Image Protect Inc. (OTCMKTS:IMTL) provides a very interesting case study. Let me start off by covering the company’s most recent piece of news – because it’s hugely important in the evolution of this story – and then I will put it in context to make my case (because this is a sub-penny micro-cap, so a rock-solid case is key).
The company just recently announced that “a well-established network of web properties managed by PaliMedia has agreed to join the Fotofy network.”
The network of sites in question includes high-quality web properties in the Pets, Technology, Health & Wellness, Beauty, Fashion, and Automotive verticals. This announcement is basically the news that this entire network of sites will now be replacing all of its pictures/imagery with images drawn from Image Protect’s Fotofy library – each of which will contain the capability of hosting in-image advertisements where Image Protect gets a piece of the revenue stream.
This is the first major network of sites to join up and start running Image Protect’s in-image ads after the Fotofy platform launched last year. And it has been an incredibly fast path from beta launch to live ads.
“This is a High Point for our Fotofy project – where everything is finally moving on key levels – and it’s a great way to kick off the new year,” noted Lawrence Addams, Image Protect CEO. “Our beta platform was launched in August, 2019. It’s remarkable that we are already as far along as we are. The PaliMedia network of sites represents a high-quality collection of strong web properties that should provide an excellent example of the Fotofy value proposition for the world to witness in action.”
For a little perspective, Image Protect Inc. (OTCMKTS:IMTL) is moving forward with what it calls “the Fotofy Model”, which is effectively a brand new thing.
Fotofy.com offers license-free images that contain code to track where those images are published and to allow those images to host in-image advertisements once published. These images are owned by their creators (the “Rightsholders”), shared and hosted by Fotofy users (the “Users”), tapped by advertisers (the “Brands”), and monetized by all parties, including the Company. Everyone shares in the revenue stream contributed by the Brands, who benefit from the distributed reach and targeted audience cultivated by the Users and their associated traffic.
The ad network and the platform are fully developed and deployed already. A good image library has been built. And now the platform is starting to generate revenues. The only thing that remains is to watch the viral dynamic spread from here as more and more networks of sites realize they could be generating revenues with their images.
As the company put it in a prior release, “The difference between paying for images and getting paid by images is enormous, and it works one hundred percent in our favor.”
Now that the company is set up to start generating positive cash flows from operations, the stock can start winning as well given that this has been a dilution story ahead of the shift we are now seeing. The stock has been discounting continued dilution, but the ahead-of-schedule push toward cash from operations suggests an end to the era of IMTL dilution and a shift into a different mode of behavior for shares.
The process now is simply about the market taking notice of this shift, which we believe is inevitable and just a matter of time.