The Getfugu story has some real players involved. The list of characters is too long to give proper credit. What you are about to read is my gleaning of what is pulished on the internet about Carl Freer and his current endeavor known as Getfugu.
The Getfugu, Uh, Carl Freer Story
Carl Freer founded Gizmondo in 2002, and was Chairman of the board of directors at Gizmondo Europe until he resigned his position in October 2005.
The company went bankrupt in February 2006, and Freer is currently engaged in re-launching the Gizmondo product, citing a potential launch in 3rd quarter of 2008
Carl Freer uses famous people to pump his companies:
Now, little more than 12 months after the Gizmondo console was launched at a party at the Park Lane hotel in London — where stars such as Sting, Dannii Minogue and Busta Rhymes were paraded in front of guests...
Carl Freer uses the pink sheets to generate cash by issuing shares:
In 2002 his firm made a bizarre leap: it merged with a carpet retailer based in Florida, Floor Décor. The improbable tie-up gave Freer what he wanted: Floor Décor shares were traded in America under the so-called pink-sheets system, so he could now issue new shares and raise money. The company that had once sold rugs in Tampa became Tiger Telematics.
Carl Freer burned more money more quickly than imaginable while heading up Gizmondo.
Freer’s company is in liquidation, having burnt its way through £160m in 18 months.
Carl Freer owns Media Power Inc.
In 2008, Freer founded a startup called Media Power Inc. In May 2008, a partnership was announced where Media Power would donate $5M over five years to Georgia Tech to further Augmented Reality research.
Media Power Inc owns MagicTech a 3D gaming research and development firm teamed up with GA Tech.
Dr Jon A Preston headed the development:
Dr Jon A Preston
Magitech (Director of Embedded Development) Atlanta, GA
Developed hardware, user interface/shell, and operating system for augmented reality, mobile, and handheld game devices. (GAME DEVICES!)
This research looks more like Gizmondo type research than Getfugu research.
Upside down expenditures: Look at the money spent on the sales force verses executive pay, professional services, and consulting.
In 2009, SG&A included $1,320,554 in salaries and wages, $9,714,111 in professional services and consulting, $1,735,000 in Board fees, $112,303 in overhead and corporate costs, $111,725 in travel and entertainment and $49,069 in sales, marketing and other expenses. The salary and wages included $118,895 in cash compensation and $787,250 in stock compensation for the CEO. Professional services and consulting consisted of $738,049 in cash compensation and $9,000,583 in stock compensation, and included $4,529,750 to investment banking and investor relation firms, $1,260,500 in consulting fees to founders and others assisting in capital raising efforts, $3,208,333 for consulting services relating to mobile content in the entertainment industry, and $241,824 for legal, accounting and compliance services. Board fees consisted of $45,000 in cash compensation and $1,690,000 in stock compensation to a Director and Chairman of the Board.
Carl Freer owns half of Getfugu
Madero 10K 12/31/2008
We were incorporated in the State of Nevada on March 14, 2007 under the name Madero, Inc. On August 29, 2008, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Mike Lizarraga (our then sole director, and our former President, Chief Executive Officer, and Chief Financial Officer), and Media Power, Inc. (“MPI”). Pursuant to the terms and conditions of the Stock Purchase Agreement, MPI acquired 48,000,000 shares of our common stock (this number is post 12 for 1 forward split which was effectuated on January 23, 2009), or approximately 48.07% of our issued and outstanding shares of common stock from Mr. Lizarraga.
(In exchange for what? Madero states that it was in exchange for $264K in their 10Q dated 09/30/08).
On August 29, 2008, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Mike Lizarraga (our former sole director, and President, Chief Executive Officer, and Chief Financial Officer), and Media Power USA, Inc. (“MPI”). Pursuant to the terms and conditions of the Stock Purchase Agreement, MPI acquired 4,000,000 shares of the Company’s common stock, or approximately 48.07% of our issued and outstanding shares of common stock from Mr. Lizarraga. The transaction contemplated by the Stock Purchase Agreement closed on August 29, 2008. MPI utilizing its working capital, paid in consideration for these shares $264,000.
Carl Freer sold half of his shares as of 03/04/2009 and now owns 22,495,032. He is still the largest beneficial owner.
Getfugu is making excuses for why Carl Freer is still a part of Getfugu.
Through his role as co-founder and the single largest Company shareholder, Freer is considered to have management control in accordance with SFAS No. 57. Subsequent to June 30, 2009, Freer executed an employment agreement with the Company and assumed the title of Chief Futurist. In this role, Freer will help lead the development of technical advancements necessary to implement the Company’s business plan.
The plot thickens: Freer owns more of getfugu than meets the eye:
As of June 30, 2009, the Company received advances totaling $141,500 from Newport Financial Investment, Inc (“Newport”). Subsequent to June 30, 2009, the Company was advanced an additional $372,166 from Newport so that the advances outstanding totaled $513,666. Newport is an affiliate of the Company as Freer owns 50% of Newport.
OOPS. Sorry, we misplaced $8M in debt last quarter and 2M shares. You have got to be kidding me. This is just a peek of what is to come.
On July 27, 2009, the Company received a comment letter from the staff of the Securities and Exchange Commission (“SEC”). As a result of this letter, the Company re-evaluated its accounting for the issuance of 15,937,499 shares of Common Stock for services during the three months ended March 31, 2009. Accordingly, the accompanying financial statements for the period inception to June 30, 2009, reflects a correction of an error in the number of and the valuation of shares issued for services during the three months ended March 31, 2009. Following is a summary of the net effect of the restatement:
· Increase of shares by 2,062,489 to reflect 17,999,988 shares actually issued
· Increase par value of Common Stock by $8,250 and additional paid-in capital by $7,806,562
· Increase expenses and Net Loss by $7,806,562
The Company will restate its Form 10-Q for the three month period ended March 31, 2009 to reflect the correction of this error.
Get ready for the issuance of stock:
On January 23, 2009, we amended our Articles of Incorporation to increase the number of authorized common stock, par value $0.001 per share, from 75,000,000 to 500,000,000. On February 11, 2009, we conducted a forward split of our Common Stock whereby every one issued and outstanding shares of Common Stock was automatically split into 12 shares of Common Stock.
There is no evidence of any patents assigned to Mara Group Ltd, Madera, or Getfugu. In addition there are no patents containing the words mobile, phone, search, commerce, advertising, ARL,VRL,GRL, and augmented reality that are assigned to Mara Group Ltd, Madera, or Getfugu. The only reference to the patents is missing exhibit A.
You know? It's possible that Carl Freer has decided to walk the straight and narrow. Getfugu surely has some big hitters as a face for the company. Moreover, they have hired a highly respectable accounting firm. I really can't see how money can be siphoned off as happened with Gizmondo, but my gut feeling is that a Zebra can't change its stripes. Freer created the biggest corporate disaster in the UK, and he is here developing a firm that sounds an awful lot like Gizmondo. Even so, a careful and informed investor may be bale to make some money here. I doubt that Mr. Freer has a goal of 80 cents a share.
Disclosure: Long GFGU