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REPORT JANUARY-JUNE 2010 (published August 30th 2010)
Dear shareholders,
Reports
Our last report was published on the website in December 2009.
This report is for the period from January 2010 until June 2010 (submitted at the statutory shareholders’ meeting on June 30th 2010).
Meetings
In October 2010 we will schedule a two-day informal strategy meeting for shareholders to discuss the company’s activities, plans and
share liquidity. The meeting will be reporting on some important changes in shareholder groups that are taking place during 2010. The
meeting’s conclusions will be published here at the website.
Activities
The company’s commercial activities today are listed on the “projects” page at the website. As a new feature, we have added time-
frames for the projects so you can check on the progress. If you click on each project’s logo, you get a special page for that activity.
Business model
The recession of 2008/2009 forced us to reinvent much of our old traditional business model, and left residual legal problems and
litigation which were mostly resolved in 2009. In 2010 we moved to a new approach where half of our projects are managed internally,
the other half being external projects managed by third parties. This should improve operational control, compared to when we were
only minority shareholders in outside startups. The projects page on the website shows which projects are managed internally and
which externally.
Jurassic
In the projects page, you will see the original real estate program called ‘Jurassic’. Although there has been some progress in
demolition (see photos at mcgroup1.com) the illness/death of some principal partners delayed this program for over three years. Now
the permit requests have finally been submitted to the local authorities.
In-house development
From June 2008 to now, because of a) cleaning up litigation, b) starting the luminescence business in Colorado, and c) creating the
new product-lines in social tools, very little was invoiced. However, on the cost side, the switch to building in-house product-lines,
rather than investing in outside startups (which need a lot of supervision and audit work) allowed us to simplify the complex corporate
structure and staff organization that we had set up, and reduce our overheads and cash requirements to extremely low levels in 2009
and 2010. We also switched all our people to non-cash remuneration. We now produce everything in-house, from websites to product
prototypes to promotional materials. For example, the new product lines and web interfaces developed in-house over the last two years
have required 11,000 man-hours of programming time, which an outside agency would have invoiced to us for € 5m.
Product introductions
Modernising the product-lines will help to make the company more attractive to share buyers. We will be able to re-calculate share-
valuations as soon as we have the first sales of the new product lines. So far we have tested the Bizzmo’z products and are getting
positive reactions from users. In the second half of 2010 we will be introducing the product-lines like Fit-Chat.
Share sales
We estimate the number of shares that are available for sale by sellers is around 2m shares at the moment, for which they would need
a sales price of approximately € 1.00 per share. During the last 12 months about 1m shares were sold by shareholders to new
shareholders, in transactions not initiated by the company.
Valuation
One benefit of having reduced our overheads and having moved to product-lines with lower fixed costs, is that we only need to have net
profits of say € 300,000 to justify a valuation of around € 4.5m, using a standard P/E ratio of 15xnet-profits. This is equivalent to a
valuation of € 1.00 per share, based on the current number of public shares issued of approx. 4m shares. The company had a net
profit of € 25,000 in 2008 and a net loss of € 29,000 in 2009, showing that overheads and costs are essentially covered, Consequently,
profits from new activities can go almost entirely to the bottom-line. A net profit of € 300,000 should be attainable based on the interest
we have seen while market-testing.
Communication
Now that the company has finished development of the new projects, we will be strengthening share attractiveness by boosting the
company’s public visibility. To do this, we will be adding photo and film material to the website during September 2010. We have
opened a corporate Facebook page in addition to the ones we already have for the product-lines. This page will be a platform for
communication with shareholders and keeping them up to date on what we are doing, as promised in our last report. The Facebook
page can be consulted anonymously if you wish. The Facebook page automatically retweets status updates to our "eurhold" Twitter
stream. We now have shareholders from China, Russia, Africa, the US and several European countries, so our communication
platforms must be easily accessible by an international audience.
The next report will be in October 2010.
Of course, if you would like a printed version of any reports or activity lists on the website, please let us know.
Sincerely,
EURASIAN HOLDINGS
Michael Harrop – CEO
http://www.harrop.info
Denver and Geneva, August 2010.
REPORT SUMMARY 2004-2010 (published December 2009)
Dear shareholders,
Eurasian Holdings Inc. was created in 2004 to incubate startups and to option some real estate projects that shareholders had
brought to us. EH followed previous startup incubators built by Harrop & Co.
