Replies to post #1244 on JanOne Inc (JAN)

[Principian]

No revenue for Geotraq and I have yet to see any filings at the FCC. Without those Certifications there absolutely will be no sales. They also have not applied for an FCC Exception, which this would be an appropriate route to go down, but has a drawback of then pushing Product Certifications onto the Companies that would integrate this Cellular Module into their own Products. To get the Exception, they basically would Piggy-Back onto the Certifications done by their main Chip Supplier - Sequans. I suspect they more than likely are getting into issues of dealing with Batteries and Antennas. There also is a fair amount of S/W and APIs that would need to be Designed. This amounts to a Buy vs Build Scenario. Its hard to tell exactly how much Geotraq possibly is spending either on Employees or on any Outsourcing.

From what some of the Geotraq Website is stating on Certifications is they are targeting Verizon, AT&T & T-Mobile. Therefore, this means this solution would only be usable in the United States. Hardly a World-wide Solution as they are Advertising. They'll need Certifications in each country they intend to have the product operating. Also it appears any mention of Gregg Sullivan's Patent are fully Scrubbed. Being in the Telecom Industry, they are a "Day Late and a Dollar Short". The Mobile IoT Market is massively saturated from the Established Players. In fact, you can buy the same Sequans Chip in an established product Direct from Verizon for as little as $6.50.

Ask yourself, if you are a Corporate Buyer or even a Product Design Engineer, are you going to go with a Company such as Geotraq that has a NON-Standard Form Factor Product and has NO Track Record or are you going to go with a more Established Player??

The more time goes by the worse this Uphill Battle will become to win any kind of Market Share. Real Customers in dealing with Telecom Products are highly "Conservative", so winning over an "Early Adopter" in this Market is now going to become very unlikely as Companies have already deployed and tested out the Products from these Existing Vendors. It will take more than a Hot Blonde Marketing Chick generating Hype to make this a Success.

As well, this BioTech Move. This is by far sets off so many Red Flags for Shareholders. With a Negative Working Capital and already having Operational Expense Issues, entering a new market is crazy especially considering they hired a Celebrity Influencer with his own issues in Judgement and Behavior are concerned.

Meanwhile, here is a quick rundown on some Financial Metrics of JAN/ARCI.

Working Capital: -$2.319 Million
Book Value: $16.704 Million
Adjusted Book Value: -$1.489 Million (Book Value - Intangible Assets)

It will take me a bit to look at all the other Financials I am tracking.

Stay Tuned...

Intangible Ratio: 54%

[DJ Ponder]

LMFAO
SUCH A DEAL.

On August 18, 2017, the Company acquired all of the assets and capital stock of GeoTraq by way of merger, the result of which GeoTraq became a wholly-owned subsidiary of the Company.
The final fair value of the single identifiable intangible asset acquired in the GeoTraq acquisition is a U.S. patent USPTO reference No. 10,182,402 titled “Locator Device with Low Power Consumption” together with the assignment of intellectual property that included historical know-how, designs and related manufacturing procedures was $26,097 which included the deferred income tax liability associated with the intangible asset. Total consideration paid in connection with the acquisition of GeoTraq consisted of $200 in cash, unsecured promissory notes bearing interest at the annual rate of 1.29% maturing on August 18, 2018 in the aggregate principal of $800, and 288,588 shares (exact number) of Series A-1 Preferred Stock (as defined below) with a final fair value of $14,963. See Note 17 – Series A-1 Preferred Stock. In connection with the acquisition, an additional intangible asset amount was recorded in the amount of $10,134 and an offsetting deferred tax liability recorded of the same amount, $10,134, to reflect the future tax liability attributable to the GeoTraq asset acquired. There were no other assets acquired or liabilities assumed.
At the time of the acquisition of GeoTraq, GeoTraq had no business operations, one intangible asset and historical know-how and designs. GeoTraq is in the development stage.


GOOD GRIEF