GREAT BARRINGTON, MA / ACCESSWIRE / September 18, 2020 / To the Management and Board of Director of Tapinator, Inc.,
Over the last three years, you have had more than $3 million invested in the company at $19.20 per share. In addition, I personally invested another $375,000 in the company at about $17. The stock is now less than $4.
The Shareholders want to know what have you done with the money?
The Shareholders want to know how much of it have you paid yourselves in compensation, benefits, bonus, perks and stock compensation?
The Shareholders want to know how many new games were created in house?
The Shareholders want to know many new games have been "bought"?
The Shareholders want to know how many of these new games have proven to be highly profitable?
The Shareholders want to know how many new areas have you dabbled in? (i.e. horoscope, dot to dot, Art Auction etc etc etc.)
The Shareholders want to know how many of these new areas have been financially successful?
I understand that in law school, they teach new lawyers that they should never ask a question that you don't know the answer to.
Well, although I am not a lawyer, I am an accountant and they taught me in Wharton and in my 40+ years of completing more than $2 Billion of transactions, to know the financial answer to any question as well. So suffice to say, I know the answers to these questions but I don't think the other shareholders do and they should know the answers to these questions.
What the shareholders who own nearly 80% of the company want to know, WHAT HAVE YOU DONE FOR US?
We would like Management and the Board to write up a summary of how you have earned your compensation over the last three years?
We would like to know what the management is doing for the more than $25,000 per month salary plus benefits, plus bonus plus stock compensation EACH??!!
Having carefully analyzed this company for the three years I have been an investor, I cannot come up with one thing that you have been successful in accomplishing that has increased the operating profitability of this company.
You have not done one acquisition. You have launched very few games let alone any one successfully. Even the newest game that you launched seems to not be doing that well. In the recent Press Release announcing second quarter results, with respect to SPEED-Head Up Solitaire, Ilya is quoted as saying, "However, we believe that we need to achieve higher player lifetime values in order to scale the product from a paid marketing perspective". This does not sound like it is doing too well, does it?
Another point that you mention in the Press Release of , "the initiatives we began in 2019 to focus on LiveOps both continue to pay off". If so, how come year over year revenue for the second quarter is down approximately 13%?
How many quarters are you going to tout "best bookings" knowing full well that they do not have anything to do with current quarter's revenue nor operating results? They are a prepaid liability where future customers are potentially paying you in advance for services that you have to provide in the future. Meanwhile, you are using the cash that is paid by our customers to pay yourselves compensation, benefits, bonus, perks and stock compensation and creating a larger net negative balance sheet (e.g. Total Liabilities minus current assets).
Shareholders want to know what has Management done over the last three years that they can point to and be able to qualify and quantify as a successful product launch.
Shareholders want to know what this management team does all day to help improve results.
We look forward to finding out WHAT YOU HAVE DONE FOR US?
Yours truly,
David W. Unger
Shareholder of 21,875 shares of Tapinator, Inc.
CONTACT:
New Hope Capital
David W. Unger
413-645-3357
SOURCE: New Hope Capital
View source version on accesswire.com:
https://www.accesswire.com/606653/Activist-Shareholder-of-Tapinator-Inc-Asks-Management-What-have-you-done-for-us
