This information offers multi-platform insights into program and participant dynamics not measurable with typical social media monitoring/listening tools to help you quantify social program performance, maximize your programs’ effectiveness and enable consistently repeatable success.

Why CMP.LY

CMP.LY provides an integrated means to:

  • Mitigate social media risks
  • Optimize marketing
  • Reduce social media overhead
  • Standardize practices across all platforms
  • Develop and maintain consumer trust

CMP.LY’s structured disclosure solutions include:

  • Our universal system of social media disclosures
  • Easy-to-use program management tools
  • Automated documentation and monitoring
  • Performance measurement and compliance reporting

CMP.LY is designed for:

  • Social advocate and affiliate programs
  • Contests, promotions, sponsorships, endorsements
  • Corporate communications, PR, IR
  • Employee social engagement
  • Industry-specific compliance requirements

Learn more

CMP.LY for Social Media Compliance
Optimizing Social Media Marketing with CMP.LY
CMP.LY Products
The CMP.LY Iconic Compliance Framework
The CMP.LY Disclosure Standard

Network and Corporate Programs

We offer two types of programs for brands and agencies — network and corporate. Determination of the most appropriate program is based on the specific social media initiative or campaign for which disclosures will be made.

Network

Choose this solution when your brand advocates — bloggers, industry experts, top-tier customers, employees, etc. — will publish the disclosures you’ve created along with program-related communications on their social media channels, blogs and/or websites.

Typical applications for network programs:

  • Social advocate and affiliate programs
  • Celebrity endorsements
  • Employee social engagement

Corporate

Choose this solution when you directly publish program-related communications and disclosures on your owned media, (i.e. website, blog and social media channels of your company). Corporate programs are also used when making referrals from your owned media to a third-party site.

Typical applications for corporate programs:

  • Contests, promotions, sponsorships
  • Corporate communications, PR, IR
  • Industry-specific compliance requirements

Case Study: UK Regulator Bans Nike Tweets for Lack of Social Media Disclosure

Recent events have brought focus to the digital and social media disclosure requirements for promotions and marketing communications. In the past few months, we have seen the FTC hold a daylong workshop on the topic and settle an investigation of Spokeo for $800,000 for violations of both the Fair Credit Reporting Act (FCRA) and for lack of disclosure by employees. Furthermore, Facebook settled a class action lawsuit for a lack of disclosure around its Sponsored Stories product by pledging to donate $10mm to charity and providing users more information this ad product along with new opt-out options.

Most recently, on June 20, the Advertising Standards Authority (ASA) in the UK ruled against Nike and banned a campaign they were running leading up to the Olympics due to Tweets from sponsored athletes about the brand because they lacked the required disclosures.

During the Olympics, I seemed that London had gone a bit mad about the games. Leveraging that excitement, many brands focused efforts on social media — in particular leveraging sponsored athletes to help deliver their marketing messages. In early April, the Office of Fair Trading (OFT) made public statements about concerns with sponsored Olympic athlete Tweets . The discussion had been brewing since as Tweets were identified in the press about cars, razors and other perks shared with athletes.

Nike was one of the brands cited by the OFT. Back in January, the brand’s campaign was shared in the personal Twitter accounts of two football (soccer in the US) stars, Wayne Rooney and Jack Wilshere. The ASA received a complaint and investigated the matter.

Nike UK responded that both players were well known for being sponsored by the brand and argued that Twitter “followers” would not be misled about the relationship it had with the players. The company further argued that the web address in the tweet was clearly branded as Nike, and that the message carried the company’s known ad tagline — clearly indicating which tweets by the players were personal and which were ads.

Although Nike indicated that the players were free, as part of the campaign, to independently reply or re-tweet consumer tweets at their own discretion, the ASA said it was understood from its investigation that the final content of the tweets was “agreed with the help of a member of the Nike marketing team”.

Social Media Disclosure Must be Obvious

The ASA said the average Twitter user quickly scrolls through many tweets a day and that the marketing code states that ads must be “obviously identifiable”. (Note that this is similar to the FTC’s “clear and conspicuous”.) The ASA stated:

We considered that the Nike reference was not prominent and could be missed. We considered there was nothing obvious in the tweets to indicate they were Nike marketing communications.

It concluded Nike breached the advertising CAP code. As a result, the campaign has been banned and all of the related posts will have to be removed.

Disclosures in social media are nothing new. Since the FTC’s 2009 update expanding the Guidelines for Testimonials and Endorsements , it has been clear that Tweets, Status Updates and other social messages require disclosure. More than the disclosure itself, the FTC requires that marketers:

  1. Mandate a policy that is in compliance with the law
  2. Make sure that those who work for them or on their behalf know what the rules are; and
  3. Monitor for compliance with their policies

In the UK, both the OFT and the ASA have weighed in, stating that disclosures must be included in such messages and clarifying that even celebrities — traditionally a gray area in the US — must disclose their connections to a brand when they are paid or incentivized.

