At iGenii we:
Regulation Fair Disclosure
Regulation Fair Disclosure, also commonly referred to as Regulation FD or Reg FD, is a regulation that was promulgated by theU.S. Securities and Exchange Commission (SEC) in August 2000. The rule mandates that all publicly traded companies must disclose material information to all investors at the same time.
The regulation sought to stamp out selective disclosure, in which some investors (often large institutional investors) received market moving information before others (often smaller, individual investors).
Regulation FD fundamentally changed how companies communicate with investors by bringing more transparency and more frequent and timely communications, perhaps more than any other regulation in the history of the SEC.
Most of the corporate announcements are issued in press releases or during the conference calls and are summarized at websites.
Reg FD is now also a moving part for Company sponsored websites. Small Cap companies have limited capital resources and controlling costs is a major function of developing and growing a successful small cap venture. One of the most under-utilized areas of functionality is communications and awareness. The ability to quickly and broadly disseminate information to the investing public is paramount to the success of a small cap company.
Now the web presence can be a tremendously effective tool and can allow small companies to compete on the very same playing field as the corporate giants. The equalizer is the website. The search engine optimization of that web site will determine how broad the communication can be. The knowledge of how to keep the website in full Reg FD compliance can allow for a company to greatly reduce costs of their public dissemination of information. Creating a viral effect for your news is quite effective in gaining shareholder base and increasing share value.
SEC Insights - July 2011
UPDATE - The Securities and Exchange Commission’s XBRL Mandate
By Brendan Nolan, Assurance Services and Alan Markowitz, Partner - Assurance Services
On January 30, 2009, the Securities and Exchange Commission ("SEC") issued rules mandating public companies to provide their financial statement information in Extensible Business Reporting Language ("XBRL") interactive data format. Compliance with this mandate means that in addition to their existing EDGAR filing requirements, companies must attach an XBRL version of their financial information as an exhibit to their SEC filings. Companies must also post the XBRL exhibit on their corporate website by the end of the calendar day that they submit their filing or are required to submit their filing. The XBRL requirement was phased in over the last two years, based on the registrant's filing status.
As of June 15, 2011, the third phase of the SEC’s mandate requiring all public companies, including foreign filers, to provide their financial information utilizing XBRL took effect. This phase impacted all remaining public companies (which are companies that are not large accelerated filers) and beginning with the first quarterly report on Form 10-Q that contains financial statements for a period ending on or after June 15, 2011, they now must attach an XBRL version of their financial statement as part of their SEC filing. The SEC’s mandate applies not only to annual and quarterly reports but also other filings, including transition reports and Form 8-K which include previously issued annual or quarterly financial statements. Also after June 15, 2011, newly public companies will become subject to XBRL requirements for the first quarterly report on Form 10-Q or annual report on Form 20-F or 40-F, for foreign filers, due after they become public companies.
eXtensible Business Reporting Language (XBRL) is an electronic markup language for the purpose of corporate business reporting over the internet. Every publicly traded company is mandated under Security and Exchange Commission’s rules to report their 10Q’s and 10-K’s in XBRL format as of July 15, 2011.
iGenii wants to capitalize on this opportunity and create web based service (“cloud computing”) that would allow data compilation by reporting entities and data mining by financial firms. This window of opportunity could be very short before other developers decide to enter this lucrative market, therefore iGenii is looking for investor to form Joint Venture, where for investment of $10 M investor would get 20 percent share. $7.5M would be spent on product development, 2M on sales and marketing and $500K on administration.
1. Today no such integrated software exists on the market.
2. Only a very few can provide data compilation service presently, fewer than six(6) can provide a service that can convert financial data into XBRL format from Word/Excel formatted data.
3. Our project will convert XBRL information into a populated data base format. This database can act as a powerful repository and source to format and distribute reports on critical corporate financial information in real time.
