Near as I can tell, Luxeyard (OTC:LUXR) has recently acquired a $12 million+ valuation on the basis of (1) having a website, and (2) having some members, and of course (3) hiring a stock promoter. What the company does not have is money; current assets are roughly $300k, and roughly equal to current liabilities, and the company's recent audit included a going concern notice.
It will be interesting to see whether the recent hot market for equity IPOs is followed by a hot market for more microcap Internet companies with essentially zero revenue, like this one. I sure hope not.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.