My questions for today's earnings call.
As a former user of Biotrack's traceability system and commercial system in Washington I've followed Biotrack for years. My question got skipped on the last earnings call so I am posting all of my questions publicly so that it can be seen whether skipping me last time was intentional or an honest oversight. ir@helixtcs.com, if you are reading this, please at least acknowledge the existence of the questions even if you choose to not answer them.
My question was skipped on the Q3 earnings call and I resubmit it for today's earnings call.
You announced in February 2019 that Former President of Mexico Vicente Fox was to join Helix TCS's board of directors. I have not seen any updated filings regarding that announcement. My questions are: Is Mr. Fox a member of Helix's board of directors? If not, does he still intend on joining the company's board? When can shareholders expect an update one way or the other?
I also have the following questions.
You said on the last earnings call, "the market really hasn't caught up with the full value proposition in our view." In spite of the dive in the stock market, your direct competitor KERN is at a $64M market cap while HLIX is at a $12M market cap. Does company management believe that it is a peer of KERN and should be valued in the same range as KERN? If so, to what does company management attribute the fivefold difference in valuation between the two companies?
Many shareholders are concerned that in spite of assertions that the company is worth more than what the shareprice reflects, company management continues to sell shares at prices below 15 cents. Though it may be inappropriate for management to cancel specific sale orders out of concern for insider trading issues, it is NOT inappropriate to simply cancel a 10b5 plan in its entirety at any time. Even assuming management cannot technically undo a 10b5 plan already in motion, management could practically undo such sales by implementing a 10b5 plan that purchases company shares right back so that the net effect is zero. Why should those of us who own shares continue to hold on to them or acquire new shares when management is content with selling shares at current prices when the 10b5 can be cancelled entirely or counterbalanced with corresponding purchases?
Final question on share price. Rumors are flying around about shareholder Steven Siegel (aka ExpensiveGuy) selling shares and putting downward pressure on the shareprice. According to SEC filings Siegel owned in excess of 10% of the company's common shares as of the Q3 2019 10Q, which would require him to report all sales on a Form 4 until his holdings fall below the 10% threshold. Has company management been monitoring and enforcing SEC compliance with respect to executives, board of director members, and 10%+ shareholders to make sure company stakeholders are adhering to SEC regulations? If not, what exposure does the company have to the SEC if any of these actors have violated SEC reporting requirements? If yes, will the company fully cooperate with the SEC or other law enforcement agencies should anyone be found to have violated SEC reporting requirements?
The Maine contract was not worth a large amount of money and I would not expect its loss to significantly impact revenues. However, it is the first government contract I know of that was cancelled before system launch. Does the company intend to continue pursuing government contracts? If so, can management provide color as to what happened in Maine and why shareholders can be assured that it won't happen again?
Seedtosale 2.0. What is the status of the development/launch of BioTrack's next gen product and how does management expect it to affect 2020 financial performance?
Can you provide any insight as to the revenues and expenses that the Americanex acquisition has added to the company's financial performance for 2019? Do you have any guidance as to how Americanex will affect company financial performance in 2020?
Thank you