4. Today no AUTOMATED FINANCIAL DATA MINING SOLUTION exists at all.
5. Market size $2 to $4 Billon dollars annually.
SEC Reporting Solution
Any Security Exchange Commission (SEC) reporting professional within a public company will attest that the process for drafting required SEC documents has not changed much in the past 25 years. It's a process that is tedious and antiquated, with reporting teams relying on basic, non-collaborative tools like word processors and spreadsheets to prepare sophisticated and complicated SEC reports. WE know it firs hand because iGenii is fully reporting Public Company.
Preparation of SEC documents is a highly interative process, subject to ongoing and late-breaking updates, making the manual management of information and document changes complex and prone to error. The current process is resource intensive and most public companies also utilize third party vendors to perform specialized tasks including HTML conversion for the SEC's EDGAR website and filing with the SEC. Reporting teams are also facing the added pressure of new financial reporting standards such as the recently-mandated XBRL tagging process which will add time and cost to an already time-constrained, stressful and expensive process. There’s got to be a better way…
iGenii would build software to suite SEC regulatory compliance, delivering the only complete, fully-integrated solution dedicated to meeting SEC reporting requirements by reporting enterprises and allowing financial data mining and analytics by investing community. iGenii XBRL cloud computing application, would enable SEC reporting teams to collaborate in real-time on document creation using user friendly interface that combines and integrates word processing and spreadsheet editing capabilities in a single application with process controls specifically designed for SEC reporting.Single Web-Based Document
iGenii would create sophisticated collaboration capabilities that would significantly streamline the document development process, eliminating serial editing conflicts and version control issues. With a “single web-based document” approach, multiple authors would work simultaneously in the same document.
Web-based solution would allow "source" values and text to be changed once and automatically trigger updates to all impacted data and text throughout the document. In addition to “Domino Effect” we would also create versatile spreadsheet feature capabilities in document tables, saving time and helping to ensure accuracy.Enhance Security and SOX Compliance
iGenii XBRL would enhances document security and SOX compliance with controlled, role-based document access; a complete document audit trail with detailed editing history; and integrated commenting, bringing transparency to the SEC report drafting process.XBRL and EDGAR Filing Features
Instant, integrated XBRL and EDGAR conversion would saves time and enables companies to directly file their SEC reports from within the web-based application. Easy-to-use XBRL tools simplify the tagging process and enable document drafting and XBRL using Cascade Chain feature.
* Supports multiple SEC filing document templates, including 10-Ks, 10-Qs, 8-Ks, and proxy statements
* Word processing and intelligent tables with "spreadsheet logic" in the same application
* Within single web-based document contributors work simultaneously on the same document
* "Single web-based document ", with real-time updating, eliminates version control issues
* "XBRL Flag Notes" allow users to flag and suggest replacement XBRL tags
* Linking capabilities sync-up data and text changes throughout documents and workbooks
* Multiple "usage links" can reference the same cell in a workbook
* Links in documents can be rolled-forward to the next reporting period
* Intelligent tables automatically foot and cross-foot, ensuring accuracy
XBRL and EDGAR Filing
* Instant output in EDGAR HTML, .pdf and Microsoft Word/Excel formats
* iGenii’s XBRL tools designed for finance professionals, not XML programmers
* Guided tagging process creates a visible "finish line" for XBRL filings
* Powerful visualization features help you assess progress and quality
* Supports XBRL taxonomy creation, validation, instance document creation, and filing
* XBRL “Domino Effect” would allow users to easily undo a change to a date
Software-as-a-Service Pricing Model for iGenii’s XBRL and How Joint Venture going to generate REVENUES
Every day thousands of companies choose to implement Software-as-a-Service (SaaS) applications to meet an ever-growing variety of business needs. The advent and rapid rise of cloud computing has further accelerated the SaaS movement by offering additional benefits and efficiencies. Thousands of companies are enjoying the cost and security benefits afforded by cloud-based SaaS applications, and so can you.
