K5M Q2 REPORT

A Message From K. Michael Merrill

"The second quarter (April, May, June) went by very fast due to many events and travel. As I was looking back on the quarter for this report I was surprised at all how much had happened! The KmikeyM.com market is still undergoing some final tweaks, but trades are happening and more people have been investing. I'm looking forward to telling you about the exciting present activities, but that will have to wait until the next quarterly report."

Overview

K5M is a virtual, fully-functional stock market where anyone can own a part of me and all my future projects. While it is a market, financial profit is not the goal, although that might very well happen: it's about a group of people working together in a new way. By using an adapted structure of the market economy, the shareholders and I have a ready-built mechanism for operations, accountability, and measuring success that is not only well documented but also easily understood.

Overall Highlights

• The market works, but we're still working on a few user interface aspects which means the auction is still postponed.
• Second quarter financial growth was 17.86%.
• The user count is up 42% (21 additional people).
• The stock price seems to be hovering at just above $2 a share, making the estimated value of the KmikeyM project $210,000.00.

Specific 2nd Quarter Activites

April

• Held the first annual UrbanHonking Blokus Trigon Invitational. Placed second.
• Completed 38 short "daily" videos.
• Attended the Third Annual UrbanHonking Executive Retreat with Curt and Steve.

• Held the UrbanHonking Pistol Competition. Placed second.
• Held the first KmikeyM Annual Shareholder Meeting on May 17th.
• Travelled to Orlando, FL to attend the SAP Sapphire conference.
• An interview in Sputnik magazine (the "Mexican Wired") was published.

• Co-created and competed in the 7 vs. 7 challenge, a week long series of videos.
• Acted in the most recent YACHT music video.
• UrbanHonking founders took a trip to Los Angeles. Met with many amazing people.
• Participated in a water treading competition. Placed second.

Active Project Progress

UrbanHonking is behind schedule. The redesign is incomplete and the new blogs have not been launched. Most of the UH activity in Q2 has been small bug fixes and tweaks to the system in order to get things running smoother. Rather than a comprehensive redesign we've moved to an organic redesign structure that mimics the original creation of UrbanHonking. While it will move slowly, it will also be more true to the spirit of UrbanHonking.com.

The new UHX has been a very big success with the move to Vanilla based forums. We're currently at 65 members. UrbanHonking has a Total of 75 Blogs, 71 Users, 35 of which are Active Users* and 61 Blogs.
(*Active Users are those who have logged in within the last 90 days)

The UB3 DVD is still in development. Plans have been made to record a commentary track. Release will likely be in Q1 of 2009.

No additional beers have been posted. At this point we should have 247 beers, and we have 61. 1000 beers is monstrously behind schedule, and will remain so until after the 2008 election. Taking into account the effect of the election, we knew this project would suffer during this time, but we are still very far behind.

The number of entries remained the same as last quarter at 17. Comments are not working, but a plan has been put in place for a redesign in Q4.

No news coming out of our operations in Africa at this time.

Contact

Please contact kmikeym@kmikeym.com if you have any questions or comments.