On4 Communications Inc (ONCI)

[On2_addict]

ONCI claims to sell units to it’s subsidiary Cogosense. They in turn ship units on consignment to any dealership that will take them. If the dealership makes sales they pay Cogosense who then pay ONCI.

That is likely why there is such a HUGE Accounts receivable number on ONCI’s books.

It is a shell game. Actual sales to customers (not dealerships) are VERY low.

My guess is that actual sales per quarter are around $150K which explains the low shareprice.