What’s next for social media disclosure?

What have we learned in the past few weeks of activity? We’ve learned that regulators are serious about ensuring that advertising is not deceptive and that sponsorship or other relationships between brands and their advocates are clearly disclosed.

The good news is that the FTC is expected to issue additional guidance for Dot-Com Disclosures later this year. That document was last updated in 2000, when Mark Zuckerberg was a sophomore in high school and before Facebook, Twitter or Pinterest were even an idea. In advance of the FTC guidance, the Word of Mouth Marketing Association (WOMMA) issued an updated draft of their Social Media Disclosure Guidelines this week. (Disclosure: CMP.LY CEO Tom Chernaik is Co-Chair of the Members Ethics Advisory Panel of WOMMA.) The previous version is referenced throughout the FTC’s 2009 update and in the social media policies of countless organizations.

It is our hope that, with this renewed attention from regulators and additional guidance and clarification, marketers will focus on getting attention in all the right ways. We look forward to brands and agencies better understanding that the benefits of transparent disclosures to their client relationships far outweigh the consequences of the alternatives.

More White Papers from CMP.LY

Iconic Disclosure Framework

Clear and conspicuous disclosures can help you mitigate social risks, build consumer trust and improve the performance of your marketing programs. However, the limitations of social communication platforms, including character restrictions and small screen sizes, make delivering visible and meaningful disclosures challenging — if they can be included in messages at all.

Enter CMP.LY. Our structured and scalable disclosure solutions allow you to overcome these hurdles. Whether you’re a brand conducting contests on Pinterest; a financial institution providing legal disclosures; or an agency managing multiplatform advocate programs for a score of clients, we help you achieve the objectives of both your marketing teams and legal stakeholders.

CMP.LY Iconic Disclosure Framework

Providing standardized elements recognizable at a glance, CMP.LY makes it easy for you to communicate many types of “fine print” disclosures. Readers of social messages, blogs and websites quickly recognize the presentation of a disclosure and can choose to access additional details without interrupting their social engagement.

The framework has three disclosure methods — URLs, badges and banners. Each program can use multiple methods to address cross-platform campaigns. In addition, all clicks between framework elements are tracked as part of the CMP.LY solution’s monitoring and documentation capabilities.

Disclosure Pages

These web pages are complete disclosure statements, easily created on and hosted by the CMP.LY platform. The Disclosure Pages present default language based on the disclosure type selected for the program, with customizable fields for your branding and ample room for program-specific content.

Disclosure Methods

Disclosure URLs

Unlike generic short URLs and mystery hashtags, our Disclosure URLs are easily understood, provide context and retain their integrity when shared across social channels.

Designed for Twitter, SMS and other channels with very limited character counts, the Disclosure URLs use 15 or fewer precious characters. They can link to a page of content you designate, which is framed with a Disclosure Banner previewing your disclosure. Alternatively, you can choose to have the link go directly to your dedicated Disclosure Page.

Taking quick recognition to its highest level, CMP.LY offers the plain language URLs rul.es , leg.al and ter.ms . These readable text links function in the same manner as standard CMP.LY URLs, using at least two fewer characters.

Disclosure Badges

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XFormity Technologies, Inc. and Subsidiary

Consolidated Balance Sheets

December 31,

June 30,

2012

2012

ASSETS

(Unaudited)

Current Assets

Cash and cash equivalents

$             138,937

$               85,753

Accounts receivable-trade

166,577

171,454

Accounts receivable – related party - trade

-

14,859

Prepaid expenses

13,268

3,466

Assets held for sale -current

21,550

5,373

Total current assets

340,332

280,905

Assets held for sale – long term

-

25,913

Total Assets

$            340,332

$            306,818

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities

Convertible debentures – related parties

$              906,682

$             906,682

Convertible debentures

300,081

300,081

Accounts payable

4,901

2,718

Accrued expenses

304,239

244,441

Liabilities associated with assets held for sale - current

257,217

348,465

Total Current Liabilities

1,773,120

1,802,387

Liabilities associated with assets held for sale – long term

-

123,955

Total liabilities

1,773,120

1,926,342

Stockholders' Deficit

Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding at December 31, 2012 and June 30, 2012


-


-

Common stock, $0.0001 par value, 125,000,000 shares authorized, 53,756,553 shares issued and outstanding at December 31, 2012 and June 30, 2012

5,376

5,376

Additional paid-in capital

7,141,804

6,933,117

Accumulated deficit

(8,579,968)

(8,558,017)

Total Stockholders' Deficit

(1,432,788)

(1,619,524)

Total Liabilities and Stockholders' Deficit

$           340,332

$           306,818

The accompanying notes are an integral part of these consolidated financial statements.



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