On4 Communications Inc (ONCI)

[tigerpac]

It has been six months since the first Shareholder letter was released. I thought it would be fun to go back and comment on how things have progressed. My comments are in bold. I'll review the following months shareholders letters in the next few days.

https://ih.advfn.com/p.php?pid=nmona&article=76633594

NEW YORK, Feb. 05, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- ON4 Communications (OTCPINK:ONCI) -- Below is an update of most everything that is going on at the company, some you have heard about and some are new. I will be discussing everything that I can talk about.
Financials

We had a stellar year, grossing over 1.8 million from nothing last year we were up 50 plus percent quarter over quarter and far out-paced expectations. Looks good With regards to the 2-million-dollar payment that was to buy the remainder of FMS marketing that we did not own paper transaction, money has not been paid so far, sits on books so if he does sell company SB gets paid first,

Alan Baily and I are in negotiations with the Del SOS to reduce the debt owed. The debt is nowhere near $900 thousand that is a number that they put on all companies until they file. No update in six months don't know what SB thinks his debt is . Is that debt even in the financials?

In regards to the share reduction I stated on page 2 that the reduction has been reported with the Colorado SOS and is under Hexagon Holdings. As soon as we get approval, the share reduction will be in place. SB made proclamation to reduce on July 4 I have also reduced my commission rate to 12.5 percent, a 50% reduction, so we will have more cash for all the things we need to do. He did reduce commission to 12.5% but is he accruing the other 12.5% for later payment? Overall, I’m thrilled with our financials and we are growing very fast signing deals every week.

KL
We are in the process of making our mold, which will allow us to reduce our costs by 50%. Each mold can make 150,000 to 200,000 units. Later reduced to 75K-100K units. I will be travelling back to KL to start production shortly.

Garden City Group
They have 150 units and are selling now. I will be reporting sales at the end of the month. SB Never reported those sales

Penn Group
They have units and are selling now.

H Group NY
They have units and are selling now.

Gunther Fla
All stores have units and are currently selling.

San Antonio
I am told by my Rep. Scott Wells that we will be getting an e mail with bid requirements shortly. Nothing ever moves fast with Government. Haven't heard anymore during the next six months.

Municipalities
We are in discussions with a group that sells software and hardware to all government agencies both Local and Federal in 21 countries. I will release the name when a contract is signed. Haven't heard anything more during the next six months.


Growth of our marketing team
We have engaged two major automotive after market product sales agencies. These agencies sell into multiple channels in the automotive industry including but not limited to internet sales, direct sales to the major auto parts chain stores, direct sales to auto parts distributors, wholesale warehouses and direct sales to automotive dealers. The combined total of new sales representatives is 21 now covering more than 50% of the country. Capoli and Lemoine

We are near completion with signing contracts with 2 other sales agencies that will bring another 29 sales representatives that would cover the entire US. In addition we are in negotiations with another two agencies that cover big box retailers such as Target and Best Buy to represent bSafeMobile. Haven't heard an update unless this the veiled refence to private label brands. We are in discussions with our partners in Great Britain to take over all of western Europe and meet with them in mid March when they come to the US. Cataclean would be the partner but since we know Cataclean is not selling bSafemobile how are they going to expand to Europe?


bSafeMobile has updated its back office systems (inventory control, accounting, billing, invoicing, etc.) to handle the expected increase and sales activity generated by these sales agencies. That's great. Are we talking about SB or Bailey or Cogosense? Billing and invoicing are the same thing. Maybe he meant collections because that needs the most help.
USW
We will be implementing sale in 2 dealerships in South Fla next week and working out all kinks until we roll out in Fla first. Good start.


MIDDLE EAST
Working with Consulting/distribution agent Mr. Graham Bell. Graham has very good relationships with the Auto and technology industry throughout the GULF region including UAE and Saudi Arabia. Just returned from the region last week.
DUBAI TAXI CORP
The main purpose of my trip was to push our current best prospect Dubai Taxi “over the line” into a test mode. From there I (Graham also) can follow up and, subject to a successful test, move towards closure of at least initial unit orders. The objective is to close these initial orders and then ramp up orders over the coming months. Dubai Taxi Corp has 5500 in their fleet. Following the installation, the IT guy I was working with, Osman, was then confident to be able to download the Fleetsafer software to his computer. We have a deal memo on the table. Six months later - nothing. Maybe he needs 1-2 years to close deals? If so just say so

COLONY TRUCKS - KUWAIT
Had a very long meeting with this company. They have over 1000 trucks and construction machinery in their fleet. Went through all the advantages of Fleetsafer and how this can manage their trucks, buses, etc. as they all travel throughout the Gulf region (not just Kuwait). Jamil Malik and Alvin Lewis are the key guys there and agreed to test the system. Graham will be sending them 2 units now for testing. I will follow up with them in a week to make sure they received the units and get them to start a test. Will contact the team in Vancouver again to walk them through it. Six months later - nothing.

