Hi Finicky, Gigarange, et al.Sorry not to have written and...

Hi Finicky, Gigarange, et al.

Sorry not to have written and posted this sooner but I had to tend my yard before the temp and humidity became too severe, do my 10,000 steps at a local air-conditioned supermarket and have coffee with another retiree.

So here now is my reply.

I quite agree with you that the Gross Value put on the shares was $135,962. I do not agree with your comment that "It's what they were worth at the time that counts". Also it is not what I "summise that they are worth in the changed conditions of today"; it is what they are worth. Yesterday Intec shares were worth 2 cents each. Now there are two points here;
1. You valued your share portfolio at $XXXX on the 30th June when you did your tax return. Do you mean to say that you have not up-dated your portfolio's worth since? So the value of your share portfolio, if you have not changed the shares you held then, is the same value as it was at 30th June? You have not looked at the recent value of your share portfolio during the last 6 months and seen the changes and then adjusted and recorded the new value? As a retiree, and a member of The Independent Retirees Association, I can tell you that, as retirees watch their managed funds go down due to asset destruction, they inform Centrelink on a regular basis of their decreasing assets. It is today's asset values that count; not yesterday's.
2. As I said above, the value of the 2,500,000 Options reported in the Annual Report was the "Gross Value". To do anything with them Philip Wood would have to buy them. Even at the time of the Annual Report being written he would have been looking at "Negative Income" if he had exercised his right to buy and then sell them. The Options "Net Value" would have been negative as it would have cost him over $200,000 to cash them out and they were only worth $135,962. Today the position is far worse as the loss would be as I have said in a previous post $150,000 "Negative Income".

Your following questions; "You're saying that no monetary value should be assigned to such a grant? Or are you saying that the value of the options as remuneration should be revised constantly in accordance with the vagaries of the share price?" In answer to the first question I will say that when I registered my new share holding after the latest share offering at 5 cents I also informed Centrelink of the 6 figure number of Options granted as part of the deal. Centrelink recorded the number but told me that, until I exercise my right to buy them, they are carrying no value and would not be counted as an asset even though they were trading above one cent at the time. In answer to your second question I say that fixing something in time, and under the same regulations as other companies is a good thing, but not to adapt and be flexible to changed conditions can be fatal. There is no point in pretending that the ASX has not changed its value during the last 6 months and as a consequence there has been no change in share prices.

Now the Options are going to be, when and if ever exercised, "a liability for (share holders and pose future) "definite" and not as you say "potential" dilution." I say your following comment is invalid; "The options had a real value at that time and that value can be calculated, and that is what he was paid, and it was paid by the shareholders." My comment is that nothing was paid by the shareholders for any of the Options shown during 2008. As a matter of fact before Philip can do anything with the Options he has to buy them and so cash will go into Intec's cash flow.

Your comment that "I can only imagine what he'll get himself paid if this operation ever actually makes some money, and the share-price rises" is interesting since many posters on this Forum don't see Intec surviving. If Intec doesn't survive then the 2,500,000 Options granted to Philip Wood will be as valueless to him then as they are at the moment.

And no, the mango will not drop. Mango quite enjoys straightening things out as he sees them.

Further I remain very positive about the future of Intec. Years ago I cashed out my shares and put the cash into my wife's Super Fund as she was still working where as I had retired. I had a few shares in some other companies and since then I have sold them and continued to buy Intec shares because I have confidence in the processes it has Patents over and confidence in the staff. Since I have that confidence I do not hesitate to post my "sentiment" as "buy".

Cheers.