AGM: 14870 WORDS - MUST READ 

LUCATCH DELIVERS THE STRAIGHT GOODS

Good morning, everyone, again.

I know that a lot of you have a lot of questions and appreciate that we'll keep those to the end.

And it's been a challenging year.

It's been a very challenging year.

It's been an exciting year, but it's been challenging.

You know, the company is still at a very early stage.

And we have gone out to do a lot of very, very interesting things and accomplished quite a few, but at the same time, I think people are looking for answers on several that may not have happened or are delayed.

And I'm going to give those to you this morning.

But the key is where we are in the marketplace has exceptional growth.

And if you look at both our core companies, our divisions and our portfolio companies, you will see interconnectivity, and that's really important.

We are not investing in companies that are in healthcare, bioscience, mining.

We are sticking to companies related to social activities and engagement on the Internet.

Now, that's still a fairly early-stage market.

It's been around maybe four or five or six years, and there's still a lot of unknown challenges.

But what we have done in the last year is really moved to focus on long-term revenue.

Now, what does that really mean?

Long-term revenue doesn't mean a month.

It doesn't mean two months.

It may not mean six months and it may not be a year.

When I went to school many years ago, we were taught that short term was under a year and long term was potentially over a year.

Today's short term is tomorrow and long term is next week.

And that's a challenge.

It's a challenge for a company when you are looking at opportunities that have a horizon well beyond a month.

The other situation is that we need to look at opportunities that have growth in sectors that are opportunistic not today but for the future.

Ortsbo is such a company.

When we started looking at Ortsbo a couple of years ago and launched, one of the first things we had to do was explain globalization to companies.

And this is a true fact.

I would go into a company in the US that was substantive and they would have a multicultural VP or ambassador.

That meant someone who spoke Spanish.

That's it.

I met with one of the largest home shopping networks just over a year ago, and they started telling me about their expansion plans and how Ortsbo might fit into those in the long term.

And they were talking about shipping products to Mexico and overseas and South America.

I asked them, what are they doing about the large Korean population in Los Angeles?

What are they doing with large populations that speak other languages in their own country?

They have not even thought of that.

We recently have started discussions with a large HMO.

And because of the change in healthcare in the US, plain language disclosure is now a major issue.

But we no longer go in and talk about globalization.

We don't have to sell that component.

Today every company is talking about globalization.

So now it's our job to tell them how we can help them globalize.

There's a study, and many of you may have seen it in a couple of our releases, but many online commerce platforms might have a front end, let's say in Spanish, but their back end is in English.

They can lose up to 90% of their sales from cart to finish by not having a back end in Spanish.

But most companies don't offer that opportunity.

When we talk about some of the biggest sports teams in the world, not North American, but let's say English Premier League, they have millions and millions of fans.

They generally offer product and merchandise in one or two languages.

They are not globalizing.

But you would say today that, you know, as native English speakers, most of us in the room, that really the Internet is all about English, and we've published this stat time and time again.

Twenty-seven percent of people out there speak English on the Internet.

Twenty-seven!

Now, that's changed a lot, because if you think about the mobile devices and smartphones we have, that changes the dynamics for people connecting to the Internet.

So we have to be pervasive and understand those opportunities.

So where did that -- and I know Patrick will go into much more detail, but where did that leave Ortsbo as a spinout company?

Because that's really a question -- we've tried to answer it in releases and we've tried to answer it at meetings, but I think today I can be clear with you that taking Ortsbo out as a Canadian entity in our opinion was a recipe for failure.

And the reason being -- and you will say why didn't you know that in advance?

Because you really never know that in advance.

The key was, everyone in this room who is a shareholder was expecting and we are still standing by, will expect a dividend on a share on the spinout of Ortsbo.

Very simply put, that would create a taxable event, which means many of you would need to sell shares or some of your shares to cover the tax.

Well, when we went out to the market in Canada, we had a flurry of interest in Ortsbo out of the US.

We had a lot of people who wanted to finance, put money into the original opportunity at the highest level.

What we weren't seeing was secondary interest.

So think about it.

It's a very simple example.

I can give the recent Facebook example, and I certainly will not be accurate, but Facebook was originally destined to sell to institutions and corporate entities.

At the last minute, they sold to the mom and pops and all the people, small retail investors that would have ultimately bought them in the secondary market.

That caused an issue.

So you can imagine if you don't have secondary support, what will happen to your potential stock.

It might drop like a stone.

It might.

So we felt we were better suited to take the time to build Ortsbo on a commercial level and not take it out until it was ready and look to the US.

That's the plain story.

The key was, unfortunately, we just didn't see the secondary support in Canada.

We saw it in the US.

So our decision was to retool.

The other thing, which we noticed with Ortsbo, was while we were getting millions and millions and millions of users online for our free service, there wasn't a lot of traction in our paid services online.

Why?

A lot of the social media companies out there have experienced the same issue.

They get great traction, great ad rates in North America, but when you move over the water, it becomes an issue or you move very south.

That becomes an issue.

So our real focus became, how do we commercialize Ortsbo?

If it isn't a consumer product that will gain paid traction, how do we gain it as a commercial model?

And, again, Patrick will go into more detail.

But we have identified some amazingly large sectors and have had some microsuccesses in those sectors which are leading to bigger opportunities and contracts.

So you really see at the end of the day that, you know, as shareholders in this company, as deemed to have your vote to manage this company and run this company, we really don't want to put our company in jeopardy.

The other situation, which most of you feel today, is that many public companies aren't providing as timely information as you would like as a shareholder.

Now, there is a difference with what you can find out on the Internet and what reality is, but we are still bound by disclosure rules.

We are still bound by the regulatory issues that exist in the public markets, which means unfortunately we can't tell you everything until it occurs.

There's some things that we won't tell you until they happen.

If you call and want information or write and want information, and we don't tell it to everyone, we have issues.

It's not that we don't want to share.

There are restrictions.

We are not -- and I have said this at every meeting, we are not allowed to participate in the public forums.

It is a rule.

We are not allowed.

So whoever is out there saying whatever they want to say, which is their right, we have no right to defend or participate.

So you are getting a very one-sided view when you find out information that isn't coming from the company.

Yet as -- you know, as we all do research on the Internet, we want to have more information.

That's how we do things today.

Unfortunately, the rules are the rules, and we must live by them.

So, some people think we are not doing things behind the scenes.

We are doing a lot.

And as set up today, you can go around and see our products on display.

So that's really where we are today.

Our core focus is to invest, nurture and develop products and technologies that we can ultimately sell cash flow or keep for another manner.

That's really what we do.

Now, it's funny, the word "incubator" has come back in flavor.

But we've been doing this for a while.

So we've got quite a head start.

Now, that head start is both pro and con, because while we have the head start, we have products that came in a bit earlier, and that takes us a little more time.

New products out in the marketplace might get a little bit of a head start than we had originally.

But I think we've got some great traction.

We did make an announcement this morning about our ItiBiti product, and that we will be to some extent divesting of it, and we encourage you to look at that release.

But that's one of our first divestitures.

And we think it will be extremely positive.

I will also comment now on our investment -- or our loan to Poynt as a secured lender.

Last night we announced that we will be one of the formal bidders for the Poynt assets.

We believe that opportunity exists because as of their last year-end statements, they showed $21 million in assets on their books.

Now, again through a bankruptcy process, the patents are still intact and many of the assets are still intact.

So we believe there's a long-term value.

If you are -- know about Poynt or have seen the application, it's very easy to imagine that many of our products will fit right within Poynt.

