GrooveVC Community Update as of January 31, 2010
As of January 31, 2009, GrooveVC Community participants have now increased to a level (1382) that our research suggests could be adding over $12,000 per day to Vertro’s bottom line during the month of February if the weekly click revenue averages are in line with what we experienced with control group #2 in the experiment we undertook during the due diligence process. If the numbers above prove out, the searching/shopping of 1,382 Groove participants would be adding more than $1,000,000 to VTRO’s revenue during the first quarter of 2010.
GrooveVC has typically reported the total percentage of shares owned by our members who report each month. We will no longer solicit or distribute that information while Vertro remains the focus stock for two reasons 1) we have a very small percentage of our community members who were volunteering the information and 2) we have no control over the buying, selling or voting of the shares owned by community members and do not want to give the impression that we do. A community member (attorney) with relevant securities experience has sugested the nature of our online community is such that we may bear some risk that we could be deemed a “control group” and thus subject to the 13(d) filing requirements if our member’s holdings were to exceed 5% of Vertro’s outstanding shares. While we are confident that our sharing of information and ideas would not rise even close to that level as defined by the regs, out of an abundance of caution, we will discontinue the practice of soliciting this information from our members at this time. Our final note on shareholdings is simply that our members now hold more than they did last month, the reported holdings are still below 5% and and we are not aware of any sales activity since the last report.
The number of active GrooveVC community members continues to increase each month and we expect that the revenue generated by our searching/shopping should be increasing commensurably. While we have no means of measuring the actual revenue by or impact of our members, anecdotal evidence suggests that we should have an impact on Q4 of 2009 that is well into the six figure range. If our community continues to grow and our members continue to use Alot.com daily to search/shop online, it is conceivable that we could be adding revenues for Vertro at a seven figure clip in the very near future. Keep searching/shopping and spreading the word. We believe your patience will be rewarded soon.
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