In 2005/6, we developed startups in luminescent building materials, luminescent decor surfacing and luminescent paints, alpine
herbs for health/sport drinks, hi-tech rigid inflatable sports flooring, and optioned into some long-term resort developments in
Lebanon, Dominican Republic, Switzerland, and France.
In 2005/6 we studied share-listing and merger scenarios in USA, Germany and Switzerland, to provide liquidity for shareholders, but
bad stock market conditions at that time made an IPO too risky. The IPO market is still dead. Instead, shareholders were assisted in
transferring shares privately if needed. A sister company, Eurasian Holdings AG, was created to provide share liquidity and proximity for
European shareholders. The shares are equivalent to the American shares.
In 2007 the startups' new products were successfully validated with customers, strong orders were booked and promising
partnerships initiated with industrial groups. However after a strong start to 2008, the recession hit, with the following results:
By mid-2009 we were able to win or extract ourselves from all the litigation and have now initiated actions to recover some damages.
But it was a very difficult moment. We are still correcting the administrative damage and management fatigue caused in 2008/9. As of
June 2008 our CFO retired and all non-essential staff and expenses were discontinued.
We spent 2009 re-inventing our business model so it could function in the new economy and with a simplified structure. We took
decisions as follows:
Now re-organized to function in a very different economy, and with no institutional debt and minimal overhead, we can turn to helping
those shareholders who want to sell shares. As the new activities attract new shareholder groups with new expertise and
relationships, we will start to arrange sales for selling shareholders from the end of first quarter 2010.
The operational and legal workload over 2008 and 2009 meant communication with shareholders was not good. Attention is being
given to correcting this.
Best regards,
Mike Harrop - CEO
http://www.harrop.info
Denver and Geneva, December 2009.
"Eadem mutata resurgo"
Dear shareholders,
Reports
Our last report was published on the website in December 2009.
This report is for the period from January 2010 until June 2010 (submitted at the statutory shareholders’ meeting on June 30th 2010).
Meetings
In October 2010 we will schedule a two-day informal strategy meeting for shareholders to discuss the company’s activities, plans and
share liquidity. The meeting will be reporting on some important changes in shareholder groups that are taking place during 2010. The
meeting’s conclusions will be published here at the website.
Activities
The company’s commercial activities today are listed on the “projects” page at the website. As a new feature, we have added time-
frames for the projects so you can check on the progress. If you click on each project’s logo, you get a special page for that activity.
Business model
The recession of 2008/2009 forced us to reinvent much of our old traditional business model, and left residual legal problems and
litigation which were mostly resolved in 2009. In 2010 we moved to a new approach where half of our projects are managed internally,
the other half being external projects managed by third parties. This should improve operational control, compared to when we were
only minority shareholders in outside startups. The projects page on the website shows which projects are managed internally and
which externally.
Jurassic
In the projects page, you will see the original real estate program called ‘Jurassic’. Although there has been some progress in
demolition (see photos at mcgroup1.com) the illness/death of some principal partners delayed this program for over three years. Now
the permit requests have finally been submitted to the local authorities.
In-house development
From June 2008 to now, because of a) cleaning up litigation, b) starting the luminescence business in Colorado, and c) creating the
new product-lines in social tools, very little was invoiced. However, on the cost side, the switch to building in-house product-lines,
rather than investing in outside startups (which need a lot of supervision and audit work) allowed us to simplify the complex corporate
structure and staff organization that we had set up, and reduce our overheads and cash requirements to extremely low levels in 2009
and 2010. We also switched all our people to non-cash remuneration. We now produce everything in-house, from websites to product
prototypes to promotional materials. For example, the new product lines and web interfaces developed in-house over the last two years
have required 11,000 man-hours of programming time, which an outside agency would have invoiced to us for € 5m.
Product introductions
Modernising the product-lines will help to make the company more attractive to share buyers. We will be able to re-calculate share-
valuations as soon as we have the first sales of the new product lines. So far we have tested the Bizzmo’z products and are getting
positive reactions from users. In the second half of 2010 we will be introducing the product-lines like Fit-Chat.
Share sales
We estimate the number of shares that are available for sale by sellers is around 2m shares at the moment, for which they would need
a sales price of approximately € 1.00 per share. During the last 12 months about 1m shares were sold by shareholders to new
shareholders, in transactions not initiated by the company.