That's why we lent them the money, because we wanted a larger business deal while they were getting into financing.

I will also comment that if you have read our financial statements, and I won't be 100% accurate, but I will do my best, that about 13 or 14% of the money that we spent last year was operational spend on the core business on our legals, on our deal mems, on everything.

The rest was invested.

So those that might come to us and say, well, look what you burned through, look at what we invested.

Now I will also comment that of all our investments today, we estimate that the risk that exists is very, very small.

We are talking less than 1%.

Or in or around, 1 to 2%, my apologies.

Less than 2%.

So if you think about what we are doing in a very volatile market, in a very volatile space, we have through its first year in investing those monies, 98% of the monies are still intact.

That's a pretty good track record off the bat.

Most of the companies look at 1 in 10.

So we're being very careful with your money and our money.

Where does that really bring us down in the capital markets?

We do continue to burn cash at this point in time.

Everybody's worried about it.

We're worried about it.

It's a concern.

But I will tell that you there are more deals that we have turned down than taken, especially in the US.

I will tell you, and many of the people who are in the investment industry understand that the rules are different, again in Canada and the US.

The way you can do an investment in a public company in the US is uniquely different than the regulations that exist in Canada.

So we are getting a lot of interest from US capital companies, some of which we can take and some which the regulations don't allow us to take.

Some which, you know what, we had to spend quite a bit of time understanding those opportunities, one which we recently realized was toxic.

So the key is we are spending the time.

Now we will continue to look to raise capital, both in the short term and the long term.

We do at this time and have had continual interest from the US capital markets for a spinout not only of Ortsbo but initially Intertainment Media into a US senior or national exchange.

That will come with the considered financing and will probably require some type of bridge financing to get there.

It's an expensive process, but one which we believe will add value.

I'm also going to bring up the question that's probably on many minds, rollback or consolidation.

We are not planning one at this time.

We are not planning one for Canada, let me put it that way.

It's not a consideration for Canada.

Now, if we are in the US national market, we will have to look at the opportunity at that time and with the prices and everything else, but Canada, we are not considering a consolidation at all.

People have been shareholders for years, for many years we had that on our ballots and our proxies, where the management was given the right to do that.

Last year we took it off.

We weren't planning on putting it on this year.

It's important.

We are shareholders too.

I always say that, but we are shareholders and we are concerned.

So we do have a lot of opportunities in the capital markets.

It's amazing how those markets have changed.

The money in the industry is no longer in Silicon Valley.

It's in LA.

It's in the entertainment industry.

Because that old saying that "content is king" is actually true.

The entertainment companies are investing money in the sector.

New York is backing the money, but a lot of money is coming out of LA.

We spend a lot of time in LA because there are a lot of interesting opportunities there.

So with respect -- let me quote again, with respect to spinout, our spinout opportunity is to look at INT first and then subsequently Ortsbo.

It's the way that the US bankers have suggested we do it to get maximum revenue and traction for Ortsbo.

Our plans are still the same.

Our plans at this time, and we remain steadfast that our shareholders will receive the dividends that we promised, but, again, I remind you, if we would have done it in Canada, we believe the results would have been less than favorable.

And as a proud Canadian, honestly, I apologize for that, but that's the way the situation was.

And our job is to protect the interests of everyone in this room, people who are watching, and our over 11,000 shareholders.

So right now, what I would like to do is give you a little bit of an update on some of our divisions.

So I will talk a little bit about Ad Taffy first.

Ad Taffy is a really cool technology.

You will hear me say that quite a bit.

Because it really does go from intent to action primarily from the desktop, and I believe we are getting to the mobile side as well.

But the idea today is you can imagine when you find something on a map today, that, yeah, it'll tell you the address, tell you a little bit of information.

Ad Taffy goes deeper.

It gets richer, it engages.

We are seeing a lot of opportunity in that space as GPS opportunities and mapping become more pervasive in the marketplace.

It was a project that we actually started with the input from Microsoft.

And we believe it has a significant amount of traction.

As you can no doubt see and instantly recognize that in a Poynt opportunity that would become an amazing add-on, instantly.

When we talk about DealFrenzy, the team at DealFrenzy has put a lot of effort, time and energy into finding unique spaces where daily deals and unique offerings will be pervasive.

Now, that market has changed.

We are cognizant of the change in that market.

It is a very low spend market for us because we want to get the bullets right.

The team that we have on board, as well as management, has years of experience in more traditional sides of that business.

At this point in time, is it, you know, an absolute amazing winner?

No, but it's consistently showing opportunities for growth.

And, again, sometimes you have to fire a few bullets to hit a target.

That's what we're doing with DealFrenzy.

We are focused on increasing revenues, and I should have said that earlier.

That is our key.

We are focused on increasing revenues across all of our divisions and getting returns that are normalized within any industry, not just the social media industry.

When it comes to Magnum, a lot of people say, well, how does Magnum fit in to the whole Intertainment strategy?

Well, this is where we started from, first of all.

Well, that's really not the best of reasons.

But if you understand where print is going, and where the technology of print is going, it really is the technology of marketing.

Many of you still carry business cards.

You do all things that you would normally.

Sure, you do a lot more online, but Magnum's core focus is in the legal industry, where there is a ton of printing.

But a ton in change and technology.

Many technology companies are coming to the print industry to sell their wares and introduce new products because that channel of distribution already exists.

So there is a huge opportunity for Magnum to become more than it is today.

And currently, Magnum is looking at some opportunities for acquisition and business combination that will give a multiplier -- a significant multiplier on their core business and on their EBITDA.

So there is exceptional growth in that industry, and exceptional opportunity to increase EBITDA in that industry but you have to be smart about it.

When we started that business, we were one of the first companies to vectorize graphics for the print industry.

So we understand the technology and how it connects to the Internet.

Magnum is doing a number of projects now that connect the two together.

It might be a product that you receive in the mail, it connects you to a website and gets you back something in print.

There's a lot of opportunity.

That industry is not going away.

Where Magnum has been very strong is not investing in large format printing presses because those are millions of dollars that you have to feed every day.

So it is an opportunity for growth.

It is an opportunity to increase technology.

And some day it may be a spinoff opportunity.

But today we see large growth opportunities in that sector.

When we looked at KNCTR and ItiBiti, we announced this morning that we've made a deal with a Toronto-based technology group to effectively spin out ItiBiti.

It's an excellent deal, we believe, for us, because what we have learned over the last year as well is while Magnum is a great operation company and has been standing alone for many years, really our C level team should not be focused on operating our assets.

We should be focused on our assets.

And as such, we brought Patrick on board, and we have really seen the light.

So by working with a technology group, we believe the value of ItiBiti and KNCTR will grow substantially and provide longer opportunities.

The other thing about incubators is you are not really an incubator until you start getting rid of assets.

Right? Think about it.

You are a hoarder.

If you keep buying these assets and bringing these assets in, until you spin them out, you're really not an incubator.

So this really starts to prove and validate our model as an incubator.

And The Sweet Card.

The Sweet Card is really part of a larger opportunity in our affinity marketing groups and some of the other things we're doing in sports and entertainment and e-commerce.

What we found out in the entertainment space, and especially in the music space, which none of us have to really be rocket scientists to figure this out.

The music industry is having challenges, right?

People don't pay for CDs anymore.

We might buy one -- I like to say we would all buy something on iTunes or a paid music service, but we have a lot of music that we collect, and we might collect individual songs and not CDs.

