00:00You left on August 3rd. There was a statement out. Yeah. That said the decision was mutual. Sure. Now you
00:06want back in. Was it not mutual? The decision was abrupt. And I was given a set of choices and
00:15I thought let's do what's best for the company. Since that time the stock price of the business has gone
00:21down by 45 percent. I thought maybe someone new might be able to help. The markets shareholders are all surprised
00:29by
00:29the new CEO's actions. The new CEO. You're talking about Daniel Lewis. The interim CEO. That's correct. But I mean
00:36August 3rd was you know 10 days ago. That's correct. I mean what's happened in 11 days. I think we've
00:41seen a number of actions by Daniel that haven't reflected well on the company. I think we've had the stock
00:49market vote on this. I think we have a number of deals that we were executing where I think we
00:57were in the middle of it. And I think just fundamentally
00:59the job of making homeownership better for all Americans is not done. We had made a lot of progress over
01:06the past two and a half years. We'd grown revenue from 70 million to over 200 million. We had cut
01:11losses. We were at the five yard line of getting to profitability. And I think all of those things are
01:18better done and executed with a you know someone that is not the Ford's current choice.
01:25Do you have any examples though specific examples of anything Daniel Lewis did that they gave you concern.
01:31I think the board firing. Yeah. The 12 year founder and CEO in the middle of the day on a
01:39Monday having a new CEO come in and that new CEO departing for the south of France on vacation for
01:45the rest of the month four days later is not an indication
01:48of confidence for the company its employees or any of its business partners. I do have to ask you though
01:54in the statement that that better released
01:57today and we didn't put it on the board because it was kind of sensitive but I'm going to read
02:00it to you verbatim and I'm sure you saw it. It says the board
02:03has reviewed communications that based on counsel's analysis is evidence of Mr. Garg's direct involvement in conduct the council believes
02:11may constitute
02:12violations of U.S. securities laws. What are they referring to. I think that that's total buckets. I think that
02:18those are just first of all
02:21they didn't refer to anything specific. They do not know. And I think they've couched it because in the based
02:28on counsel's analysis and so on
02:30so forth could. So I think fundamentally I think that those allegations are buckets. I think they're meant to deflect
02:36from the fact that Daniel Lewis doesn't have the
02:39support of the employees or the shareholders of the company. Do you have the support of shareholders. I mean how
02:46many votes have you
02:46managed to sort of corral on a percentage basis. We have already corralled 52 percent of the vote. You have
02:52you have 52 percent. That is
02:53correct. The shareholders have spoken. And which share class do they hold. They own both class A and class B's.
02:59Are these declarations binding or
03:00revocable or is this just a handshake. No they're all binding. They've been delivered by counsel to the company. Okay.
03:06So then give me a sense of what comes
03:08next. Are you preparing for a fight. I don't think there needs to be any fight. I think there's going
03:12to be a consensual
03:13resolution. And if there's not a consensual resolution because of the company's bylaws the vote of the majority
03:19class is binding upon the company. So I think the company will either need to accept it today Monday in
03:2810 days or at the absolute
03:29latest depending on the process in 35 days. So according to you you have the shareholders support. Do you have
03:35the money. We don't need
03:37any money. You don't need any money. No at all. No. The company is well capitalized. The company has been
03:41growing despite the
03:43Iran war. We grew revenues 15 percent while people were dropping. So I just want to be clear here. But
03:51I mean it said you would
03:52invest five million personally through a 10 B 5 1 plan. That's correct. It also said that there was quote
03:59another 30 million
04:00dollars alongside shareholders. Where's that 30 million. No. The company is going to buy back up to 30 million. Yeah.
04:05Buy back up to
04:0630 million. If you were able to get back control. That's the idea. Yeah. Well the company is going to
04:10invest in its own shares
04:11because the company shares are fundamentally over undervalued relative to where they were just two weeks ago. This time last
04:18two weeks ago on
04:19Monday the stock price was something like 27 dollars a share. Yeah. And today it's nearly half that. But why
04:25buy back stock. This is a
04:26company. I mean it's purely based on the fundamentals that have been reported. It's still burning cash. The company is
04:31burning cash. It's on its way to profitability. The company is in the process and this is public of selling
04:38its bank in the United
04:39Kingdom. And if we are able to generate both proceeds from operations turning profitable over the coming months and execute
04:49the sale of the
04:49bank which will release over 70 million dollars in cash to the company. Then buying back the company stock is
04:55one of the
04:55best things it can do for a stock price that is at the same level today as it was two
04:59years ago when the revenues of the
05:01business were 70 million dollars. And today we're the leading AI platform in the mortgage industry of 15 trillion dollar
05:07asset
05:07class. Yeah. And you know we've got over 200 million dollars of revenue and the stock trades you know at
05:13one and a half times
05:14revenue. So the UK deal that's that's more or less a done deal. Is that what you're telling us. Oh
05:19I'm telling you
05:19that we are very very close. You're very very close but not nothing binding with regards to that sale. No
05:25nothing binding so
05:26far. I am curious about the board. Do you have a sense of who you would want as directors. Have
05:32you line those
05:32people up or is that a decision that you're going to make at some other time. We have we have
05:36communicated to the company who we'd like
05:38on the board. Are the ways that the bylaws are written going to give you the power even if you
05:43were to get the shareholder support on
05:45this to actually be able to appoint those directors. It will. And you're confident of that. I'm 100 percent. Have
05:50you been in direct
05:51communication with the company over the last few days about this. Yes. We were at a board meeting just earlier.
05:57OK.
05:58What do they tell you. They have to consider the proposal that we sent.
Comments