On4 Communications Inc (ONCI)

[tigerpac]

Listen I think there are units being sold but nowhere in the quantity the company is claiming on their financials. The revenue recognition is vague claiming that they can bill the contract value in advance. Who determines that contract value? None other than the CEO himself. Nowhere does it say that he has to ship out all the units in that contract value.

Why do you think the A/R is so high? 78% of the sales billed from 1/31/17 are still uncollected. The decrease in A/R on the cash flow statements are not coming entirely from cash collected. Some sales are being reversed as contracts are being terminated by dealers.

The first thing an auditor would do is to verify the A/R. They would send out statements to various customers asking them to confirm invoices, terms of sale, and in some instances would ask to verify inventory. I would bet that the customers statements of what they believe they owe and the terms are far different than what is being disclosed to shareholders. That's why you'll never see an auditor tackle this issue unless the company somehow pulls off a miracle and really does succeed and by that time he'd be able to cover his tracks.

IMO, the CEO is trying to land a couple really big fish in order to blur the reality of what has been occurring to date. At this point he will need to sign a couple $5 million deals to offset all the other "deals" on the books that have not been paid and imo never will be paid.

Whether the device is the best on the market is just an opinion. Being best doesn't guarantee success. Being overpriced can guarantee failure because it mean lost opportunity.

One day the real story will come out. Use the late 2017 conference call with shareholders as the benchmark for most of the CEO claims and it's hard to take anything he says seriously at this point.


Where are all those factories in Europe and Asia that he was going to buy and run 24 hours a days?

All this is IMO based mainly upon the financials and the CEO's own statements.