ONCI CC recap 2018 could be huge for Hexagon Holdings.
I have to admit, after listening to this call, I could have written an in-depth article on just 1 arm of the company, not to mention the app BSafe Mobile alone. For a holdings company… they have a great vision of having many holdings all creating revenues, all with just as much potential as the other. Steve Berman, CEO of On4 Communications, ran the call and hopes they are at the final stages with FINRA, attempting to change the company name to Hexagon Holdings Corp.
Since the company has 6 arms or holdings, the name “hexagon” was a perfect fit. Steve opened the meeting by sharing with with us how back in March of 2016, he had goals of turning a dormant company into something. So far, he is happy to go from a stock price of .0001 to .01117 since then (a 11,170% increase), but he seems far from satisfied as his enthusiasm poured into the explanation of all 6 divisions:
1.App & App Design
5.Some form of Cannabis Related Company
6.TBA in 2018 and will be HUGE
App & App Design
BSafe Mobile leads the way with their roster of apps. The safe driving app is available for both iPhone and Android users. Distraction Driving is a hot topic as more deaths are being attributed to distracted drivers than people who died from cancer. Its the “Perfect Storm of Apps” claims CEO Steve Berman. The app will notify the admin of the vehicle and in which the admin can then turn off the phone. When the car’s wheels starting rolling and the driver is using the mobile device, the admin will be notified and can chose to power off the device. This app and its technology is huge on a global level. Orders keep flowing (see recent press) and much more contracts and revenues are set to be announced over the coming weeks.
Other apps include:
◾Fleet Savers… like the BSafe app, the Fleet Savers app will allow an admin who can monitor up to 10,000 vehicles, the ability to see the location of their vehicle, the drivers patterns and more.
◾BFound Mobile… A great example is a rent a car agency. If someone picks up a car in lets say St. Louis, Missouri, and rents it for a week, the renter has no idea where that vehicle is at any given time, nor how many miles have been put on it or anything. The only thing they know per the renter’s agreement is that the car will be delivered back by such and such time. The app will allow them to know where the car is at any given time. This is perfect for agencies like Hertz, Budget, Avis, Enterprise etc. Certain apps may have the ability to do this but they works by GPS, and will not work when underground. This app works by apple beacon so even when underground the admin will still know the location of the vehicle.
◾OK Golfer… an app used by golfers to ultimately speed up the round of golf by providing distance to the flag and selecting what club the golfer should use. This will help elevate a lot of unnecessary thinking, guessing and judgement time.
◾Golf Gamble… is in the beta testing phase. The app will allow the golfer to wager money in attempt to double or triple their money based on how close they can get their ball to the pin or hole. Preliminary numbers were 90% of the time golfers will lose, making it a potentially profitable app not only for the company but for the golf courses whom they partner with.
◾Drive Sober…also in beta testing, will work by having a device on the visor. The device will pick up the alcohol levels on their breath and monitor the admin. The admin, usually the car’s owner or parent, will then have the ability to stop the driver from driving while potentially under the influence. Another app with the intention of saving lives and wrongful deaths.
◾Child Car Seat App… will work based on a sensor attached to the child’s car seat. The sensor will notify the admin when the temperature inside the vehicle reaches an unsafe level, if and when the parent leaves the child unattended. This app is an attempt to stop wrongful deaths of children due to heat exertion.
◾Urgent Dentist…will allow you to find an urgent care dentist location near you, rather than having to wait until the next day to see a dentist. This app ties along with the DENTAL CARE arm of the company mentioned below.
While the company plans on using its factories to make its devices between the hours of 9am and 9pm, it will seek additional revenues by renting the factories from 9pm to 8am. This could generate $6000 a day and have the lines running 24/7. The company would like to open factory locations across the globe at locations such as Canada, China, Budapest, Brazil, Prague, and the United States. The goal is to optimize the lines so that if they are not making product to fulfill orders, then they are being leased by someone else to generate maximum revenues.
The company wants to start off by using an office space at around 30 Urgent Care facilities over the next 24 months. The opportunity to get immediate dental care is huge. An example was given where if you have bad tooth pain or a broken tooth at 9pm at night, there is nothing you can do at the moment other than hope someone will see you when offices open at 9am. Being located in an Urgent Care facility, it will allow a person in need the option of getting immediate help by visiting of the locations. (also ties in with the app) The company will then give the Urgent Care facility a royalty and allow them to also do the medical billing. This will save the company $5000. It will be rolled out i the NY tri-state area.
He also talked about plans to make the Dental Care “mobile”, where they will bring dentistry to locations such as homes for the elderly. All the equipment including tools, chairs, machines etc. will be brought in. A dental hygienist could be rented/paid $300 for the day, and they could see on average 15 patients. If they were to bill the insurance companies $50 for the appointment, that would be $750, making it very profitable based on only having to pay $300 for the hygienist. An actual dentist may run $800 a day, but the revenues from his services would be much more than $800, thus making it a profitable venture also. This business model, multiplied by many locations in eventually many states will add up nicely. Steve wants to build many revenue streams and have the company earning money every day.