In a SaaS environment, companies pay a subscription fee to access and use the software rather than the traditional model of purchasing and licensing the application with a large, upfront payment $500 to $25,000 —plus maintenance of $500 to $25,000 per quarter depending on complexity. The SaaS subscription model lowers the initial capital outlay, creates tremendous economies of scale, and allows the company to save money, both in the short term acquisition of the product and in the long term maintenance and support of the product.
With iGenii’s XBRL, reporting entity would simply choose the level of access for each person involved in the report creation process, and choose the level of subscription that's best meets company's needs. That's it. Everything else would happen in the background, removing the need for expensive and difficult to manage license management, IT involvement, server maintenance or security updates, and software updates. That's all would be included in your quarterly subscription fee.iGenii’s XBRL is the Foremost Accounting Solution
iGenii’s XBRL solution would be designed from the ground up to help accountants. It would vest full control of the entire XBRL process within financial reporting team. Using a familiar word processor/spreadsheet environment, the XBRL workflow, from tagging through filing, would be accomplished with "Single web-based document ". The "Single web-based document " is based on a “single document datamodel” architecture that ensures that the XBRL instance documents and EDGAR reports will always be synched and reflect the same data.Familiar form with extraordinary function
* Integrated XBRL tagging functions would put the complexity of XBRL behind the scenes, allowing users to focus on making the proper accounting selections. When you need to select a tag, the iGenii XBRL search engine would go through the entire XBRL taxonomy to generate a list of the best possible tag choices and gives user immediate visibility on the accounting implications of each choice.
* Fully integrated solution in a familiar environment. iGenii’s XBRL would be accessible to accountants through a comfortable, familiar visual environment the same spreadsheets and tables used for creating the standard SEC reports. This integrated approach would let SEC reporting teams concentrate on getting the accounting matched up properly with the XBRL.
* 100% of the process stays in house under user’s control. User would remain in control of confidential information throughout the entire close-to-SEC-acceptance process.
* Direct and continuous validation of user’s XBRL choices. The iGenii’s XBRL application would instantly and automatically check the entire document after every change or addition. Visual indicators would provide users with immediate feedback when there are errors and help guide them in making the necessary corrections as they work their way through the tagging process.
* Changes are automatically reflected in all appropriate documents. If user would need to make a last-minute change, our integrated application will keep user’s text document, XBRL and EDGAR HTML documents in perfect sync. The unified SEC document drafting, tagging and EDGAR conversion environment would enables users to make seamless changes to values, text and tags right up to filing time.
* XBRL and EDGAR perfectly aligned. The SEC requires that XBRL exhibits must be an exact mirror of the EDGAR report. With iGenii’s XBRL integrated environment, XBRL and EDGAR filings would always remain aligned and in sync as required to submit compliant reports to the SEC.
* Management’s accounting intent accurately reflected in the XBRL. iGenii’s XBRL, search-based, visual interface would enables users to quickly find the most accounting accurate tags, ensuring that XBRL correctly represents management's accounting intent. We would give you visibility of, and the ability to react to the accounting behind the XBRL tag.
iGenii’s XBRL would secure, web-based software would enables SEC reporting teams to comply with the XBRL mandate in-house by seamlessly integrating the entire XBRL tagging and filing process into the overall, familiar SEC report generation process.
This tool would put familiar, but sophisticated XBRL functionality in the hands of the reporting team, and would enable users to produce fully-compliant XBRL, while ensuring that the accounting intent of users standard SEC reports is reflected in users XBRL exhibits.Taxonomy Analyzer
iGenii’s XBRL would offer a free version of a valuable component of end-to-end financial reporting and compliance software – our XBRL Taxonomy Analyzer.
With the SEC's XBRL mandate in full-swing, accountants are experiencing the need to determine the XBRL tags that best represent their company's accounting. To assist in this exercise, and introduce users to a component of our complete XBRL solution, we would be offering a free version of our Taxonomy Analyzer that includes three primary features:
iGenii’s XBRL Taxonomy Analyzer would combine an intuitive search tool and a hierarchical search function, with the added ability to simultaneously view the most recent SEC XBRL filings. This would provide the best XBRL tagging visibility available in any tool on the market.
