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GUY ELHANANI was apparently the CFO of EZTrader, a Binary options company which was outlawed in Israel and the U.S.
Right before joining OMNIQ, they got $1.7M fine from the SEC for fraud.
SEC Public Statement
EZTrader was going by the name "Win Global Markets" or WGM, and was registered in Cyprus... Sounds familiar?
WGM filing with Elhanani as CFO
Also, turns out Elhanani was the CFO of SIRIN LABS,(SIRIN AMA another Fraud related to Moshe Hogeg, who is related to Celsius Network, which brings up another name... YARON SHALEM, the other OMNIQ director...(YARON SHALEM)
This is extremely concerning, from their last 10-Q.
Q3 of 2023 was the worse Quarter in 5 years.
Revenues are down by a third! yet expenses are up.
And Q Net loss is up to $4.3M the largest in company's history!
With its total debt to vendors and a $96M in Shareholders deficit this company can no longer recover. Looks like their cash at hand can sustain them for what?
Another 5 months?? They will be delisted by then!
Sources within the company reveal that their latest "project" with the Port Authority was only an upgrade and maintenance of software, valued at $80K.
Fake News
Lustgarten at the ThinkEquity conference.
"It's real AI"
"It teaches itself" (Well hack isn't that the definition of AI)
"We doubled the company in two years"
Some Friday entertainment
"On July 10th2023, the Company announced that it had entered into a definitive agreement to acquire Tadiran Telecom for $15.25M with a 60 day closing period. As a result of certain conditions not being met, the Company along with Afcon Holdings LTD have mutually terminated the agreement."
Hmmm you mean you can't get a loan because your accumulated deficit is 10 times your market value?
Utah Federal Court decision is now public record.
OMNIQ have no protectable Intellectual Property, treat employees, vendors and customers like trash, have lost a 4 year litigation while spending millions on lawyers!
Impressive!
Court 120 page decision and order points out the convoluted corporate structure and the abusive litigation practices as well as the family relations of executives:
More meaningless news this AM. The El Salvador airport has parking lots that are served by two lanes of traffic. so at maximum they got 4 sets of cameras. NOT news worthy. in addition, TAS has been an HTS partner in Central America since 2017.
More Hail Mary PR
It's Down 35% But OMNIQ Corp. (NASDAQ:OMQS) Could Be Riskier Than It Looks
Unfortunately for some shareholders, the OMNIQ Corp. ( NASDAQ:OMQS ) share price has dived 35% in the last thirty days...
Read in Simply Wall St: https://stocks.apple.com/AdjyGAYgZSIWRFfJgBM_rGA
Shared from Apple Stocks
When they bought HTS they stated in a press release:
https://www.globenewswire.com/news-release/2018/10/11/1620033/0/en/Quest-Solution-Announces-the-Acquisition-of-HTS-Image-Processing-Inc-a-Leader-in-Artificial-Intelligence-Based-Automated-Vision-Solutions.html
"For fiscal year 2018, HTS is expected to generate approximately $10 million in revenue with operational profitability and average gross margin of approximately 38% -- significantly higher than Quest’s average gross margin of 21%"
The court noted: "[HTS] Revenue for fiscal year 2017 increased to $4,094,000 - the highest record for the company." It declined after they acquired it because they did not pay their vendors.
They destroy everything they touch!
Well yeah. that is the conflict of interest where the consultant gets commission for both the acquisition and the debt financing in his $30K a month contract...It's like going long and short on the same stock
As predicted.
Hail Mary PR's will continue.
"On August 9, 2023, the Company received a deficiency letter from the Nasdaq Stock Market advising them that based on the Company’s Market Value of
Listed Securities (“MLVS”) for the last 32 consecutive business days, the Company no longer meets the $35 million standard. The Company has 180
calendar days to regain compliance."
it is a 120 page decision and order.
They filed Intellectual Property claims against a competitor in 2019.
In layman terms, the court concluded that what they claim as their IP (intellectual Property) is very basic level industry knowledge, which they fail to protect properly.
A few other notable mentions is the convoluted corporate structure, The family relations between the Nissensons, and the way they mistreat customers and employees.
The whole document should be unsealed and available to the public in a couple of weeks.
On August 3rd a Utah Federal Court handed OMQS a major blow. They lost a 4 year long litigation they spent $Millions pursuing. They never disclosed it in their SEC filings.
They delayed their Q reporting by 5 days till Monday.