The 4th division wants to focus on “retinal scan” technology that will allow ad agencies the ability to target which ads are displayed based on recognizing its viewer. In example, if the digital ad display notices a middle aged man it will show “work boots”, while if it recognizes 3 teen girls, it may show a T-Mobile ad for cell phone service and a young woman possibly perfume. Having the ability to target your audience brings tremendous value to advertisers allowing them to get the best bang for their buck. Ads that can be quantified at stadiums, malls, theaters and gas stations are just a few immediate opportunities for the company.
Very little info was mentioned on the 5th arm of the company. It sounds as if it will be Colorado related and that due diligence has been going on with certain companies. They are going through the books of a few companies and looking for profitable ventures that they can exploit and make even more profitable.
TBA (To Be Announced) in 2018
This was an eye opener. When the CEO stated the new venture will be so big and will make so much money that everyone will be able to buy new houses… I was WOWed! I understand there are forward looking statements, but he was definitely optimistic about what he has planned for next year.
After going through the 6 legs/arms or divisions of Hexagon Holdings, Mr. Berman re-emphasized the significance of a “holdings” company and its flexibility. The beauty of having multiple holdings is that if one of the entities fails, the company doesn’t go under because there will be 5 other revenue producing holdings that keep it strong and running. The remainder of the call touched on:
◾Whats going on with Dubai?
◾Recent New Hires
◾Updates with Car Companies
◾Closing Shareholder Questions
15 Million Dubai Women To Get Their Driver’s Licenses
Exciting times are upon the women in Dubai, as January 1st, new laws will allow women the ability to drive causing a massive influx of new drivers. The company has been in discussion with 2 major firms who have reviewed the product and now wish to discuss pricing and contracts. Steve and staff will be going to Dubai for a week and already have 14 meetings set up and numerous dinners. He discussed the significant opportunity their Drive Safe App offered the companies and people of the area, especially the United Emirates. In that country, if you are caught texting on your phone, it is a $1000 fine. Your second offense, you lose both your license to drive and your car!
The company has 44 Employees
Of the 44 employees, 37 are commission based. This is a win win scenario for the company in controlling payroll expenses. The more they payout will result in more sales. Mr. Berman indicated that of the 37, some are doing fantastic and others are not doing very well, but assured shareholders that the beauty of commission based pay meant, if they do bad, then they don’t have to pay them for poor performance. The other 7, including himself, have been doing a great job and even mentioned a few by name.
◾Peter Einstein, he complimented and said he really is an Einstein, has experience working with MTV Europe and has played a key role in setting up sales and meetings with Dubai, the middle east, Ireland, England and Serbia.
◾Eric Ritter, who is in Florida, has been working with Lawyers down there
◾Bill Jenkins, ex NASCAR owner, who was highly complimented, being called, smart, bright, scientific, comprehensive and a great marketer, will generate significant future revenues for the company. Anyone familiar with a NASCAR vehicle understands the car itself is an advertisement with logo’s of sponsors all over. I have a feeling his expertise will not only help on the be safe car app, but also the digital media side
Dealing with the Auto Industry
Along with 4 auto companies, Mr. Berman discussed some of their marketing efforts.
◾Facebook… advertising is generating sales, clients and followers
◾QVC… they have a meeting on November 21st
◾Enterprise Rent A Car… can not comment as he is still under an NDA (Non Disclosure Agreement)
◾BMW… they have had good meetings. BMW has requested the app be in 7 languages. To date, 4 are done so far. As soon as the last 3 languages are complete there will be testing done. Steve was unsure just how long these tests will take. BMW has asked for minor adjustments and have been addressed.
◾FORD… likes the product and has increased their demands for what the app can do. They wish for the app to also act as a diagnostic tool, such as indicate why and when your engine light is on. Anti tampering was an issue they are addressing.
◾CHRYSLER… has a similar response as Ford.
◾GM (General Motors)… asking too much
Major News Is Coming!
Its going to be an exciting next couple of weeks, as the CEO divulged they have 10 deals in place that will bring in between $200k to $1m each over the next 2 weeks. If that wasn’t good enough, ONCI will have a signed LOI with a large insurance company that has 2 million drivers and insure 1,000 dealerships. They are expecting an order of 500+ units a month.
Additional Shareholder Questions
◾How many factories do you have? At the moment they have 2 factories producing 2-3000 units a month. One is located in NY and one in Canada.
◾Was there a share reduction? There will be a reduction, that will be revealed with the FINRA filing, that it was reduced by 1.4 billion shares from both the Authorized shares (A/S) and the Outstanding Shares (O/S). Steve mentioned it may end up going up a tad because they will be seeking the ability to raise money for future projects.
◾Who is your biggest competitor? Apple is, but with their safe driving app, it is “voluntary” versus admin based.