Filers would use this powerful tool to:* Search and explore the US GAAP Taxonomy
This tool would enable users to search the taxonomy tree and view actual SEC filings of multiple companies, side-by-side, all in one solution. iGenii’s XBRL Taxonomy Analyzer would be designed to help accountants not only see the high level XBRL attributes, but also discover the accounting behind each tag.Data Mining and Extracting Capabilities with Financial Analytics Interface
Take Control with Integrated iGenii XBRL Financial Analytics Interface. Today financial data mining and delivery is dominated by Bloomberg and Thomson Reuters. iGenii XBRL would allow to create stand-alone analytical tool or integrated single or multi service tools.Two ways to generate revenues from Data Mining
1. Stand-alone analytical tool would be delivered via Internet and would create real-time financial informational service that does not exist today. For monthly fees of $100 per user per month, Bloomberg charges $1,500 per month as shown in Exhibit A below.
2. Integrated single or multi service tool would be integrated and sold through Bloomberg and/or Thomson Reuters exclusively or on shared basis. For monthly fee of $100 as add on service to Bloomberg and/or Thomson Reuters. This could be one of the ways to block any competition and may make Joint Venture the prime acquisition target by both competing financial data giants.Major benefits
1. Real time availability for financial decision makers
2. Cuts cost in collection of financial data, by fully automated seam less process
3. Integrated analytical capabilities in real time
4. Allows for instantaneous dissemination of financial data under XBRL format
iGenii XBRL sales and marketing strategy would consist of a combination of web based and traditional marketing methods and the hiring, training, coaching and management of a skilled direct sales team. It encompass all inclusive customer reach out with targeted email, phone and direct mail and sales campaigns specifically tailored for this market segment. A capital of $2 million will be required to accomplish this. Some of that money will be used to pay base salaries of sales personnel in order to insure best quality sales people are hired and to minimize sales personnel turnover. Some of that money will be used for web, email and traditional marketing to make the company much more visible to the market. And a portion of that money will be used for product support in order to provide a more sophisticated set of products and a support structure to better address the high end market of Publicly Traded companies.
Currently iGenii and/or its subsidiaries do show up at all in the first pages of a Google web search for “web hosting”, “web design” and “SEO”. iGenii has great expertise in SEO. This expertise will be used to insure page 1 placement on these search engines in XBRL category. This is of the utmost importance in order to substantially increase lead flow into the company. In addition, a targeted email and phone campaign should be developed to contact key decision makers within Publicly Traded companies and make them aware of the all-inclusive XBRL solution offered by the company. The goal of this campaign is to sizable share of XBRL market in very short time. Larger customers bring larger sales which accelerates growth. It is important to note that the iGenii’s XBRL product and pricing strategy will probably have to be revised for the high end customers, hopefully achieving an average ticket price of $200-$300k per customer per year with a good number of customers in the 7 figure range.
A direct sales team of 20 people should be hired, with an average annual base salary or draw of $40k for the SMB reps and $80k for the High End reps. Total compensation with commissions per SMB rep should be in the $80-$100k range at plan with no cap. Total compensation with commissions for the High End reps should be in the $200k range at plan with no cap. Commission accelerators should be put in place in order to reward outstanding performance. These accelerators should be individual and team based to reward all members of the team and motivate all to pull together as a group. We believe it will be necessary to focus certain reps on high end customers and others on small to medium sized customers. The requirements of high end customers are much more complex and the sales cycles are longer. The skillset of a high end sales rep and the comp plan is much different as well. We envision a team of 10 SMB reps and 10 high end reps to be hired over 12 months. A pilot team of 2 and 2 should be hired initially. Provided all goes well with the pilot rollout, the additional team members should be hired. This will allow some time for the sales and marketing message and sales methodology and process to be developed and adjusted as necessary for maximum impact and results.
