FF-
Some significant factual GPSi history-
- Company starts via reverse merger, shell corporation with a company who's leadership has been under indictment and with a lengthy trail of fraud claims against them (I have not confirmed any incarceration)
- GPSi has 3 company officers previously incarcerated for felony convictions
- A Trust is formed with a contractural agreement in which they are paid off top line revenue and they have non-dilutable percentage ownership (This kind of deal typifies a negotiated settlement due to a strong claim against company, but I cannot confirm details)
- GPSi leadership enters into multiple high interest loans with people closely tied to the company itself (desperation requires, do what it takes to keep doors open, I'm just not fond of close ties)
- GPSi leadership initially releases PR's when new jail contracts are signed (along with some other positive company news items)
- GPSi creates and sells a licensee program to sell product that gets GPSi cash and some initial growth (licensee program disappears)
- GPSi releases unaudited financials and states clearly they do not follow GAAP accounting rules (i've reviewed that release and it's very unprofessional)
- GPSi makes public statements of new coming transparency and promises release of audited financials (multiple communications after the announcement that they are coming)
- GPSi holds an investor meeting and announces a reverse split that clearly benefits insiders
- GPSi goes quiet, does not release financials and has zero public communication for about the last 12 months (were probably given excellent advice by an attorney to just shut up)
That is some strikingly scary info for an investor. However, conceptually this is a solid to good business idea with incredible upside opportunity. GPSi has landed business in both jail and municipality space showing proof of concept. Appears there could be additional offshoots of the concept into other industries.
Disclaimer- I'm embarrassed to admit I've done more DD in the last month then I did prior to investing, mainly because I liked the concept. I am very confident I have the above facts correct, but not 100% certain. There is much more that could be added to that list.
Diagnosis (From a public investor perspective)- Inexperienced leadership in key positions within the company. Decisions show lack of cohesiveness and a strategy to grow the business.
Cure (that benefits public side)- Hire credible COO and Sales Director, Create a real Board of Managers and surround Ron Hodge with professionals who will provide proper business advice.
Prognosis (for public side to get a return) - Very slim if operational changes are not made.