Prediction: a hail marry fury of press releases and possibly a Q report that is so unrealistic based on their past. It's crunch time and they will do anything to pump before they dump.
https://s.ipvm.com/uploads/embedded_file/663784c1761d66631c4882dcdd70418f9814fff56da50a228e97ea4e711ace67/2b13a4c3-170c-496d-9461-bb2a00a9e2b7.pdf
"Houston, we have a new 5 year low"....
On Thursday, Alex Mashinsky of Celsius Network was arrested
FOLLOW THE MONEY!!!
In 2008 Xfone announced the acquisition of TT for $12.8M https://www.sec.gov/Archives/edgar/data/1126216/000110801708000150/ex991.htm
What's the connection?
CONSULTANT/FATHER of... Now (https://www.sec.gov/Archives/edgar/data/278165/000149315220003352/ex10-3.htm)
AND then (https://mayafiles.tase.co.il/RPdf/243001-244000/P243339-00.pdf)
Conflict Of Interest? Why incur more debt?
For personal gain!! This acquisition is double dipping opportunity:
5% for M&A + 5% for Debt Financing is in the contract !!
READ IT!
All their court filings paint a picture of a shady organization.
In every action their first motion is to seal the court documents from public view!
It's a lie. according to pacer.com this case is still pending and the current document count is over 300 with over 10,000 pages submitted. The last motion in that case was to Pierce the corporate veil.
Case 2:19-cv-00437-CW-DBP Pending in Utah Federal Court.
They have two more pending cases in San Diego Superior court.
Which OMNIQ? important for the regulators to realize there are many shells involved in this scheme.
Another OMNIQ support-team member is out the door. Following his Linkedin feed he mostly complains about leadership...
https://www.linkedin.com/posts/steven-ruch-0a229926_i-am-excited-to-announce-that-i-will-be-starting-activity-7078384380259274753-_3GD?utm_source=share&utm_medium=member_desktop
Here is Lustgarten lying again, this time under oath, in a deposition.
He says he "does not know" how Haim is listed on their SEC filings while the last frame clearly shows he signed for Haim/Carlos on their HTS purchase agreement.
Liar in Chief just can't keep track of his own lies.
This is not accurate. His contract is for $30k a month from OMNIQ plus $10k a month from HTS. its all here https://content.edgar-online.com/ExternalLink/EDGAR/0001493152-19-013874.html?hash=f2f55b03dd61e9ec5df68062a4c7d2834c41d95dcd14c892ad05d2bc100560a2&dest=EX10-2_HTM#EX10-2_HTM
but You are missing the point.
Haim is the puppet master in all this. They can't fire him because this whole ponzi scheme is his brainchild. He's been a consultant to his children's public companies since early 2000's
1- https://www.sec.gov/Archives/edgar/data/1383637/000110801711000083/ex103.htm
2- https://www.sec.gov/Archives/edgar/data/1126216/000110801705000145/ex1046.htm
3- https://mayafiles.tase.co.il/RPdf/243001-244000/P243339-00.pdf
I'm not an accountant but they have an Accumulated Deficit of $88 Mil
? Working capital deficit of $39.6 million as of March 31, 2023
? Accumulated deficit of $88 million as of March 31, 2023
? Multiple periods of losses from operations
? Noncompliance with certain debt covenants
Either way their the company is worth less than its current liabilities.
Rumors are they fired a few of their support folks and their reputation is tarnished
Looking at their Linkedin page they seem desperate to share AI "News" even if such news have nothing to do with what they do. https://www.linkedin.com/posts/omniqcorp_ai-transformation-innovation-activity-7069340967329280000-5z1i?utm_source=share&utm_medium=member_desktop
They are in a hole of $88 Million
Diminishing margins in the OCR/LPR business as the product falls into commodity level.
Their financials fail to show which business unit does what, but the only way out seems to be to take it apart and sell the parts. They may still evade liability because majority shareholders are registered outside the U.S. and hold company assets in shell companies in Cyprus
They Keep borrowing money to maintain the $2 Million CEO, CFO and his father pay themselves annually.
During the year ended December 31, 2022, the Company entered into five short term loans totalling NIS 26.8 million, approximately $7.6 million. The note accrues average interest at 6.3% per annum.
As of March 31, 2023, the Company was not in compliance with certain financial covenants related to the Bank Leumi and Bank Hapoalim debt. The Company’s failure to comply with these financial covenants could result in an event of default under its debt agreements. Therefore, we reclassified the total balance as current debt on the balance sheet. The Company is actively pursuing options to address its noncompliance. The lenders have not requested early repayment of the loan as of the date when these financial statements were available to be issued.
