On4 Communications Inc (ONCI)

[tigerpac]

Hate to sound like a broken record but there are two things SB has to prove to me before I can get behind this stock.

1. Proof of full ownership of Cogosense. As of 4/30/18, the financials only show an 8% equity ownership. Before On4 was involved, Cogosense (and before that Aegis Mobility) were stand alone companies. FleetSafer was an existing product with existing deals already in place (like CNA).

2. Revenue recognition and Accounts Receivable. SB needs to come clean and definitely exactly (not vaguely) what his selling terms are. Cash collection of A/R, verified by cash flow statements needs to prove that terms are anything other than consignment at this point.


I'm still completely convinced that SB does not own any factories overseas and he is either buying product thru Cogosense and/or has a deal with a contract manufacturer to ship units directly to him. That is what the mold was for. Inventory of that size does not take up much space. He can probably get 5000 bSafemobile units into 25 master cartons and store them in his garage if needed.

If SB can pull back the curtain just a little more to prove these things then we would all be surprised with how this company could go. Continued reluctance to do so only hurts his credibility with some going forward imo.