Winston, I do understand the patent protection and the size of the market.
The concern is the ongoing viability of the company based on the funds needed to finance growth. Just selling more shares isn't going to cut it. A "big" order needs money to produce and ONCI is "NOT" collecting the money they are due on their sales. Look at the last 2 filings for year end and Q-1. Accts Receivable were $1.5M year end and $2.2M for Q-1. Both numbers almost match up with their sales for prior year (sales were $1.6M vs. $1.5M in A/R) and sales for Q-1 were about $900K and the A/R grew $751K - almost dollar for dollar. This means that the cash flow is being killed by non collection of Sales (A/R) and most of the dollars owed might not be collectible due to age.
So if the admin side of the business was working properly, you wouldn't need to sell shares to satisfy the Delaware issue and for the most part could have collected enough money to eliminate or at minimize stock sales to deal with the toxic debt. But that would have sacrificed sales, so that was a non-starter.
Steve has done a great job on the sales side, but he is only one person and something suffers in that situation. That something is the inside running of the business and that needs to get addressed fast.
There was recent mention that in some of the recent deals, he has asked for cash in advance - this makes sense to me given the receivable and cash flow issues.
Two other notes - ONCI has to pay the commissions to the sales people on sale which means they are front ended. You don't pay them and they don't sell for you and second, auto dealers are notorious slow payers (they don't pay on time - they make you finance their operations). I know this as I have insured a number of auto dealers and on many occasions had to step in to make sure their insurance wasn't canceled for non-payment. Just how they operate.
I have invested here because the potential is absolutely amazing - Onci is like all other pinks in terms of being under capitalized - but the money is there - it just needs addressing.
The concern is the ongoing viability of the company based on the funds needed to finance growth. Just selling more shares isn't going to cut it. A "big" order needs money to produce and ONCI is "NOT" collecting the money they are due on their sales. Look at the last 2 filings for year end and Q-1. Accts Receivable were $1.5M year end and $2.2M for Q-1. Both numbers almost match up with their sales for prior year (sales were $1.6M vs. $1.5M in A/R) and sales for Q-1 were about $900K and the A/R grew $751K - almost dollar for dollar. This means that the cash flow is being killed by non collection of Sales (A/R) and most of the dollars owed might not be collectible due to age.
So if the admin side of the business was working properly, you wouldn't need to sell shares to satisfy the Delaware issue and for the most part could have collected enough money to eliminate or at minimize stock sales to deal with the toxic debt. But that would have sacrificed sales, so that was a non-starter.
Steve has done a great job on the sales side, but he is only one person and something suffers in that situation. That something is the inside running of the business and that needs to get addressed fast.
There was recent mention that in some of the recent deals, he has asked for cash in advance - this makes sense to me given the receivable and cash flow issues.
Two other notes - ONCI has to pay the commissions to the sales people on sale which means they are front ended. You don't pay them and they don't sell for you and second, auto dealers are notorious slow payers (they don't pay on time - they make you finance their operations). I know this as I have insured a number of auto dealers and on many occasions had to step in to make sure their insurance wasn't canceled for non-payment. Just how they operate.
I have invested here because the potential is absolutely amazing - Onci is like all other pinks in terms of being under capitalized - but the money is there - it just needs addressing.
