We are looking for moderators. If you would like to help moderate this board, please use the 'request to moderate board' link at top left and you will receive a confirmation that you have been added as a Co-Moderator. As a moderator you will have the ability to oversee discussions and make sure all posts are relevant.

You will also have the ability to add an advanced description for the stock. This is particularly useful if there are aspects of the company that you want to highlight and help others learn about the company's objectives. Photos and pictures are welcome. Don't be shy. Become an integral member of GEO's Culture

Exactly -- that is why I want to see them diversify away from the game apps and bring the other platforms up to a higher percentage of revenues.  They even mention that in their annual report -- that they anticipate the percentages from the other forms of revenue will increase this year in respect to their gaming app revenue.  However, they do not give any specifics as to what those anticipated percentages will be.

So, I am waiting for a further decline in their stock price and an announcement as it relates to securing customer contracts that are either new customers for the game apps or, especially those within the other fields they are in.

Appreciate your insight and time on this as well.  Hopefully, this dialogue helps us all make some money on this company at some point in the future.

 thc67

I think the information here below is very important. Why? Because you can make some conclusions out of it. One of the conclusions is that they have to get more revenues outside Europe. Another conclusion would be they are depending to much on two customers. These are risks that have to be considered before making an investment. 

Source: 10K - F12/F13  

At December 31, 2009, the Company had 92 telecom carriers, resellers, distributors and general corporate customers compared to 70 such customers at December 31, 2008.  For the years ended December 31, 2009 and 2008, resellers and distributors represented approximately 49% and 56% of the Company’s revenues, respectively.  

For the year ended December 31, 2009, 97% of total revenues were generated from forty-five European companies (of which one customer accounted for approximately 48%, and one customer accounted for approximately 22% of total revenues), and 3% from twenty-eight U.S., Asian, Australian and South American companies. For the year ended December 31, 2008, 83% of total Company’s revenues were generated from thirty-nine European companies and 17% from twenty-five U.S. and Asian companies.  

At December 31, 2009, trade receivables were due from 54 customers. Of these, three customers accounted for approximately 47%, 27% and 15% of the trade receivables, respectively.   At December 31, 2009, 19% and 45% of trade receivables were aged within 30 days and 120 days, respectively.  At December 31, 2009, the average age of trade receivables from all customers was 128 days as compared to 83 days at December 31, 2008. The average age of receivables from the Company’s four largest customers at December 31, 2009, was 138 days.

I would have to agree with you -- I have been watching them for months now without committing -- acutally waiting for a pullback similar to this.

Would like to see it drop closer to $1.00 comparable to what 3M paid to get in.

Based on their Annual Report, it does look like 2010 could be a great year for them revenue wise.  I like the fact they are moving into other arenas and not focused solely on gaming.  Though gaming will be good for them, the other apps should enhance their offering, their diversity of revenue and provide buffers should part of the economy continue to struggle.

Would like to see them focus on the China market as it relates to their medical apps -- huge market potential there.  I have invested recently in MDCE which is a start-up (somewhat anyway) that is focused on the medical market in China -- I think ALIF could be a player there too, espeically with their production in Hong Kong.

One concern area I have with ALIF is more dillution of shares should they need to raise more capital.  My hope is that 2009 was the year for that and 2010 is the year for growth.

Look forward to other thoughts on ALIF from everyone.

Where is your entry price?  What estimates are you getting in terms of discounted cash flow? etc.?

thc67

I didn't buy any shares yet but I am willing. With 3M investments on board I have faith that they can introduce the already mentioned applications with great success. 

Page 10, of their latest 10K refers more of their cooperation with 3M.

That's right - - I knew one of them doubled from the previous year.

 thc67

The operating expenses (G & A, R&D and Sales & marketing) almost doubled.

R&D was 50% higher then in 2008.

IMHO they  deferred the additional $4.8 million in revenues and respective potential profits to 2010 because this value would most certainly figure in the receivables which was the main issue before the ER.

The stock tanked with the fall of the net income, but I believe it would have fall much more if this 4.8M  were add to the, already large, receivables position.

Take care. 

Veggix 

Dutch,

I sold because they are not excelling in transparancy (who expected a Q4 loss?) and the stock is taking a short time dive.