Valuation
One benefit of having reduced our overheads and having moved to product-lines with lower fixed costs, is that we only need to have net
profits of say € 300,000 to justify a valuation of around € 4.5m, using a standard P/E ratio of 15xnet-profits. This is equivalent to a
valuation of € 1.00 per share, based on the current number of public shares issued of approx. 4m shares. The company had a net
profit of € 25,000 in 2008 and a net loss of € 29,000 in 2009, showing that overheads and costs are essentially covered, Consequently,
profits from new activities can go almost entirely to the bottom-line. A net profit of € 300,000 should be attainable based on the interest
we have seen while market-testing.
Communication
Now that the company has finished development of the new projects, we will be strengthening share attractiveness by boosting the
company’s public visibility. To do this, we will be adding photo and film material to the website during September 2010. We have
opened a corporate Facebook page in addition to the ones we already have for the product-lines. This page will be a platform for
communication with shareholders and keeping them up to date on what we are doing, as promised in our last report. The Facebook
page can be consulted anonymously if you wish. The Facebook page automatically retweets status updates to our "eurhold" Twitter
stream. We now have shareholders from China, Russia, Africa, the US and several European countries, so our communication
platforms must be easily accessible by an international audience.
The next report will be in October 2010.
Of course, if you would like a printed version of any reports or activity lists on the website, please let us know.
Sincerely,
EURASIAN HOLDINGS
Michael Harrop – CEO
http://www.harrop.info
Denver and Geneva, August 2010.
REPORT SUMMARY 2004-2010 (published December 2009)
Dear shareholders,
Eurasian Holdings Inc. was created in 2004 to incubate startups and to option some real estate projects that shareholders had
brought to us. EH followed previous startup incubators built by Harrop & Co.
In 2005/6, we developed startups in luminescent building materials, luminescent decor surfacing and luminescent paints, alpine
herbs for health/sport drinks, hi-tech rigid inflatable sports flooring, and optioned into some long-term resort developments in
Lebanon, Dominican Republic, Switzerland, and France.
In 2005/6 we studied share-listing and merger scenarios in USA, Germany and Switzerland, to provide liquidity for shareholders, but
bad stock market conditions at that time made an IPO too risky. The IPO market is still dead. Instead, shareholders were assisted in
transferring shares privately if needed. A sister company, Eurasian Holdings AG, was created to provide share liquidity and proximity for
European shareholders. The shares are equivalent to the American shares.
In 2007 the startups' new products were successfully validated with customers, strong orders were booked and promising
partnerships initiated with industrial groups. However after a strong start to 2008, the recession hit, with the following results:
- Product orders were cancelled as end-user customers shrank to their core activities and stopped trials with new products.
- Our main product distributors suspended operations, leaving us with semi-processed inventory and unpaid receivables.
- There was litigation in all the real estate projects as banks and deal partners adjusted to the new realities.
- There was litigation concerning luminescence patents, our key product area.
By mid-2009 we were able to win or extract ourselves from all the litigation and have now initiated actions to recover some damages.
But it was a very difficult moment. We are still correcting the administrative damage and management fatigue caused in 2008/9. As of
June 2008 our CFO retired and all non-essential staff and expenses were discontinued.
We spent 2009 re-inventing our business model so it could function in the new economy and with a simplified structure. We took
decisions as follows:
- With the real estate situations indefinitely delayed and to avoid property upkeep costs, we rescinded our real estate options and
cancelled the shares that we had issued for them. - Luminescent materials production has been mostly moved to USA which has traditionally had a stronger interest in
luminescence than Europe. A pilot production facility is being built in Colorado during 2010. We have added some new US
shareholders as a result. A number of US-specific new products are being developed. - We developed a range of "new economy" low-entry-cost health, entertainment, and social products to complement the industrial
activities while these are being re-built.
Now re-organized to function in a very different economy, and with no institutional debt and minimal overhead, we can turn to helping
those shareholders who want to sell shares. As the new activities attract new shareholder groups with new expertise and
relationships, we will start to arrange sales for selling shareholders from the end of first quarter 2010.
The operational and legal workload over 2008 and 2009 meant communication with shareholders was not good. Attention is being
given to correcting this.
Best regards,
Mike Harrop - CEO
http://www.harrop.info
Denver and Geneva, December 2009.
"Eadem mutata resurgo"
