5BARz International Inc. (fka BARZ)

[As I See It]

A couple of weeks ago Favorable1 posted a link to a product (Airspan) which looked like it might be a competitor of the Network Extender offered by 5BARz. I decided that would be a good excuse to reach out to IR for a comment on "Airspan" and anything else he might have to say.

Before I get to the "Airspan" response, IR wanted me to share some details on what investors might expect over the next several weeks. The first immediate goal is to get the 2016 10K filed. Shortly after that, they intend to file a combined report encompassing the remaining Q's and K's. Because the company is in the process of raising capital through an IPO in Canada and are not yet SEC compliant with their filings, they are keeping communications to the public at a minimum. Once the financials have been filed we should expect the financing to be completed and communications to ramp up.

The following are some of my own personal thoughts and theories:

When you read the summary of my discussion with IR, I think special attention should be paid to the discussion centered on "Remote Management" control systems. I would even go back and reread the press release dated 10/23/2017. I don't think the impact of this aspect of our technology can be overstated. I believe this is critically important to the network engineers as they try to maximize the effectiveness of their networks.

From the Oct. press release:

This location aggregated views of the 5BARz Network Extender will go a long way in mass deployment, asset tracking and further gives a greater input to the RF & Network Planning, and can possibly revolutionize the RF planning when 5BARz Network Extenders are mass deployed.

G Krishna Kumar, a Telecom expert and a thought leader in the space, says that the Telcos would need products to track and manage assets in the field. He sees the absolute need for products like the 5Barz Network Extender, for mass adoption into homes. Capturing most relevant RF parameters at the home level with location, by 5Barz Network Extender, helps Telcos to manage the service quality better. This also can provide a whole lot of input for future network planning for the Telcos.

I think most of 5BARz delays and missteps have been as a result of the Telcos moving the goal posts for the Remote Management technology embedded in our device. I don't think the basic antenna tech has ever been the problem. I think 5BARz thought they were ready to go more than once only to find that the Telcos had decided to request more remote management features. As a small underfunded company, each of those requests to tweak the tech. has put a severe monetary strain on the company. Management compounded the problem by going to some short term lenders who's initial terms were quite good but would turn toxic if not paid back within 6 months. They were too optimistic about when we could get to market and spent a lot of time, money, and dilution digging out of that hole.

I really believe we have something special. I also believe that the reports, on this message board, that Kaynes Tech. has begun some manufacturing makes sense in light of the Oct. press release. I think that marked the point at which we finally had a product that met the full expectations of the Telcos. If we can overcome the cash crunch and scrap up enough money to get the financials done, I think we will finally be launched.

The following is a summary of my conversation with IR:

The small cell solutions referred to in the links provided by Favorable1 are solutions that are planned in parallel to an in-building repeater solution for Enterprises. It doesn’t make any technological or economic sense to do this for home deployments. We are talking about two different business segments, an in-enterprise cellular coverage and in-home cellular coverage. 5BARz aims only to work in the in-home cellular coverage markets.

The 5BARz Network Extender is primarily focused on an in-home solution for under $250. All the 5BARZ Network extender deployments with the top two Indian Telcos, are for homes. Most Telcos are focusing on both in-enterprise and in-home solution as two separate business activities.

The 5BARz unique single box 2 antenna technology makes the Network Extender a powerful solution toward improving the last mile of connectivity for cellular devices. However, over the past couple of years Telcos have recognized that for 5BARz mass deployments to be truly effective that a powerful Remote Management system needed to be in place as well.

5BARz with its recently completed remote management system has also brought in a whole new level of Telco analytics at the home level. Telcos with the 5BARz deployments in the future will know the cellular coverage strength and other critical in-home parameters, which up until now has not been available to the Telcos. By improving the quality of service to their customers the Telcos expect to substantially reduce their churn.

Gil Amelio and Daniel Bland are planning to visit India within the next few weeks.