Yes folks… the latest 10-Q is out, and what a great exercise in fiction writing it is. Pure smoke and mirrors.
Let’s set the stage here. This latest 10-Q (as all SEC filings are) is a legal document. To misrepresent the information provided in the legal section (see below graphic-click to enlarge) in our opinion sets the stage for the rest of the document. Doing so also calls into question any other information provided on the form. For if you misrepresent the legal information in the “legal” section… how is the rest of the document any more accurate ? Also think of filing this document as you would your IRS tax return you file. What happens if you misrepresent and/or omit information on that form? There is really no difference between the two, as they are both legal documents submitted to a federal entity.
Of course we are talking about the situation in which Mr. Samblis was sued (for $75,000.) for breach of contract over one of his proposed shows, for his proposed TV broadcast company (see the actual court documents here). There is no question there was legal action against both Mr. Samblis and IC Places, the documents prove it, and, Mr. Samblis agreed to a settlement of the case, in which he later defaulted on (all documentation available here).
We also know that there were at least 2 other previous incidents where information was misrepresented on the SEC document filings, (President resignation here), and CEO Employment contract here). Of course this document is largely a financial document, and given the above, and having no access to the company checkbook… how can anyone believe the financial information is correct also?
As an example, look at the graphic below… it lists NO advertising revenue ! NO revenue in ALL of 2013, and NO revenue for the first 3-months of 2014. HOW IS THAT POSSIBLE ? How is it possible for an operating company, displaying obvious advertising on their websites, not to have any revenue in over 15 months. Is that believable ?
Notice the clarifying statement contained within the 10-Q where it states: “Advertising revenue is recognized when businesses place advertisements on the IC Places website or through banner ads or upon a customer’s purchase of partner offerings originated from links through the company website. Punch Television records and recognizes revenue when advertisements are aired through their websites.” There is certainly advertising being displayed on the websites, and there are certainly links being offered on the websites, so… which statement is correct? Both cannot be correct given the evidence. Notice the “Punch Television” designation within the statement… apparently Mr. Samblis doesn’t proofread his filing documents prior to hitting the send button. Perhaps Mr. Collins should be alerted to the fact that Mr. Samblis is still referring to his company as “Punch Television”… wasn’t Mr. Samblis prohibited from doing that?
So folks… how believable is ANY of the information contained within this (or any) SEC document filed by Mr. Samblis? Many investors wait in anticipation of these filings, as the concept is for the document to give investors a clear and accurate picture of the company. How clear and accurate of a picture of IC Places, Inc. is this document? We suspect Mr. Samblis laughs so hard when drafting and filing these documents, that he looks forward to the time when he can do it again. Who wouldn’t want to take a trip to fantasyland every 3 months? If Mr. Samblis wants to generate some real revenue from his efforts, perhaps he should take up fiction writing in the form of a book describing his tried and proven ways to run a successful cash-cow of a company.
And just as an aside… what kind of CEO overdraws the company checking account to the tune of generating $697.00 in overdraft fees in 3-months? (see below graphic excerpted from the referenced 10-Q filing). Banks customarily charge $30.00 for an overdraft situation. $697. represents about 23 overdrafts within 3-months time. That’s about 1 overdraft every 4 days. There’s some top-notch fiscal management for you !
WHY would anyone trust Mr. Samblis with 1-penny (would buy 5-shares at current PPS) with their investment money given the above ???