On-The-Ground Research Questions Profile ...updated 07/25/2000

The following profile of subject areas and questions are a guideline for investigation into companies particularly when conducting on-the-ground research. These questions can be accomplished primarily through phone calls to the company and should be put to the company representative having the knowledge and authority to speak on the company's behalf, with followup in areas where the initial question uncovers revealing information. It is important that all published information, news and message board information on the company be carefully reviewed before initiating any calls to or on the company. The company representative or others contacted should be advised that you are a member of the Hannaian Stock Research Analyst Group looking for information directly from the company in preparation for either initial or updated coverage of their company. If you already own shares in the company, also identify yourself as a shareholder.

In conducting your interview with the company's representative it is important to keep in mind that you are attempting to get both the comapny's view and the individual's view if different on the subject matter of your question. in asking about competitors, it is important to attempt to get the representatives opinion of their the competition, and what they understand or believe the competition feels about the situation. Obviously you will not be able to get certain responses from the representative but it is always important to try, since sometimes the information you are seeking will come out indirectly.

The interview should be done in a friendly cooperative manner.


QUESTIONS TO THE COMPANY

Company

Is the company the parent company
Does the company have any subsidiary companies
Who are the major shareholders in the company or its subsidiaries
What other companies does the company own any equitable holdings in
What other companies does the company hold any debt based holdings in
What subsidiaries are the most successful
What subsidiary(ies) is the company currently more focused on

Management

Experience Generally
Experience in specific area of operations
Shortages in management
Plans to add management & staff
Any members of management or insiders with prior criminal, SEC or NASDAQ violations or enforcement actions
What percentage of shares owned by management
What is management's track record with other companies
What other companies does management hold equitable holdings in
What other companies has management have debt based holdings in
Number of employees

Product

Current product description
Pending products, description, due date
What's unique about your product
Risk Exposure & Potential
Comparison to competitors product
Current reviews of product & company and where they can be found
Can a copy of important promotional material be sent for review

Intellectual Property

Type & description, patent, copyright, trade or service mark, industrial secret etc.
How old is the I.P.
I.P. patent or other I.P. registration number
Owned or licensed, full or partial, limited purpose or use etc.
If licensed, is it exclusive, territorial, time limited, what other contingencies of license
If license non exclusive, who else has license and on which terms
If licensed who is primary owner or licensing agent.
How I.P. acquired
Competitors I.P.
Current & potential I.P. challenges

Financial Fundamentals

Who are private financiers, & debt versus equity allocation
Past year revenue generation
Projected revenue generation and substantiation
Current Profits (Earnings)
Amount of cash on hand
Are there any Reg-S deals, offerings of convertible preferred stock or convertible debentures
Are there any Plans for company buy back of its stock
If an OTCBB issue, are there any plans for a NASDAQ listing, if so what plans
Are there any plans of a reverse split in the offing, if so why
Are there any plans for a forward split, if so why
Are there any lockup periods in force, and if so when will they expire
Are there any stock options held by insiders or others which have not yet been exercised, if so on what terms can they be exercised

Marketing Efforts

Description
Which markets targeted
Which markets actually infiltrated
Marketing Budget
Current % of success of the marketing plan

Collaborators, Alliances, Merger & Acquisition Activity

Who are the collaborators and alliance partners
How collaboration structured
Why, what do collaborators get from alliance
What does company get from alliance
Details of agreements, strength, length, formal etc.
Number of institutional investors
Most recent institutional investors, public and private
Is the company aware of any large positions in equity or debt held or controlled by marketmakers
Has the company been approached by parties interested in a merger or take over in the past year, if so with who and when
Has the Company approached any other company or entity about the possibility of merging or acquiring assets within the past year, if so with who and when
Are there any ongoing merger and acquisition activity being conducted at this time or planned within the next 6 months
If merger and acquisition activity is ongoing or planned what is the primary reason for such activity and how will it benefit shareholders

Competitors

Who are competitors
Strength of competitors
Companies strategy to compete with competitors
What does the competition feel about the competitive situation

Market Notice

History & details of analysts coverage
Available copies of recent major news stories
Available copies of Analysts reports
Institutional investors & interest

Law Suit & Regulatory Action History

History of Lawsuits by the Company & against the Company
History and current awareness of any SEC or NASDAQ investigations or actions

Important Future or Pending Activities

What are future plans generally
What are future plans to increase shareholder value

Availability of Information for Investors

Current reviews of product & company and where they can be found
Scheduled investor related conference calls or other upcoming investor related reports
Can a copy of important promotional material be sent for review
Get placed on a mailing list to receive important company, product, and investor update info.

Followup Review

Get and record name and position of company contact providing information
Get agreement to call back for followup, and updating information



QUESTIONS FOR INDEPENDENT TECHNICAL EXPERT ANALYSIS
The Technology should be independently investigated by questioning of technology and industry experts in the particular subject matter. The investigation should look at the following:
 

Efficacy of the technology
Competitors technology
Future of the industry



QUESTIONS FOR INDEPENDENT INTELLECTUAL PROPERTY ANALYSIS
An independent analysis of the Intellectual Property holdings of the company needs to be made. While this is an area where HBN affiliates should have the expertise, it is still important to attempt to get independent verification of the efficacy and competitive capacity of the involved I.P.
 

Uniqueness of the Intellectual property
Type & description
How old is the I.P.
Owned or licensed, full or partial
Competitors I.P.
I.P. challenges
Dependence of Business on the I.P. holding
History of sale, lease, license or merger acquisition value of similar I.P.s.