I will get in again as soon as the stock has a clear uptrend again.

Better safe than sorry.

Xantu

...the most obvious thing for an investor is to buy the future...not to sell the past

In addition to the mobile game business, in 2010 we will focus on mobile business and lifestyle applications.  We are currently preparing and developing new mobile business and lifestyle products in the following fields:  

- Mobile health care and health monitoring for diabetes

- Mobile security, digital watermarking, and virtual reconstruction of objects

- Augmented reality and mobile image recognition

- Mobile green technology, environmental protection monitoring, and control applications

 I was reading their filing and I hope I can buy a small position tomorrow between $ 1.00 - $ 1.10.

Once I had these shares but I sold them because I thought I can make more money with another investment, but I am sure this one will work out also so I am going to buy them back.

I hope you're right, Dutch. I will wait for a few days till the price bottoms and then take a long position again.

Artificial life got money in advance but they didn't deliver their product or service yet.

Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, Artificial Life sells and receives payment for preinstalled mobile games before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.

So Q1-results could be interesting!!!

When I read the press release, mr. Schoneburg tells us that 'he deferred an additional $4.8 million in revenues and respective potential profits to 2010'. This represents $0.07 per share!

My questions:

1. Why does a company defer from one year to another? Logically this would be when they expect a lower profit or even a loss in the next year.

2. Where in the financials presented, can we see this 'deferring'-move?

3. Is this 'deferring' in the accounts legal or will there be an amendment on the 10-Q filing soon?

I don't like lack of transparancy, so I sold my shares at the moment.

Comprehensive new Corporate Fact Sheet:

http://www.artificial-life.com/alife/images/pdf/ALIFFact.pdf

Only few (historical) financial data

Xantu

Whitetiger,

Just a few months ago (oct 26th 2009), they had the capital injection of 3M (6mio$). So, to me it seems unlikely that they need money in the short term.

The company is in a hot sector of 'apps' and recently announced their 2010 strategy (no guidance though). They also recently announced their uplisting plans from the OTC market in Germany to the Entry Standard Segment of the Frankfurt Stock Exchange.

Finally they also revealed their 'download statistics over 2009' in jan. So that could be used for EPS estimates.

Greetz.

Xantu

Liquidity and Capital Resources

As of September 30, 2009, we had a working capital surplus of $20,117,470 and stockholders' equity of $39,181,337.

Through September 30, 2009, we completed a private placement raising total cash proceeds of $2,072,950 through the issuance of 2,697,941 shares of common stock to a number of investors. As part of this placement, one party received 100,000 shares and warrants to purchase 100,000 shares in satisfaction of $66,000 of accounts payable.

In October 2009, the Company sold 6,447,491 shares of its common stock at a price of $1 per share, for aggregate consideration of $6,447,491.  We are also in discussions with other potential investors about investments for the fourth quarter of 2009.  However, there can be no guarantees that such funds will be available on commercially reasonable terms, if at all. If such financing is not available on satisfactory terms, we may be unable to expand or continue our business as desired and operating results may be adversely affected. Debt financing will increase expenses and must be repaid regardless of operating results. Equity financing could result in a substantial dilution to existing stockholders.

We have borrowed funds from time to time in the past from our chief executive officer, Eberhard Schoneburg.  As of September 30, 2009, we owed Mr. Schoneburg an aggregate amount of $981,877, as compared to $737,771 at December 31, 2008.  During the three months ended September 30, 2009, Mr. Schoneburg advanced deferred salary of $111,328 to the Company.  The advanced funds bear interest at a rate of 5% per year and are secured by the assets of the Company.  

We expect that cash flow to be generated from remaining 2009 and 2010 operations and additional financing through various sources will be sufficient to fund the Company’s operations, working capital and commitment needs for the next 12 months.

Economic conditions in the United States and in foreign markets in which we operate could substantially affect our sales and profitability and our cash position and collection of accounts receivable.  Economic activity in the United States and throughout much of the world has undergone a sudden, sharp economic downturn in 2008 and 2009 following the housing downturn and subprime lending collapse in the United States and globally. Global credit and capital markets have experienced unprecedented volatility and disruption. Business credit and liquidity have tightened in much of the world. Some of our suppliers and customers may face credit issues and could experience cash flow problems and other financial hardships. These factors have had a substantial impact on the timeliness of receivable collections from our customers. The Company cannot predict at this point in time how this situation will develop and whether accounts receivable may need to be written off in the coming quarters.

