Here’s something that I think is important with this story, but nobody’s mentioned it yet: if TTSA was the shameless kind of money-grab organization that many people have accused them of being, they would’ve gone commercial with all this stuff, like the “Alien Autopsy” hoaxers did, or the appalling “Roswell Slides” jokers did. But they didn’t – they just gave us everything for free.
In fact I just checked out all four of the videos they have on their YouTube channel – and they’re not even monetized: we don’t even have to watch a commercial for 5 seconds in order to see these video clip releases. They have over 8 million views that they easily could’ve monetized.
Every dollar they’ve brought in has been on a totally voluntary basis. I think it’s insane that anyone has a problem with any of this.
You really are missing the whole scheme. Monetizing content with fees or ads would be just normal business, but this is way worse.
First of all, they do have ads, they just advertise themselves. Their clips begin with texts advertising how that content is exclusive to them, how they supposedly have the CoC documentation, which we still haven't seen, they have put their big logo on top of the actual videos, and at the end is a big ad for themselves and link to their page, which is selling investments. They are not sharing the actual original clips, which wouldn't have been recompressed and hence losing detail with additional artifacts, most likely because those wouldn't have their ads in them. They are prioritizing their marketing over the accuracy and quality of the evidence.
Secondly, they don't exactly have the kind of content they could sell. The actual original videos are shorter than many ads. Plus the one that is actually from a significant event has been publicly and freely available for more than a decade, and really, in a more original form, not having TTSA ads or anything. If they had actually made people to pay for the "Go Fast" video for example, it would be time for refunds, since they have marketed it with obviously false information.
If they actually cared for the information they are handing out, they would have corrected such gross errors by now. The main purpose seems to be just content marketing, and why else would they also publish Nolan's Atacama skeleton stuff, which has little to do with the TTSA?
Like all roads lead to Rome, all they have done seems to lead to them selling so called investments. That's the first thing on their front page. Their COI pages have a big "Invest now" button and link to their offering circular at the bottom. Their "join us" and "get involved" links lead to investments, both on their main and COI pages. Their main page is publishing new content under the heading "Investment updates". When people have tried to ask them questions through their contact form, instead of actual responses, they responded with advertising investments. Sure, it's voluntary to actually invest, but so are investments in pyramid schemes.
The real problems begin when we look at how those investments are actually priced ($5 for book value of $0.003) and used. We find DeLonge giving himself big guaranteed royalties for business that is actually losing money. We find DeLonge giving himself loans between his own businesses, with interests to pay, and at least most of that money has little to do with TTSA, at least half of it was already loaned between his entertainment businesses before TTSA even existed. He loaned money to himself, and expects investors to pay it back, with interest. Those loans are fittingly due at the end of this years, right after the current investment period ends. Then there's the issue of collecting the money in this stupid way, causing expenses as high as 25% of all that is collected, by their own estimates.
Let's try to calculate how much they are in the hole by the end of this year from those alone:
Loans + interests (2016-2018): ~$680,000
Minimum royalties (2017,2018): 2x $100,000
Expected offering expenses: $250,000+
That's -$1,130,000 already. No wonder their minimum target was a million.
How about their core and only business really, entertainment, does that help? Let's look at their past performance (from the Offering Circular):
As a result of the foregoing factors, the company’s net loss from operations was $422,670 in 2016, a 31% increase from losses of $322,912 in 2015.
Maybe they have done better in 2017? Let's look at their semiannual report for the first half of that year:
https://www.sec.gov/Archives/edgar/data/1710274/000114420417065376/tv482047_1sa.htm
Cash used in operating activities was $151,651 for the six months ended June 30, 2017, as compared to cash provided by operating activities of $18,014 for the six months ended June 30, 2016. The change was primarily due to higher net loss, partially offset by higher non-cash expenses.
We have an accumulated deficit at June 30, 2017 of $26,248,900. We expect to incur substantial expenses and generate continued operating losses until we generate revenues sufficient to meet our obligations. At June 30, 2017, the Company had cash of $70,784. The Company is currently raising additional funds through a Regulation A offering to finance its operations.
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses from operations and has an accumulated deficit at June 30, 2017 of $26,248,900. These factors raise doubt about the Company’s ability to continue as a going concern.
Oh dear, doesn't look too good, but luckily they have some gullible investors ready to rescue them. The majority of those insane deficits seems to be because of those shares and options they have given to themselves, as if those were free, which they pretty much have been for them, not to the investors, who are really just mocked with acts like that. I'm not familiar with those bookkeeping practices and if those are typically recorded like that.
Anyhow, if they have continued to make similar kinds of losses for 2017 and 2018, they would be on target to need closer to two million just to get to the zero level. But hey, they already have $2.5 million of investment money, so not a problem, right? I wouldn't count on it, as I'm suspecting much of it isn't actually real, but that's another story. Also, at the moment for example, comparing their counters to what they were 10 days ago, they have actually lost both money and investors.
On several occasions, I have raised the question why didn't they make a fresh start as a new non-profit without all these shady connections to existing businesses (which would have been free to donate some money to the non-profit if they wanted, and actually had some). But the answer looks to be pretty apparent now: A new business would had to start from zero, now they can start from -$26,248,900, and counting, due to being stuck with old businesses causing losses.
Anyone who still believes they have resources to do some unrealistic research, or that their nonsense would be attracting actual serious academics and such, hasn't really followed what is actually going on with that sham of a company. For all that I can see, it's not about entertainment funding UFO research, as some true believers seem to think, it's about gullible UFO enthusiasts funding failing entertainment, including paying for significant losses DeLonge has incurred in the past.