The accounting for MEARS Authentications and MEARS Auctions is complete for 2010. Both entities showed profits, with MEARS Auction surpassing MEARS Authentications. The independent 3rd party audit of MEARS Auctions was once again completed by Kosimar Brady & CO and the results of this audit on are file at MEARS Auctions for on site review by interested parties.
With all that being said, I want to address changes in the MEARS Buyers Protection Program (MBPP). Effective 1 May 2011, claims against this policy will be limited to a refund of fees paid for evaluation. The MPPP was revolutionary and something I feel was the right concept of for the time. However, the number/value of items we have evaluated to this point have a direct and material effect on the price of insurance premiums required to safeguard this policy. Shareholders in MEARS Authentications (a separate business entity from MEARS Auctions) have made the decision to change the policy with respect to revenues and operating expenses. To date, the MBPP has refunded over $25,000 to collectors and there is another $6,000-$9,000 in claims pending. In the cases of where refunds were provided in accordance with the MBPP, the fees refunded far exceed (by an approximate factor of 10 times) the actual revenues generated by the evaluations. It should be noted that with respect to those pending claims, if found to be warranted, claims under the pre- 1 May 2011 will be honored.
Shareholders have also asked for change in policy with respect to submissions. MEARS Authentications is to operate as a full service entity without exclusive qualifiers to any select competing auction house. If the MEARS Authentications work force has the time (priority of time and effort is to MEARS Auctions), then any and all individuals may request evaluation services. Please note that there is no plan for establishing formal accounts with other auction houses.
What will remain common and consistent between MEARS Authentications and MEARS Auctions is that any item evaluated by MEARS Authentications and offered in a MEARS Auction will continue to be covered by the original MEARS Buyers Protection Program. It should also be noted that any item previously evaluated by MEARS will be revaluated (at no cost to the consigner) before a decision is made to offer it in MEARS Auction.
Troy R. Kinunen