Extremely bullish on ALIF too!

I think they will post an astonishing quarter.

This stock should be trading at least $4 now .

Clearly needs more attention.

Maybe they could boost their sales even more if they start developing games for CECT-phones (the Chinese copy of the I-phone).

Artificial Life Reveals Updated Statistics for iPhone Downloads

The Company announced that as of December 31st, 2009, it has produced and released 24 games for the iPhone and iPod touch. So far, the top title was downloaded for close to 2.1 million times, the second most for over 1.5 million times and the third, which was launched in early December, 2009, achieved over 1 million downloads in just one month. The average number of downloads per game was about 0.28 million. Paid iPhone games were sold at between USD 0.99 to USD 4.99 with an average price per game of USD 2.14.

The number of iPhone game downloads generated was approximately 6.8 million in total for 2009. In comparison, the Company sold approximately 16.2 million mobile Java games in 2009 worldwide.

8 or 33% of our games have hit the #1 download rank in a total of 24 countries. 11 or 46% of our games reached Top 5 rankings or higher. 17 or 77% of our games reached the Top 10 download ranks in 56 countries or 77% of all countries in which the games were offered. 21 or 88% of our games have reached the Top 50 and 23 or 96% of our games have reached a Top 100 download ranking or higher. Considering the many thousands of games offered for the iPhone, the Company considers the top download rankings and the overall download numbers achieved a major success and confirmation of its product strategy and its high product quality.

15 games have stayed in the Top 100 for over 30 days, 9 games for over 90 days and 6 for over 180 days. Our longest continuous Top 100 ranked game has been in the rankings for more than 1 year already.

Among the produced games, 16 are based on licensed and branded intellectual property from a variety of licensors while 8 games are based on Artificial Life's proprietary IP. The games have been sold in a total of 72 countries worldwide. The distribution of game downloads by regions is: 54% in North America, 32% in Europe and Africa, 9% in Asia Pacific, 3% in Latin America and 2% in the Middle East. The Top 5 countries in terms of number of downloads for our products are: United States, United Kingdom, Germany, France and Australia (with 48%, 11%, 5%, 3% and 3% of downloads respectively).

The best performing game categories were racing and adventure games of which 10 of our games have achieved the Top 10 rankings.

The Company also announced earlier the release of two new iPhone games in the first month of 2010 on the Apple App Store: Red Bull Racing Challenge and Spartacus: Blood and Sand - the official game for the upcoming new TV series from Starz Media.

"2009 was a great year for us in the iPhone business. With a total number of nearly 7 million downloads, we have over-achieved our own aggressive target by nearly 2 million downloads. But not only the number of downloads is convincing, we have also achieved top rankings for nearly all of our games. This is remarkable considering the ever increasing number of apps and games available on the iPhone. 2010 has started as good as 2009 has ended. We have already released two new top titles in January: Spartacus: Blood and Sand, and the new racing game for Red Bull Racing. Both are premium titles. In 2010 we target to produce at least one new top game title per month. And in this first quarter of 2010, we have scheduled to launch our first massive multiplayer online iPhone game for Linkin Park. This game will set new standards for the iPhone platform," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

MAYBE my projections are too conservative for last year and the coming years. Who can help me to analyse this company and make some assumptions?

 The last news concerning Artificial Life is that the company lauches mobile games with China Unicom. Playing mobile games is hot and cool and the market value of China's burgeoning mobile phone game market is forecasted to be RMB 2.68 billion (or USD 394 million) in 2010 and may reach RMB 4.21 billion (or USD 619 million) in 2011 according to statistics released in 2009 by Analysys International.

I think they can produce an EPS in 2009 between $0,25-0,27. The coming years look more promising and a growth of 40% or more is possible.

So EPS in 2010 and 2011 would be: $ 0,35 and $ 0,50. At the current price of $ 1,43 there is room to climb to $ 3,00 year end. With an uplisting in 2011.