So artists are touring more and more.

And we've seen that.

And ticket sales are going up in price every tour.

So ideally the challenge is that artists can only tour so much, and prices can only go up so much.

Where are the holes?

That's what we look for.

Well, an artist wants to make money while they are sleeping, and fans want to have access to the artists.

Fan clubs are changing.

The Sweet Card has been designed to change a lot of the parameters in that industry, and it's getting significant traction.

We have record companies, management groups, talent agencies all coming to us, asking us how we can help them increase relationships with fans that will ultimately add more dollars to the table.

For those of you that might know the prepaid industry, it's one of the fastest growing industries in the world.

And for our purposes, we're focused on affinity branding with specialty brands, artists and celebrities where we know a fan base or a base of users already exists, and all we have to do is mine those users.

So that really covers off many of our divisions and what we are currently doing.

What I would like to do right now is hand off to Patrick Bultema, who will talk to you a bit about Ortsbo.

Patrick?

Thanks.

Well, thanks again for all of your interest and support.

Great to be here.

I have to confess, for the last 20-plus years, I'm kind of a confirmed start-up guy.

I absolutely love this business of emerging tech companies.

And when David and the board first approached me, actually, through the US investment community to talk about Ortsbo, I was really excited about what I think the opportunity represents.

One of the things that I've learned in my years doing emerging tech companies is timing is key.

You know, if you are ahead of the market opportunity, you can spend a ton of time and money before the market is ready to adopt.

And even in this entertainment space.

I'm actually doing a keynote at a conference tomorrow, and in the process of research, I was just looking at the background of this whole theme of language and the barrier of language and found one of the first ideas from Rene Descartes in the 1600s.

He actually suggested that we ought to create this universal language to overcome the language barrier.

Now, I would suggest that's an idea ahead of its time.

But I do think that Ortsbo sits at a very interesting point where we're seeing not only the Internet essentially providing unlimited free global communication but an awareness that language is this persistent barrier.

It's a huge barrier to kind of the economic opportunity and globalization that the market is increasingly demanding.

Okay, which key?

Down arrow.

Oh, there, that down arrow.

Down.

Thanks.

Again, we recognize that it's inherently valuable to make it possible for people to communicate across languages, and that's really our core premise.

It's a very simple premise of Ortsbo.

I tend to think simple, direct value propositions and premises are the best.

When you look at the global context, it just underscores the inherent value of what we are focused on.

Right now today, the fastest growing -- you know, again, North Americans, we tend to think of the Internet as this English language phenomena, and it really did get started predominantly as an English language phenomena.

But if you look at growth of languages on the Internet today, the huge growth is in languages that haven't been kind of the traditional core languages of technology and the developed world.

Spanish growing at -- over the last ten years, 743% of users.

Portuguese, I mean, who would have expected?

But Brazil, huge growing economy, incredibly active from a social media perspective.

Russian, Chinese, Arabic, on and on.

So what we are seeing is huge growth in languages other than English and a growing realization that that represents huge opportunity.

In fact, from Common Sense Advisory, they recently reported that the online opportunity, the addressable economic potential for online communications, Internet communications represents $44.6 trillion US,

only 33% of that addressable with English-only content.

So as we're talking with companies, it's no longer Rene Descartes ahead of his time, but the market opportunities saying this is a big issue that we have to address and resolve.

So Ortsbo, really, we aim to be this new dimension that removes the language barrier from the Internet, that unlocks the economic opportunity and potential of this globalization theme and trend that we all are recognizing.

Our focus is to enable realtime communication experiences across many languages to any end point and for a valued objective.

And there's some focus attributes, and these are things -- you know, I joined the company in March officially.

Did some advisory work before that.

But during the spring, we really focused on, what were the core attributes?

What were the defensible from our technology and innovation, but also in terms of the market opportunity, what were some of the core attributes that would not only give us competitive differentiation and barriers to entry, but that would also provide us with the opportunity to focus on economic opportunities?

And we realized that one of the focus attributes for us was social, casual-style communication.

We're not focusing on doing legal documents or doing UN communications.

Our focus is really on social, casual-style communication.

We are tuning and optimizing everything we do around that.

The second, that we are focused on things that have realtime characteristics.

It's a chat session or some things that are nearly realtime.

Some of the social media feeds, Twitter feeds, things like that.

So it's realtime in its characteristic.

We are also saying, what are places where we understand the context or the use model?

Because we know that we can further tune the experience if we know that somebody is doing in a customer care session, or they are asking for information on a product.

So if we can embed into a particular use model, that helps us further tune the experience.

And finally, we have done a ton of work in this whole area of tuning to specific content domains.

You have probably heard the example, or we have used the example fairly commonly of this, to illustrate, a word like "traveling."

Traveling means one thing if you are on a travel website.

It means something completely different if you are on the NBA website.

So understanding the domain, the use model and the context are hugely important to be able to tune the experience to really provide the optimal experience for the end customer.

And a lot of what we have done over the summer then -- so in the fall, we were really understanding what were the market opportunities.

In the summer, we were really saying how can we tune and optimize our technology.

And now in the fall, we are actually in the process of rolling out with a number of companies in these market areas around these focus objectives that really give us the ability to have a highly differentiated, high-value, realtime communication experience for our end clients.

So let me talk -- there's a -- And you can see some of this is already public, some of the patent filings and some of the invention that we are doing.

One of the key members -- We actually had some key folks join our technology team.

One is our VP of Technology and Products, who is an individual that I have worked with previously, Mance Harmon.

And then Leemon Baird actually heads up our core research activity, and Leemon has a PhD in machine learning out of Carnegie Mellon.

So we're doing a bunch of things to further enhance and tune and optimize our technology to be able to address market opportunities.

So let me talk about -- first, many of you are very familiar with things that we have done in the entertainment space.

A couple of comments there.

It's -- all of the visibility we have gotten in the entertainment space has been phenomenal, partly because it's really advanced the brand and generated a lot of momentum for the company.

It's also helped us really refine and understand what is the dynamic of what's going to be most engaging to customers.

Entertainment is all about engagement, right?

And so we've learned a tremendous amount as we've done things in the entertainment space, and many of you are familiar with the live and global platform.

We will continue to do some things in the entertainment space.

It's a branding and momentum building.

But much of our focus now is turning to how can we monetize?

What are the opportunities to really drive revenue and start the revenue growth of Ortsbo?

So again, great foundation, great momentum.

We'll continue to take that, carry that forward, but with a focus in three core areas.

So, again, as I looked, you know, we are trying to say, where is money changing hands?

Where is there a cross-language demand that already exists in this theme of globalization and where we can take those focus attributes and tune our technology and the products we create for the market to create order of magnitude value propositions for our customers and high gross margins and profitability for the company as well.

And three primary focus areas that we're focused on right now.

One is global communications.

You know, companies now in this theme of globalization are trying to figure out how do we effectively communicate with customers across this language barrier.

One of those areas that's particularly opportune for us is in the global customer care space.

Huge theme, how do you provide multilingual customer care, when in many cases, customer care has ended up offshore because there was high-quality, low-cost English capabilities.

But many of those offshore destinations don't actually have a lot of multilingualism that's readily available.

And so we make it possible, and you actually can see an example where we're actually embedded into customer care technology with the Ortsbo solution to make it possible for, say, an agent in the Philippines doing a chat session with a customer speaking German across that language barrier.

Huge industry.