Annual Sales quotas should be established as follows: $5M for SMB reps and $10 million for High End reps. If iGenii’s XBRL cannot support these quotas they can be adjusted down as necessary but the major point here is that a sales rep should generate 50 – 100 times his/her cost in revenue on an annual basis. In addition, it is imperative that a Product and Pricing Plan be put in place that allows these numbers to be achieved. A $10 million quota for a high end rep is below average. Many high end reps carry quotas of $20 million plus but the average sales ticket price is in the $300-$500k range for these reps. This may not be realistic or achievable for iGenii. The important thing will be to identify realistic annual quotas for the SMB and High End reps. Assuming the quotas just listed, at full tilt a 20 person sales force should generate $150 million in annual sales (50 million for the SMB team and $100 million for the High End Team). Cut the quotas in half and the total annual sales number decreases to $75 million. It will take a full year to ramp up, get all personnel fully trained and pipelines and processes built, but once all personnel and processes are in place the sales and marketing engine should generate the numbers listed above. A realistic conservative estimate for the initial ramp year would be $30 million, growing to $70 million plus in year 2, assuming reduced annual quotas of $2.5M for SMB reps and $5M for High End reps.
|Market SHR||Number of Public Co.||Sales Price||Total|
Travel and Expense should be kept to a minimum, but some T&E will probably be required for High End customers. Most selling should be focused on phone, web and email. A good set of marketing, presentation and demo XBRL materials will need to be developed. The sales process and XBRL methodology will be fine tuned to maximize revenue impact and minimize sales cycle time and cost. We assuming some inbound leads will be generated from web and traditional marketing methods, including the existing telemarketing group, but the sales reps will also prospect and cold call to generate their own deals in order to facilitate rapid XBRL market share increase.
The Bloomberg Terminal is a computer system provided by Bloomberg L.P. that enables financial professionals to access the Bloomberg Professional service through which users can monitor and analyze real-time financial market data movements and place trades. The system also provides news, price quotes, and messaging across its proprietary secure network. Most large financial firms have subscriptions to the Bloomberg Professional service. Many exchanges charge their own additional fees for access to real time price feeds across the terminal. The same applies to various news organizations. All Bloomberg Terminals are leased in 2 year cycle, with leases based on how many displays are connected to each terminal. A subscription is around US$1,500 per month. Most Bloomberg setups have between 2 and 4 displays. There are currently 300,000 Bloomberg Terminal subscribers worldwide.
Bloomberg L.P. is a privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion.
Thomson Financial was an arm of The Thomson Corporation, which was one of the world's leading information companies, focused on providing integrated information solutions to business and professional customers. When The Thomson Corporation merged with Reuters to form Thomson Reuters in April 2008, Thomson Financial was merged with the business of Reuters to form the Markets Division of Thomson Reuters.
The company had a wide variety of financial products. Thomson ONE is a core product, although legacy branded offerings such as Datastream Advance and Global Topic will probably remain for a few years. Thomson ONE was a competitor of Bloomberg L.P. and Reuters. There were different packages of Thomson ONE, ie, Thomson ONE for Investment Management, Thomson ONE for Investment Banking, etc. Due to the acquisition of Primark (not the clothing retailer) and buyout of ILX Systems, Thomson Financial had seen growth over the last four years and had seen improvement in the core product Thomson ONE. Thomson ONE now has innovative features fully integrated, like Reuters Insider, cutting edge financial videos right from within the desktop.
Thomson Financial transaction platforms are ubiquitous in financial markets world-wide and include Thomson AutEx trade order indications and executions, Thomson PORTIA automated portfolio management system, Thomson TradeWeb on-line trading network for fixed-income securities, and Thomson BETA Systems for securities data and brokerage processing systems. Thomson Financial made significant growth when it acquired another financial information provider Primark on June 6, 2000, for $842 million in an all-cash deal. Primark owned many names familiar in both the U.S. and UK/Europe such as Datastream, ICV and IBES. The acquisition consolidated and combined competing financial information provision, for example the FirstCall and IBES earnings estimate data, under the same company.
Revenue US $8.641 billion (2010)
Net income US $2.120 billion (2010)