I have yet to even see Pierre file the FCC forms for Basic Certifications for this so called new NB-400. My intel also has it, Gregg Sullivan left Las Vegas. I thought it was kind of interesting Pierre had a Press Release recently that Geotraq joined GSMA as an Associate Member and then the PR went about on Hyping how Geotraq was going to Revolutionize the Telecom Industry. Very Lofty Sentiments.
Only item I noted on this latest 10-Q was ARCI booked $200K in Inventory for "Raw Material - Chips". Would be interesting to understand which version of the Monarch Pierre purchased. There was a Sequans Press Release 2 months ago on a new updated Version of the Monarch he chose to use. So if he bought prior versions, he already is a Day Late and a Dollar Short. The 5G Deployments are already in Trial on IOT and Verizon is selling the Sequans IOT solution for about $7 and that includes the POLTE Code. I got hands on a few. But one thing that still doesn't work well for my main solution is Z-Axis Altitude for In Building Coverage and it still isnt ported to the 700Mhz Public Safety Bands and that is where I had a serious Use case for Geotraq all last year. The market moves fast... pierre also appears to be marketing an IOT Sensor Solution based on the Monarch. The Monach has very limited Analog and Digital capabilities that only operate at 1.8, 3.3 or 5Volts. This is very limiting and he will miss the boat on what is considered "Industry 4.0" as well as the huge market in basic Water, Gas, and Electrical Sensors for Home and Business. I have tracked 4 huge Asset Location Deals Sequans did this year and last. Sad to say but who is going to go to a Reseller for any kind of Volume when you as a Buyer would just cut a deal with the Key MFG as well as the Network Carriers to operate the Solution.
We now are almost at the end of August.
ARCI is still Booking this Geotraq Patent at Acquisition Cost vs Fair Market Value. No license fees nor any lawsuits to Patent Infringement either. 2G and 3G Frequenxies and Technology are now all End of Life in favor of 4G/LTE and 5G Non Standalone Radios. The carriers are going to redeploy those 2G and 3G Radio Spectrum into 5G.
Here is a sample of my numbers from latest filing:
Geotraq still has a relatively high Burn Rate. They are still averaging what appears to be about $100K per month. It went down this past quarter. I was expecting it to go up as that would be normal if Pierre is in final stages of an actual product hitting the market. Especially after thatassive layoff last year. He would have to be fully outsourcing this project and then to be successful, you would begin to shift to more Marketing and Sales Costs and that doesn't appear to be happening beyond doing a few trade shows and Stripper Girl doing a few more videos
ARCI crossed over in the Negative on Working Capital (-$3.198) Million. That should trigger a lot of Lending and Loan Covenants.
Adjusted Book Value also is Negative. (-$893,000)
ARCI began task in ng on more Short Term Debt ($698,000) as well as the Accounts.
Payable increased to ($3.777) Million which indicates they are paying their Bill's later than normal or they took on new obligations. The former normally is true in many cases.
One new Lawsuit was added that puts upwards of roughly $2 Million in Liability.
Recycling Revenue continues to decline. I wrote on this before. There are only so many old appliances to recycle. The Cost of Goods also rose and that concerns me because this means some underlying cost is eating them alive and will continue to do so.