MERCEDES TRUCKS/VANS - UAE
Met with Navin Sook, their head of Fleet management and Safety/Security features. In addition to just selling/leasing their trucks/vans he also makes sure to sell them the additional features package, which includes many of the already existing Mercedes features such as automatic breaking, tracking, etc. We discussed including the Bsafe/Fleetsafer software as part of their package offering. He said it could not come as part of the Mercedes package as Mercedes only puts their own items in a package. But he said he could potentially “bake” it in as a separate item but included in an overall price. I gave him a unit to test and will follow up with him again in a week. Six months later - nothing.


Al FUTTAIM MOTORS
Had confirmed meeting with the CEO Len Hunt whom Graham and I spent time with at the auto show. Two hours before the meeting I had a call from his office cancelling the meeting but putting me onto their Head of Multi brand services, Omar Edris. Graham will go over and see him with a unit to test. This is another one where we could be sold in the after sales packages. I will follow up with him after he’s had a chance to test the unit, give feedback, and provide some proposal options. Six months later - nothing.


WEHBE INSURANCE
I met with Omar Wehbe, who runs one of the 3 top Insurance companies in the Gulf Region. We reviewed Bsafe and Fleetsafer, He saw multiple benefits for Insurance companies but also has good relationships with other Fleet and auto companies. He wanted some time to think about how best to use the technology. He said the best thing to would be for me to let him know next time I’m out and he would arrange further meetings/intros as well as propose what he would do with Bsafe. Six months later - nothing.


OTHER ACTIVITY
Graham and I are also working on:
- Dubai Police (Colonel Al Masri)
- KIA Motors Middle East
- Volkswagen Middle East
- CAREEM Middles East (Uber equivalent)
- Al Tayer Motors
- Juma Al Madjid Group (Hyundai)
- Sheikh Saif’s office in Abu Dhabi (Antoine)- potential Master dealership
- SAPTCO Bus company – Saudi
- Al Naghi Group (bus/trucks) – Saudi
- Tamimi Transportation – Saudi
Graham will go to Saudi first or second week of February and meet them.
We currently have 2 other deal memos on the table and are meeting with other potential clients as well. - Six months later - nothing.


UK
Working with Consulting/distribution agent Mr. Gordon Poots, who is based in Belfast, Ireland. He has very good relationships throughout the auto and tech industry in the UK.
He has sent brochures and following up with the companies listed below
- Vendigital automotive technology distributor
- SFU- major Fleet Company- 6000 + cars/vans
- SLOANS- major Fleet company- 8000 + cars, minibuses and vans
- Addison Lee- Major Fleet company- 12000 vehicles
- OH Vehicle Conversion company- Upgrading/modernizing classic and contemporary cars through the UK . Six months later - nothing.

TURKEY
Working with a new agent in Turkey, Mr. Murat Kortan. He is owner and principle of Kortan Consulting. The company identifies new products and services into the Turkish market primarily in the Insurance, Dealer distributor/Agency business and new technology distribution.
Have had 3 conference calls with him including one this morning. He has all the brochures and is sending them out to his contacts and following up. Next step is to arrange a call this week with S. Berman to review questions and discuss commercial terms for the Turkish market. Turkey is 80 million people and Murat feels this could be taken up by at least 500,000 to 1 million users. Six months later - nothing.


SERBIA
Bsafe technology has been presented to senior government officials who seem interested in potentially legislating the mandatory use of this technology in the country.
In the meantime, the Government has made introductions to the top 2 Insurance companies in the country. They are TRIGLAV Insurance Run by Dr. Dragan Markovic and AMS Insurance run by Mr. Dejan Jevtic. Between the 2 companies they provide coverage for 83% of all Fleet, Taxi companies, Buses, and delivery services companies in Serbia. They both have units after testing will follow up in the next 2 to 3 weeks.
BULGARIA
Have recently found a very good consulting agent, Mr. Rossen Tzvetkov. Bulgaria is part of the EU and need to comply with the EU regulations for distracted driving. I sent Rossen some units and he is testing now. He feels it is a very good idea and that over time the country will need to comply with these laws. So he is already speaking to some insurance agencies, Fleet companies and the police to help support the effort. He will get back to me. Six months later - nothing.


Uber
I have had 1 meeting and 1 conference call with them. Bsafe will not work for them. Fleetsafer is the play and we have to make adjustments to the software to do what they need done. Our tech team is working on this ASAP. ok - bSafe is not the product for them. Fleetsafer -- still no deal six moths later. Work in progress.


Amazon
We will be back on Amazon next month. Capoli took over Amazon account . Have sold six units in six months at prices from $279 - $319.


Facebook
Fly has created some new ads for us and we will be rolling them out within 2 weeks with a better understanding of the right targets. Ads did show up .

I will be sending out another update with more activity as soon as I get the answers back from our reps, including more dealership activity as well as other things we have discussed in Press Releases over the past year. yes .constant tweet updates about dealerships. We will also be discussing all arms of Hexagon. yes, SB did talk about this again and again in future shareholder letters
As you can see we have so much going on and are poised for major growth. We truly are a global company and have come from nothing to all this in less than 2 years. This is only half of what’s going on at ONCI/Hexagon. And as I said there is so much more and it will appear in the next update.