We understand how there's real demand aggregation through some of the global outsourcing companies that are opportunities for partnership for us, where we can create an order of magnitude value proposition, not only because those multilingual agents are more expensive.

But there's also a hidden bigger issue, which is, if you need to add one agent worth of German volume, you can't just hire one German agent.

You actually have to hire a number of agents to provide the coverage and the -- to be able to deal with the variability of inbound service volume.

So we represent a tremendous order of magnitude.

You will see some customer announcements and some partner announcements shortly for the product that we already have in this market space.

Big $200 billion GPO or global BPO spend in that space.

In the US alone, again, just to put it in perspective, there are over 5 million people, people sitting in seats providing customer care.

So we recognize huge market opportunity.

Another is the challenge of companies -- and you have already seen visibility on things that we have done with some consumer cosmetic companies in New York City to be able to take the live and global model, but to apply it to market communications.

So already customers or companies are trying to say how can we do webinars or various more engaging media, new media oriented things to engage our customers worldwide but it becomes a real challenge when 67% of my customers worldwide are disintermediated by language.

So we are applying some of what we have learned from the entertainment space to be able to do global webinars with kind of language transformation on captioning and social media feeds and the ability to interact.

To also be able to put social media transformed on all of their different localized versions of websites.

One of the customers we are working with right now has 45 different national websites, 32 different languages, and they are trying to do realtime social marketing content marketing out of their US headquarters.

And it's a real challenge for how do they do that across all of these sites.

So it's an opportunity for us to transform, as well as to enable realtime communications.

Again, another huge market opportunity and space, and we've got a number of customer things that we will be announcing here shortly in that space.

Gamification is another theme that really represents an interesting opportunity for us.

You know, I think we all recognize not only is the game industry big, but it's rapidly growing, and one of the fastest growing categories is social casual gaming.

So it's where, you know, everything from Zynga games to Glu to Gameloft to Electronic Arts, all of these companies are attracting people to play with one another in social, casual ways, and part of the game is to be able to interact with one another realtime.

Increasingly, people who are playing those games are from all around the world.

How do you actually play on a team with someone who speaks Chinese and another person who speaks Spanish?

So one of our opportunities is to focus on transforming that in-game player communication so that they can communicate across.

We already understand the content.

We understand the use model.

We can tune our solution to create an incredibly high-fidelity experience.

And, similarly, in some cases there's realtime content in those games that needs to be transformed for the game to be able to have a reach, a global reach beyond the language that it was originally developed in.

Again, announcements that will be forthcoming here in the gamification.

And then the final area of focus for us is what I'm calling qualified or specialized social networks.

And these are social networks where there's already a cross-language urge.

I oftentimes have people say, well, why aren't you guys doing something with Facebook?

Well, the challenge with Facebook is for the overwhelming number of people on Facebook, all of my friends speak my language.

Otherwise they wouldn't be my friends.

So it is -- we are still in a bit of a timing issue where people don't have the general or the cross-language urge when you are in the general social network space.

But there are social networks where that cross-language urge already exists.

Travel social networks, some of the international dating social networks, some of the commerce social networks that exist that really have a global angle to them.

And we have a couple of customer announcements that will be happening there again.

We believe that over time, as the general demand grows for more cross-language capability on general social networks, we will leverage what we have done in this specialized category of social networks to be relevant in that kind of general space.

But you don't want to start there.

So we're starting where the market demand is and we're following the money.

That's another kind of key theme in all that we're doing.

And you will be able to see this here, but I wanted to at least be able to put this up, because what this represents is, on the right is a customer for a customer care where they would go on to a normal kind of web chat kind of session, and the Ortsbo technology fully integrated into that customer care technology, and the left is actually the agent panel.

If you want to see that actually live, go over to the Ortsbo booth afterwards and you can actually see how it works.

I have already talked a little bit about, you know, how valuable it is to enable agents to be able to do customer care across, you know, 50 plus languages embedded in the technology and process.

And we have a per seat pricing model that just makes a compelling value proposition.

High-gross margins for us, highly profitable business opportunity for us as an Internet software offering, but incredible value proposition for the folks that are providing customer care as well.

And again, one of the themes, one of the strategic approaches we are taking here is to really leverage partnerships of the outsourcers in this space to be able to get us the kind of fastest go-to-market opportunity.

Okay.

That is what I have got here, but I will be here afterwards as well.

And as some of you I've already chatted with know, I'm passionate about and enthusiastic to talk with you about what we are doing.

I have been very heads-down and somewhat quiet, really focusing on building this foundation.

And as David alluded to, one of the challenges is, when you're in the venture space, it's a lot easier because you just get to lay everything out in front of your investors.

In the public space, it's a little more challenging.

And so I'm enthusiastic now.

You have probably seen I have started to lean out now on some of the releases.

You will see me much more active communicating with all of you, with the market as you start to see the fruits of the labor of kind of the three stages that we have been in.

The initial stage of really focus, following what was the opportunity for Ortsbo, aligning and tuning the technology over the summer, and now this fall we are in the process of actually rolling that out into customer wins and successes that we will be getting you news on over the next weeks.

So we're not talking about months.

Over the next weeks we will be able to start talking about these customers going live in these three market initiatives.

Great. Thank you so much.

David?

Thank you, Patrick.

Again, Patrick will be available afterwards to answer some questions, and we can direct some of the questions at the end of the presentation.

I would now like to introduce you to Brad Parry, our CMO.

Brad has filled a number of roles within the company, as we all do.

But where Brad has really focused a lot of his talents is really being active in our portfolio investment companies.

And I would like him to come up and say a few words.

Thank you.

No pressure.

Thanks, David.

What I want to do, they asked me to come up and give you a quick update about where some of our companies are and some of the things they have done.

I think Herb touched on it brilliantly before.

Our investment philosophy really comes from the notion of finding quality management teams, finding teams that are experts in the space that they are and giving them the freedom to run their business without having the overhang of financial burden all the time.

So as we look for these companies, we look for, one, disruption.

We look for opportunity to integrate inside of our existing portfolio.

And we also look for ways to get out, as Herb mentioned before.

We always have an exit strategy, whether that be cash coming in or keeping it, whether that be spinning it out, or selling the asset, as we just announced this morning.

So what I want to do is just take five minutes of your time and give you a quick broad-based overview of some of the highlights that we've had in the investments that we've done.

If you look at our Velvet Red investment, Velvet Red is really about consumers' opportunity to get behind the velvet rope, to get behind the scenes and truly engage on unique Hollywood and social events.

They have just signed a deal with American Apparel and Jones Jeans.

They have actually produced over 90 shows at 30 minutes each of content.

So, again, the notion that the content plays a role within our existing portfolio of companies.

Think of our ItiBiti platform, which is a content push opportunity.

The other notion for Velvet Red is they have also signed a deal in Las Vegas where they have a show that runs three times a week in Las Vegas on TV.

So, again, greater brand exposure, greater opportunity for consumers to engage in that content.

Our investment in Lexifone, and I think Anthony has done a great job in probably explaining it to you.

If you haven't seen it today, I would strongly recommend checking it out.

They made huge inroads.

And Lexifone is a voice translation technology.

We have seen some fantastic results so far.

They are working very diligently in the Mexican marketplace right now, working with a lot of small businesses.

They are doing a tremendous amount of work in the Brazil marketplace, leading into the World Cup and the Olympics coming up.

So you will see a lot more news about that, a lot more opportunity with respect to the investment that we have made with Lexifone.

Shiny Ads, one of my personal favorites, which is a little bit off.

