Tautachrome Inc (OTCMKTS:TTCM) just put out a letter to shareholders outlining its goals for 2017, and the company is running up on the release. The assumption is that shareholders are confident that the company can make good on its targets for the year. If it can, there’s more than the 20% it just gained on offer for the coming quarters. Here’s what the letter said, and what it means for Tautachrome.
It kicks off by saying 2016 was an amazing year for the company. Chances are shareholders won’t swallow the word choice – Tautachrome finished up 2016 a couple of points down on its 2016 open, and was a real roller coaster of a ride along the way. In September, the company was practically worthless, priced at lows of $0.002 a share. It gained a bit of strength throughout the start of the final quarter, then lost a good portion of it, then rallied into 2017. Current PPS is circa $0.02, around 900% up on September lows. You could argue then, that Tautachrome had an amazing final quarter, but that’s about it.
Anyway, back to the letter. The company moved from pinks to QB, which is a step in the right direction, and one that management sees as the first step towards a NASDAQ listing. From here, that’s a big ask, but a look at the company’s technology suggests it may not be an impossibility.
The technology in question, and the next topic of the letter, is called KlickZie. It’s essentially a way for users of mobile devices to watermark (but invisibly) their images, videos and other media as it leaves their devices and heads towards another device, the cloud, that sort of thing. The technology is pretty neat, there’s a clear and definable need for something like it, and to quote directly form the letter:
“Tautachrome is the only company in the world with patent claims dedicated to allowing billions of people around the world –all the users of smartphones — to make pictures and videos, as a normal course of their picture making, that, with evidence-grade reliably, can be authenticated and trusted by any third party anywhere else in the world.”
The problem is, the patents – as yet – don’t belong to the company. They’ve just recently been allowed by the USPTO, but not issued. The key patent, the patent that relates to the core authentication, is expected to issue within what the company refers to as the next few weeks. If this proves correct, there’s a double digit percentage point upside, if not more, on just that announcement. For KlickZie to be the only technology that can automatically authenticate media files as they exit mobile devices is huge, and something that we can see many device makers incorporating into their core software/OSs.
The next part of the letter alludes to exactly that. The company has, reportedly, been in discussions throughout the later half of 2016 with a Fortune 50 company, concerning the implementation of the KlickZie technology into its products. As CEO Dr. Jon N Leonard says, this would result in a large payoff to Tautachrome, and could dramatically improve the company’s cash position in early 2017.
That’s the 2017 plan, what could go wrong?
The risk is rooted in the patents. If the USPTO fails to issue the core patents, none of the others really matter that much (they are more embellishments of the core than fresh application) and Tautachrome would struggle to dominate the market for this sort of technology if it wasn’t covered by patent exclusivity.
Cash is also an issue. It’s practically nonexistent at September 30, 2016, and so this is going to necessitate some level of raise (and resultant dilution) near term. With that said, an injection from the above mentioned Fortune 50 company could delay this requirement.
We will be updating our subscribers as soon as we know more. For the latest updates on TTCM, sign up below!
Disclosure: We have no position in TTCM and have not been compensated for this article.