NOTE 2 – LIQUIDITY AND CAPITAL RESOURCES
The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. The following are the principal conditions or events which potentially raise substantial doubt about the company’s ability to continue as a going concern:
? Balancing the need for operational cash with the need to add additional products
? Timely and cost-effective development of products
? Working capital deficit of $39.6 million as of March 31, 2023
? Accumulated deficit of $88 million as of March 31, 2023
? Multiple periods of losses from operations
? Noncompliance with certain debt covenants
Important article. OMNIQ does NOT have AI, it has an OCR engine, also known as Machine Vision. It was built with open source OCR engine.
Don't buy into their hype.
https://slate.com/technology/2023/05/artificial-intelligence-hype-ibm-ftc-twitter-threadbois.html
Just a reminder of who these people are.
Note the address on SEC filing is in Tel Aviv. When you Google it, it doesn't exist...
This is true for all the directors of #OMQS... They file fake addresses
Be careful here!!
https://omniq.com/investor-lounge/#popup_yaron_shalem_
https://www.timesofisrael.com/another-2-leading-israeli-blockchain-pioneers-named-as-suspects-in-vast-crypto-scam/
Here it is. The recent activity is from insiders exercising their 2018 grants which expire last week. https://www.sec.gov/Archives/edgar/data/1716133/000149315223007055/xslF345X03/ownership.xml
Their latest press release about Airports was a project awarded a year ago. They waited for the right timing for this PR. Also, money wise that project is under $500K in revenue and OMQS/HTS historically lost 20% on airport projects.
Sorry if the reality doesn't fit your hopes.. Just providing the information so you all can make educated decision with your money
Wonder why all the activity today? As predicted a few months back, the insiders exercising their option which expire this weekend...
CAN SOMEONE PLEASE EXPLAIN THIS??
I am looking at the list of names of employees (Page 21) who are offering their stocks and stock options for sale.
Some of those employees are giving up their complete ownership of the company. For example, Guy Dangot who I am guessing is the son of the owner of Dangot (Recently acquired) is giving up his complete portfolio (51K share vested and unvested)?!!
Is this normal? If so, what is the purpose?
I don't want to make assumptions or statements without understanding this..
https://seekingalpha.com/filings/pdf/16368997
https://ipvm.com/reports/favorite-and-worst-lpr-anpr-providers
These losers are not even mentioned by name in this widely covered article...Rekor is there, but also as a small player...As if OMQS doesn't even exist!!
Not just their CEO. The majority of their employees are getting rid of all their shares
https://seekingalpha.com/filings/pdf/16368997
Here is another one: https://www.sec.gov/Archives/edgar/data/1383637/000110801707000054/ex102.htm[3/21/2022 10:32:42 AM]
"Phoenix International Ventures Inc (PIV) of Carson City Nevada, PIV is owned Mr. Zahir
Teja, the Nissenson family and others.
Anney Business Corp. (Anney) of British Virgin Islands, is wholly owned by the Nissenson family.
PIV retains Anney in order develop the business of PIV by adding the experience and expertise of Anney's management in the fields of defense
aerospace industry as well as financing, business development and public company
management."
Page 80 of this SEC filing shows beyond reasonable doubt that this is not the first "Rodeo" for the Nissenson family. Person known now as Carlos Nissensohn was Haim Nissenson back in 2007. Different business, same swindle, same swindlers. Even Itzhak Almog, former DOB is there... (signature page 114)
http://pdf.secdatabase.com/1163/0001108017-07-000424.pdf
Here is Dionysos FB page: https://www.facebook.com/profile.php?id=100044435352782
"The parties agree that Dionysos Investments will be compensated by the Company for the Services provided to the Company in the amount
of Eight Thousand British Sterling Pounds (£8,000) per month, beginning on January 1, 2007; (ii) In addition, the Company will pay Dionysos
Investments a one time success fee in the amount of Ten Thousand British Sterling Pounds (£10,000), for initiating, establishing and developing
the relationship between the Company and certain Israeli financial institutions during fiscal years 2005-2006, relationships which resulted in
significant investments made by certain Israeli financial institutions; (iii) In addition, the Company will pay Dionysos Investments a success fee
for any future investments in the Company made by Israeli investors during fiscal year 2007, provided such investments were a direct or indirect
result of the Services provided to the Company. The success fee will be equal to 0.5% (half percent) of the gross proceeds of such investments"