You think what is an ad tech company doing in this portfolio?

If you actually think about it, look at the generation that we just have really molded for the last ten years.

Look at ad words, look at LinkedIn, look at Facebook.

You have a generation of people who are used to building their own ads, buying their own media, and placing it themselves.

That's been great for the lower end, for the CPMs that are very low, but what about the premium inventory?

What about the opportunity to go on a CVS site?

That's where Shiny Ads plays a role.

So Shiny Ads has seen 26 new clients sign up this year.

They've got another seven to go before year end.

And they've had five months of year-over-year growth in the last quarters.

We look at The Audience.

The Audience, you have seen the articles that have come out.

Their unveiling was in November in the "New York Times" article.

One of the interesting features is that they deliver 5 billion impressions a month for their clients.

5 billion impressions.

That's a huge amount of impressions and ability to influence.

One of the key wins for them this year was being one of the lead strategic advisors for the Obama campaign for the election.

So again, we are seeing great traction, but, again, really interesting opportunities.

If you look at the context within Shiny Ads, we look at the audience.

There are parallels and opportunities for us to integrate the technologies from one within the others.

If we look at our Tunezy.

If you haven't had a chance to meet Brandon and Derrick, the guys at Tunezy have been unbelievable.

They have been with us now for a year, and they continually surprise us with their ability to win stuff.

I don't know if you saw the articles, but last week Derrick was in San Francisco and Los Angeles and he was competing for the Billboard Technology Innovation Awards, and they won.

What's really interesting about them winning is that the judging panel, two-thirds of the judges had investments in the companies that were competing against Tunezy, and Tunezy still won.

Again, we see the opportunity for disruption in the marketplace, we see opportunity for that to grow, and we see opportunity for Tunezy's platform to fold into a lot of our portfolio companies as we see them.

Did I miss anybody?

Cap That, how could I miss Cap That?

That's a huge one for us.

If you haven't had a chance to go and check out the materials that we have at the back of the room, Cap That just signed a deal with Interscope and with Assassin's Creed III.

I'm not sure if you're familiar with the game, but it's one of the most popular games in the marketplace.

So now what you can do is you can go online in the Cap That store and pick an image from the game or the trailers, and then take that and print it on anything that you want.

So, again, as a gamer if you look at this, so now your game console could have an Assassin's Creed print on top of your game console.

So, again, when we look at investments, we look for ways for them to integrate within the context of our existing portfolio.

We look for strong management.

We look for the opportunity for them to stand alone on their own and drive the business.

Again, drive the revenue back for us and bring the value back for our investments.

That's all I have.

David?

I know you want to hear David talk some more, so I have to get out of the way.

I'm around for the rest of the afternoon if you have any questions.

Thanks.

Well, now we get to the interactive part.

So we're here to take your questions.

And before we do that, I have done this before, and I have to do it again.

Please be advised that there will be questions that we cannot answer based on the rules that I explained earlier.

We apologize in advance but, again, there are rules.

So we will do our best.

So, Amanda, are we doing anything with a microphone?

Sorry, there you go.

Sorry, John.

Oh, there you go.

David.

David, everything sounds very exciting, but how do you make sure that you have enough money to see this through to the end?

That's a good question.

And as we mentioned earlier, you know, we are constantly getting opportunities from the US, some we can and some we can't take.

We did explain earlier that our initial foray into the US as a US-listed company will come with a significant financing opportunity, and we will look potentially for a bridge to that.

We also believe that within a short period of time, and, again, short-term when you look at the situation, that we will start generating significant revenues, both from Ortsbo and Magnum and some of our other divisions which should sustain us long-term.

Hey, David, I was wondering, can you give us any insight into when you may be getting off the Venture Exchange?

The sooner the better.

Well, you know, again, proud to be Canadian.

I think the Venture Exchange is a great place to start for us.

As I mentioned, we are looking at a senior and national exchange listing.

We are currently in the process of starting that paperwork, but it does take time.

The estimated time can be anywhere from 90 to 120 days.

It might be a little bit less or a little bit more.

I'm afraid that we can't pin that down.

But that's the general consensus that our US counsel has given us.

I'm sorry?

Well, again, we are -- sorry?

It would be better if you used a microphone because we do have people around.

Seriously, do ask the question.

Go ahead.

When is that start date?

We have already started the process of filling out the initial paperwork.

120 days max from now?

Again, we can't give you -- There are approval levels, so we can't give you -- the general estimate that we have been given from counsel is 90 to 120 days.

I think over the next few weeks, we will be able to give you further clarification.

I know that we have -- we also have questions coming in from online.

So, Amanda, do you have any questions?

The first question is from Trevon, who wants to know, investors have seen a 96% drop in the share price over the past 18 months.

How do you plan on restoring confidence to a market that has shown little faith in Intertainment?

That's a good question, and it's a very honest question.

I think that we are doing the best that we can given macromarket conditions.

We are delivering on a lot of the things we said.

I think the challenge was that the change from a Canadian to a US listing did hurt us quite a bit, and many of you know that we had a long halt during that period which did cause us some challenges as the TSXV reviewed an initial release.

Our key is to continue to deliver revenue and timely opportunities like we have with ItiBiti, like we believe we will with Ortsbo and with Magnum, to increase confidence from our shareholder base.

And hopefully the markets will respond as well.

It's not to fair to say we're alone, but it's not fair to say that we aren't responsible for our own situation.

But we are focused on building the business, building revenues, building returns, and building value.

That should, we hope, increase both confidence and an increased share price.

Jonathan?

Go ahead.

Yes, Dave, I would like to know about Magnum and your government contracts, if I heard you correctly, and what kind of presses and, et cetera, you have to come.

From the standpoint of -- I said we do focus on the legal industry.

So not the government industry, but the legal industry.

Court transcripts?

No, we handle most of the -- Jana or Al, top 25 firms, how many firms of the top 25 do we handle in the country?

Nationally about 20 of them currently.

And we are one of the largest single suppliers in the legal firm industry.

We have our own line of Magnum products, like pads and specific requirements that the court has.

You are welcome to go to our website.

We've got magnumprinting.com...

And you can view the products that are standardized to that industry...

And printing presses.

A range of small to mid-sized presses and -- one of our presses is a full-color press, yes.

You know what, do you want to take another question from Amanda, and then we'll take the gentleman's question?

I have a question here from Keith, who asks how do you plan to get the general public and revenue-driving contracts aware of your divisions and investments?

Again, I will give you insight into something that happened to us about two weeks ago, and it was very interesting.

We were introduced to a company in LA by one of the business management teams that we work with, a large company that works with talent and some of the entertainment community.

They introduced us to a company.

Their senior VP of business development sent an email back to our team saying that she had just reached out to her colleagues at Yahoo, her former colleagues at Yahoo, because she wanted to know how to get a hold of Ortsbo.

In some business sectors, we are already well known.

I think if you look at what we do, we are -- while our end products may face the consumer, we are not -- we are not a consumer-facing brand.

The ideal situation is -- we have over 11,000 shareholders of known record.

That's a considerable amount.

So I think we have done a good job of getting our brand out there.

I'm sure we can do a lot better, and I think as our products perform and gain traction, you will see a lot more activity in that space.

I understand that there's a minimum share value for the US market and I'm wondering how will you get there?

Well, again, you know, it's really interesting.

Our job is to drive the business, drive the revenue, drive the opportunity, and at the same time, make the market aware.

Ideally, we are not in control of the daily share price.

That's just not what a company does.

We hope that what we do reflects in that share price, and work to get more traction in the brokerage community.

So part of our opportunity and part of our mandate is once we have made some significant announcements with our US banker, that we will spend time in the US introducing ourselves to that community and hopefully that traction will get us an increased price.

It's a supply-and-demand equation.

Amanda.

The next question is from David Miller, who asks how do you respond to those concerned that Intertainment has overextended or perhaps been a little too active with its purchases over the last two years?

I don't think we've been over-active.

Again, it's easy to sit in hindsight and look at what we did now versus what we engaged in two years ago.

I think by what Patrick said today, it's become evident that we've had a lot of traction at Ortsbo, and Ortsbo has made some extremely amazing strides in what it's doing.

Has that resulted in firm contracts yet?

As Patrick stated, in the next coming weeks, you'll see those.

So at the end of the day, it's very -- I guess it's very difficult to look at what I call snapshot theory.

You are taking a snapshot of what's happening at a particular moment in time and judging everything on that individual snapshot.

I mean, people wanted us to move faster a year ago, a year and a half ago.

"How come you are not moving faster?"

So today, "How come you did this?"

The challenge is, we made those investments at a point in time where we analyzed what the opportunities were and where the market was.

The markets have changed.

Our programs remain the same.

So maybe in hindsight, again, if it was 20/20, we may have done things differently, but we are where we are.

How do we focus on getting from here to the next point?

That's the most important question.

And what we have done is focused on bringing great teams together, people like Patrick, expanding our opportunities with Magnum, looking at some of our other divisions like ItiBiti, our relationships that we can capitalize on Poynt to get us to the stage where we are not overextending ourselves.

I will tell you today, while there are some great opportunities out there, we do have a self-imposed moratorium.

We are not looking at other opportunities because we need to digest what we have taken on.

That's our key focus.

Get to revenue, get to profitability and then reinvest in new programs so that we can go to the next chapter.

Hi, David, how are you?

Good, how are you?

I guess one of my questions is, remember back last year when we did refinancing at $1.20.

And that company back then has also stated that they were willing to give you more.

Whether we take it then, instead of taking it now, we had a firm commitment saying, "Hey, I got more for you."

Well, at the time -- again, we invested -- management invested at $1.20.

If we had a crystal ball -- you know, but the whole situation, again, looking at a snapshot.

At that point in time, it was felt by our advisor, our boards, everyone around the table that taking more money was not the opportune situation because the expectation was the stock would rise and we would take more money at a different level.

Again, the challenge is hindsight is a wonderful tool, but foresight is what you kind of live on.

So unfortunately, yes, we did.

And as it turns out, that deal was a US-structured deal which would be a challenge to take today under the current rules.

And my second one was with all of these companies like Solomon and these other -- what do you call it, the analysts that I have been reading about hitting targets -- Solomon, I think, raised one to $1.60.

And then now there's $1.40

and a new one that came out at $1.20.

Are these people -- are they giving these estimates on the outstanding shares there are today, which I hope which would be better for us as shareholders not the reversal because those are no good.

And are these true?

Are these people -- is this a real vision they have for seeing the stock price?

You know, someone once told me, once is an anomaly, twice is a pattern, right?

Good statement.

The situation is that multiple analysts who are qualified and independent are running those reports, okay?

The company is not funding those reports.

So at the end of the day, they are being independently written.

You have to take everything with a grain of salt.

We are where we are today and our goal is to get -- they are looking at what they believe our value is in the current outstanding share capital.

And, again, to reiterate, we are not -- we didn't ask for it today.

You have to have a special meeting of your shareholders to create any kind of -- if it was a consolidation or anything.

We have one today.

I don't know about you, but I haven't seen anything, right?

Let's focus on the fact that we are not doing a consolidation and we are not doing a rollback.

We are looking to increase the price so that the minimum capitalization issues would not be as affected in the US if we are on a senior national exchange.

But what I will tell you is it is impossible for us to sit here and focus every moment of our time on the share price.

We would never get any work done, okay?

So the key is, you know, we all -- I guess everyone in the room who's been a shareholder for some time really felt that Facebook would be the transition event that would just capitalize and catapult everything to the next level.

It didn't happen.

And the markets have changed.

You know, I don't want to blame the US fiscal cliff.

We can talk about a thousand things.

The key is how do we execute our business plan to drive revenues, drive growth, drive profitability, which makes us fully sustainable and, you know, creates additional confidence.

Because we can come up here and tell you a lot of great things, and we deliver a lot of great announcements.

The key is, you are also looking at this time of year where, you know, effectively, you have tax-loss selling.

As someone pointed out, our share is down substantially.

Those that want to capitalize on tax-loss selling are doing that.

I will also comment that we have been meeting with the Canadian brokerage community.

Some significant new investors are coming into the market, but they are smart investors.

They are sitting -- some of these guys are sitting -- some of these people, not guys, but some of these people are sitting on the bid.

If you are sitting on the bid, the stock is not going to go up so quickly, right?

So people want to see if there's any weakness in the market, and they're going to capitalize on the weakness.

So the challenge is we are doing the best we can with the resources we have.

We have done things based on what the market indicators were at that time and, again, I will remind everyone, that of all the investments we made, approximately 13% or so, approximately, was used for operations.

The rest was invested.

And we're working at about -- again -- you know, please, you know, you can qualify this from the financial statements.

98%, we believe internally is still intact after one of the most tumultuous years that the market has seen.

That's not bad for a company this size today.

Do we believe that our value is higher?

Sure we do.

We come into the office every day believing that we should have increased value, and we are working towards a game plan that is long-term that should -- we believe will deliver that value.

Is that fair?

Let's just use a microphone, because we have people listening...

The most important one.

I run a roofing company and everybody -- all of our employees have BlackBerries...

We do a lot of demos and emailing and stuff, and I wish we had the Ortsbo app.

Because I'm Portuguese myself.

I deal a lot with Portuguese people.

It is a huge community.

I used to work for General Motors, I used to be a manager, and we targeted the Portuguese community a lot.

I found I had to buy a little iPod in order to sit there and communicate with some people.

It's a great -- Ortsbo is a great closing tool.

Thank you very much.

Again, the challenge is that it's free!

So how do you make money on free, right?

We all -- you can get branding on free.

You can get traction on free, but how do you make money on free?

You know, there's -- it used to be Pareto's law, the 80-20 rule, right?

In the app market, it's probably 99.9% and .1, right?

So we are doing these apps, we are doing these opportunities to engage consumers to build brand, but we are not going to see significant revenues at this point in time.

Where we are seeing opportunities for significant revenues is where Patrick has explained.

The answer is we have visited RIM, we have had talks with RIM.

There's lots of long-term opportunities with RIM.

But if I would have said in July or August, we are starting to have discussions in that space, you would have said, look at the company.

Look at what's going on.

Now over the last couple of weeks, people are pretty excited.

Right.

So we are looking at those opportunities and we continue to look at them, but we need to focus where there are revenue opportunities.

You know, everybody probably loves the fact that, you know, from an emotional standpoint that we deal with Disney and Marvel and all of these things.

I was told when we were introduced to Marvel that it takes up to nine months to get approval from Marvel to put your products in.

Disney made the call, and we had a one-day approval.

That was remarkable.

Remarkable.

Marvel has used us, and we are developing relationships with the actors that will bring us to other programs but, again, if it helps us build a larger brand and opportunities to get to commercial, that's great.

If it's a dead end, we're not doing it.

It just doesn't make sense.

A lot of our consumer efforts initially built brand but we have not seen revenue traction.

And it was very, very expensive.

You are talking in fairness, I will estimate here, again, estimate between a quarter of a million and half a million dollars a month to maintain the consumer growth that we were experiencing.

So let me repeat that again: between a quarter and a half a million dollars a month with zero return on the table.

How many people want us to continue those efforts?

Right?

So the key is no one is raising their hands.

So it's a suck and blow situation here.

We have to focus where there will be money.

And, in fairness, our board has been on that topic, as management we have seen that light, and I will really respect both Patrick and our Magnum team for focusing on that from day one.

And we have learned that lesson very carefully.

We know that we could bring half a billion people, in our opinion, to the table to use Ortsbo.

How much money is that going to generate?

And would you like us to spend $1 million a month?

Twitter had the resources.

They did it.

Facebook had the resources.

They did it.

Now one of the other questions that I will ask myself in giving an explanation, well, the question always comes up, how come Google hasn't bought you?

How come Microsoft hasn't bought you?

And remember, a lot of the companies that they buy -- and Patrick probably answered this way better than I do because he's come out of the US venture capital market.

They are from companies that they have already done business with.

We are this Canadian company who is public up north, who doesn't have a venture-backed situation.

So we are, I will also say that we are coming up against those two companies in certain opportunities.

And we believe if we win a few of those, we go on the radar screen.

Please keep in mind, that, you know, not a lot of these companies come venturing into Canada to look at small-cap companies that are publicly traded to buy the technology.

It just doesn't always happen.

What they do is they rely upon their network of what goes on.

I think, in fact, the people who backed Google backed YouTube, and YouTube became a Google company.

It's a lot about who you know and what you know, right?

I mean, Instagram, was it Insight?

Insight, and the guys at Insight were making $200 million or so on a $50 million investment as the deal was being signed.

So it's -- there's a lot of networking and spending more time in the US, in LA, in New York.

We are finding where those networks exist, and people like Patrick and the team that we deal with that brought Patrick to the table and brought us our US banking opportunities and brought us some of our legal opportunities in the US, they are introducing us.

Now one would say, why aren't they investing in us?

Because they run a $3 billion fund that doesn't invest in companies our size.

Unfortunately, they just don't.

But what they are doing is helping us to be introduced to the people who will bring great people and great opportunities to the table.

So we are doing the best networking that we can.

Amanda, do you have another question?

This is from Andrew Scott, who asks will Fan Talk be expanded to a sports team concept as in one place to go for all of your team player's information, instead of following just individuals?

Interesting question.

For those of you who don't know what Fan Talk is -- and Fan Talk is still a test.

So let me make that clear.

It's still a test.

We haven't seen the revenue opportunities just yet.

So it still is a test.

Fan Talk is the ability for a company or an organization or a website to congregate all of their social media in one space.

So their Twitter feeds, their Facebook feeds, their Instagram feeds, Google Plus all in one space.

And when you think about that, that's very valuable and important.

Companies for years have been sending people from their websites out to Facebook.

Facebook owns all the data, Twitter owns all the data.

They don't own any data.

And I can give you some quotes that would be astounding, like a new program for an artist opens up, and they start selling merchandise.

They send it out to the 38 million fans on Facebook, they get 80,000 views and 8,000 likes and they sell $800.

They send it out to an email list of 25,000 people and they do $40,000.

So the -- so the people are starting to think, I need to own my data.

I need to own my data.

So Fan Talk helps them do that.

Fan Talk also helps them to merchandise.

So it's still early-stage.

We are getting interest from sports teams overseas to look at what we are doing.

The answer to Andrew's question is likely, but we're not 100% sure yet because we need to see Fan Talk produce tangible revenue-oriented results.

Otherwise, it's just another free consumer service, which I don't think anyone in this room wants.

It's nice to see.

Nice to hold, but we want to see revenue.

Any other questions?

We have two gentlemen here.

One here and one at the back.

I'm just looking at time.

David, what can you tell us about the bid to acquire Poynt?

What are your plans if you do acquire the company?

Well, first of all, for those that may not know and I mentioned earlier, we announced last night that we are baking a bid for Poynt.

We have a well-funded private technology group in Canada who has come to us to partner with us on a bid.

So we're bidding both cash and our secured note for Poynt.

Our believe is that Poynt has a lot of opportunity to grow and their patents have a lot of opportunities for mileage and there is a relationship with Gladios and Wyland.

And we believe that could be very, very lucrative for us in the long-term.

But I think from an operational standpoint, we'd like to see Poynt get to where it was before this all happened and, you know, be a pervasive app in the marketplace, but we are looking at adding a lot of our own tools and other tools that would make it revenue-generating.

So from our standpoint, we think it's an opportunity to, one, buy today and spin out in the future.

Thank you.

And this gentleman had a question.

Thanks, David, all of this talk about free and waiting to see if the tangible revenues can be generated.

Patrick had mentioned some upcoming news or contracts that you have been working on.

Are these also deals that we have to wait to see if revenue will be generated, or are they already up-front revenue-generating deals?

I think you will see a combination of events.

I think you will see some -- in software as a service model, which the global customer care is, if I can make a comment, that is on -- revenue is generated on an ongoing basis.

But we might see some up-front revenues as we fine-tune the engines.

So and as we do things.

I want to talk about that for a second, if you wouldn't mind, Patrick.

There's been a lot of comments about our technology, and I -- I would suggest that you, you know, take a few minutes and talk to Patrick.

But our technology for our commercial side has been completely revamped.

It is completely proprietary.

The algorithms and everything we are doing to create commercial grade language services is well beyond anything that exists currently in the marketplace.

That's why Patrick and his team are getting so much traction so quickly because the demos are just literally blowing people's minds.

So the key for us is really what we want to have in Ortsbo is ongoing growing hockey-stick revenues, and that's getting more and more people and softwares and services using our products.

But, yes, we wouldn't mind having significant up-front revenues as well.

I can provide a little bit of clarification.

I mean, most of what we are doing is -- there's the bookings value, which is the annual contract value of a deal.

And then it will get prorated across the year, because it's actually a service that gets delivered, a software service that gets delivered throughout the year.

The revenues do get spread, even though you will have at least a contractual or accurate notion of what the booking value of the contract is going to be up front.

But if I'm not mistaken, we recognize revenue as it's earned.

As a service.

Right.

So run rates and recognized revenue might be significantly different, but they will normalize over time.

After you get through a period of time, everything starts to normalize.

So it is challenging at the beginning, and I completely agree.

We would love to land a contract that gives us $5 million up front.

Those are far and few between today.

Those are usually generally earned when you have a significant track record.

It's a little bit of the good news/bad news.

The good news is it's recurring revenue.

So, I mean, I have been in the software industry a long time.

It used to be you would sell a license and then just get a little bit afterwards.

So you got it all up front and then there was not a lot more to come.

The beauty of this is it's an ongoing revenue.

You are building this base that every year, you know, kind of reproduces again.

So aside from -- Can we get a microphone?

There are people online.

So we want to make sure that everyone is hearing online.

Your voice is booming.

So that's okay.

Aside from the initial revenue generated at the beginning of such deals, it's still a wait and see how much more revenue will be generated?

No, it's actually not.

One of the deals that's in process to the point where I know the contractual need -- again, we can't talk about yet.

It's a three-year contract.

So these are actually, you know, typically at least annual, if not multi-year contracts.

That's the beauty of -- again, it's a bit of the good news/bad news.

The good news is it's recurring revenue.

The bad news is it's spread.

And hopefully growing.

Correct.

And the key is, again, if you are walking away today, and I know we say -- we've said a lot today, but I want to really qualify things, everything has got a short-term/long-term approach to it.

Long-term is not next month.

Okay?

Long-term is generally beyond a year, if not longer.

Short-term is under a year.

So please don't judge us on what we're doing today or tomorrow.

We are trying to give you the tools that we can so you can make informed decisions, based on what we can disclose and how we will affect things on a long-term basis.

If we are trying to just deal in short-term, again, we do appreciate it.

We do -- we are shareholders.

We want to make sure that you have got long-term return.

But we can't affect the micromarkets from hour to hour.

We can't affect -- I hate to say this as CEO, the guy who watches the market -- I can't affect someone who downticks the stock in the last five seconds of the day.

It's now legal here to do so, which is sad.

Okay?

So the challenge is also, while we are bringing new volume to the table by meeting people and they are interested in the company, at this time of the year, I know they are spending more time on the bid than they are on the ask.

So -- because they believe, the people who want to move stock out from weak hands, they want to move it into strong hands.

So there's challenges.

We all understand that.

And we respond as best we can to the queries we get.

But our focus has to be long-term, with the view to what's happening on a daily basis, but we have to plan and execute on a long-term basis.

Amanda, do you have another question?

I'm only going to take a couple more.

This question is from Greg, who asks you have said little about the sale of ItiBiti and the news release this morning.

Can you comment, please?

Well, I think the news release says a lot.

I think it says a couple of things, one, that, you know, we've got a deal on the table for approximately $3.5 million.

We have a long-term opportunity to have a liquidity event if ItiBiti and the group that's investing in it is sold, and we'll -- we'll get a declining revenue share in the first two years, I believe.

Brad, it's 40% in the first two years and declines to 20% over the next few years and beyond.

So I think it's a huge opportunity.

We also have opportunities to continually bring new clients to the ItiBiti and KNCTR platform.

So we've got artists and entertainers that like the platform that want to do more.

So I think it's a significant opportunity for the company because it does validate that process, that mandate.

Invest, nurture, develop, and then decide what you do next with the asset.

We are now, by virtue of this deal, we are a true incubator.

I know you have a question and this gentleman and then yourself.

Hi, David, there are a couple of items have fallen off the radar, such as Kowango and O4O.

I was wondering if you could comment on them and if they're still on the table.

Absolutely.

Kowango is a really great product, but kind of fits inside of where Poynt is.

So we were looking for a mobile platform, and the Kowango opportunity might be more suited into the Poynt opportunity.

But at the same time, there are some partnerships that we have that have taken the Kowango concept well beyond where it was originally.

I think as we look to things like Poynt and beyond, we will be there.

But again, Kowango is initially a free service.

Okay.

O4O, initially a free service, right?

And the challenge we found with O4O, while it -- in fact, I got an email last night if we can help somebody that is a celebrity with some stuff that they are doing in China.

The challenge with O4O is people across the water are not spending $30 and $40 for a plug-in.

So, again, we are going to test series of products.

We are going to be excited about those products.

Right?

We might invest a little bit or a lot.

In most cases, very little.

Some of them will work and some of them won't work.

Now, O4O would be a great plug-in to Microsoft, but we are now looking at some of our other opportunities like Ortsbo as plug-ins to other commercial opportunities.

So again -- some things we're going to try.

It's like starting a new hobby or a new event.

We will try something new.

It may not last.

I apologize, but we will see what we can get in traction.

But from our core elements, we are seeing traction, and that is really important, we believe.

This gentleman had a question.

With Fan Talk, it sounds like it's a great media marketing tool, right, and you are concerned about revenues.

What is your clientele and is it just the social music media strong in promoting marketing music, and that's how you will make money, or is there other clients that you are looking at such as maybe a painter or that type of stuff to promote it in a real sense?

So that's a good question.

The question is about Fan Talk and where we see the market.

We see Fan Talk as part of our affinity solution program.

Affinity is people who have a general like of something innate.

So let's use an example of KISS.

Fans of KISS around the world do use Fan Talk.

So now where do we take our global affinity program, our Sweet Card program to the next level?

Would it be with someone like an artist and connect the fans together?

That's why we have to find the revenue points and the connections.

Sports is a natural gravitation.

But for Fan Talk to work, you have to have a lot of fans because you have constant information coming in.

If it would be a painter, for argument's sake, might get seven tweets a day.

It means it would update every three hours.

And is the revenue generating the sale of that?

If -- again, it becomes percentages, right?

So if you take something like the Sweet Card, okay, let's say you've got 2 million fans.

5% of those might be super fans.

Of those who are in North America and start the propensity to buy -- you've got to barrel it down.

We are now about the math and the revenue.

We love the programs that we develop, and they are great, and we know that our shareholder base -- sometimes our shareholder base knows before we even made an announcement, they are already trolling the net to see what's coming up next.

It's -- we're amazed.

But the fact is, please keep in mind that we will continue to test new products.

Some of them won't work.

Okay?

I talked to a graduating class several years ago, and I mentioned the year I graduated, New Coke came out.

Okay?

Now, I think Coca-Cola is way smarter -- you know, a lot of great people.

I don't know if smarter is the right word, but great people around them.

They brought out New Coke, and it failed miserably, right?

So you've got to look at the opportunities and say to yourself...

What we are not afraid of, and I think everyone in this room has seen this, we are not afraid of putting our name on a product and trying something.

And if we are going to be criticized for that, we are never going to grow.

Never!

So keep in mind that we will try.

We will do things that will work.

Some will not work or will not be revenue-accretive and may drop off, but we won't stop trying.

And when we do try, believe me, we are spending very little money to do that.

One other comment on that.

Oftentimes the process of innovation and trying, the technology is valuable and repurposed.

So in many cases, products that we've tried, we have reincorporated the technology but just in a different use model.

So this is part of the process of kind of innovation and really, you know, software companies.

A lot of what we have done in the entertainment space, we are incorporating now in commercial opportunities with Ortsbo.

That's very true.

One more question.

This is the last question we will be taking.

And it is from Ariel, who asks what is the anticipated business opportunity of partnering with Live Nation?

Is Intertainment to receive a percentage of incremental online sales?

Please elaborate.

Well, Live Nation is a company that continues to grow and go through development, too.

So we are not only working with people that we have worked at with Live Nation.

Now we're working with people who are transitioning to other businesses and from Live Nation and that industry.

So we believe, again, it's the artists model.

It's a very simple situation.

Artists can't tour 24 hours a day, 7 days a week, 365 days a year.

Live Nation has 350 artists.

Those artists want to globalize.

We are looking at opportunities with Live Nation, with their talent agencies, with their management teams to literally cherry-pick the best opportunities.

So we see in some cases we will be fee-based and in some cases we will be a percentage of sale.

That's a risk analysis on our part.

It may be not a great risk for us to take at the beginning.

But at the end of the day, eBay has done pretty well on taking small pieces of every deal.

So we know that the market for that does work.

So on behalf of the board, myself, the board of directors, our management teams, our senior management and all of our staff, I really want to thank everyone for coming out today.

Those that are online and watched our presentation, you know, we encourage you to be active.

We encourage you, you know, to be vocal.

We will take the good, the bad.

We deal with it.

But what we want you to walk away with today, if we might, is the fact that we are dedicated and committed to making this company a success.

I want to thank you.