On4 Communications Inc (OTCMKTS:ONCI) Making A Comeback

Do you remember On4 Communications Inc (OTCMKTS:ONCI), which got crushed in 2016? On June 29, 2016, we put out a report explaining the decline in the share price. Additionally, we said that the market was expecting that the CEO, Steve Berman, could turn around the share price.

"Shares were climbing up the charts last month, only to get slammed back down this month. Right now, everyone is betting on CEO Steve Berman to deliver and turn things around. Judging from his track record at Time Warner New York, we won’t count him out." Source

We thought that it was time to review the most recent developments of the company. We found out that the company had been working on its transparency. It hired a law firm that is helping the company with OTC Markets rules. We believe that the steps are being appreciated by the market. Thus, we will provide information and analysis in this piece.Is the stock turning around? Before we give you the new information, make your own opinion by checking the following stock chart.SourceBusiness - It is all about the new CEOSource: Security Exchange CommissionLet's review a little the background of the ONCI. The Company was founded on June 4, 2001 in Delaware. Its business has gone through several mergers and transactions that we want to note.

• On March 12,2009, Sound Revolution Inc merged with On4 Communications, Inc. The company had, at that time, three subsidiaries: Charity Tunes Inc., Sound Revolution Recordings Inc., and PetsMobility Inc. The business objectives of these companies were very different.
• The companies were sold some years later. On April 29, 2010, PetsMobility interest was successfully sold. On March 16, 2011, Charity Tunes and Sound Revolution were sold to Empire Success, LLC.
• On March 9,2016, Mr. Steve Berman was appointed Chief Executive Officer, and Director of the Company. In the company documents, it is noted that the new CEO began to aggressively pursue other business opportunities to produce a profitable business model going forward. In our previous article, we claimed that he would do so . We were not wrong about it.
• On November 4,2016, the company signed its intention to acquire "Family Mobil Safety Marketing, the distributor of a safe driving App."
• On December 9,2016, ONCI signed a joint venture agreement to run Digital Media Management & Consulting; a fast-rising digital signage privately-held company.

Hence, the business strategy of ONCI is the acquisition of companies. Their election is made by the company's CEO, who is an experienced business man. The following is information that we could read about him on Investors Hub, where many people discuss the stock.

"Steve is a New York native with over 30 years of sales success and executive leadership experience. In his various roles managing and building various businesses, Steve has been instrumental in securing capital financings for several public and private companies, including start-ups and pre-revenue businesses. Most recently, Steve co-founded 3DMC, a premier digital multimedia company; and also served as CEO of Stealth Sports and Marketing, a consulting firm specializing in marketing and multimedia solutions to professional sports teams. Prior to working with 3DMC and Stealth, Steve held the positions of Senior Vice President at YES Network, the number one regional sports network in the country. Before his tenure at YES Network, Steve served as Senior Vice President of Time Warner Cable NY, where he successfully grew the company’s advertising sales from $11m to well over $100m and increased national sales by 200%. " Source

Recent DevelopmentsOn June 19, 2017, The Bunker Law Group, PLLC, the law firm helping the company, put out a letter noting that the company is in compliance with OTC Markets regulations. If you are busy to read legal terms, do not worry. This is what the market wanted to know:

"In our opinion, the Annual Report constitutes adequate current information that is publicly available within the meaning of Rule 144(c)(2) under the Securities Act of 1933 as a result of such Annual Report being posted on the OTC Disclosure and News Service on December 20, 2016, and that the Annual Report includes all of the information that a broker dealer would be required to obtain from the Company to publish a quotation for all of the Securities of the Company under Rule 15c2-11 under the Securities and Exchange Act of 1934" Source

Additionally, the most recent information released were the annual report and the quarterly earnings. The market got no press release from the company, rather only the financial figures were put out. Have a look at them and check the growing revenues and the fact that the net income in the last quarter was positive for the first time. As we said, things are getting better with the new CEO in place.

Revenue4/30/20171/31/201710/31/20167/31/2016Total Revenue307.7555.5--Cost of Revenue7585--Gross Profit232.75-29.5--Operating ExpensesResearch Development----Selling General and Administrative213.47100.43850.68236.695Non Recurring1.517.517.517.5Others----Total Operating Expenses----Operating Income or Loss17.78-140.92-50.68-236.695Income from Continuing OperationsTotal Other Income/Expenses Net-6.5186.5186.518Earnings Before Interest and Taxes2.417-140.92-50.68-197.543Interest Expense-18.81518.81520.89557.045Income Before Tax21.232-159.735-71.575-254.588Income Tax Expense----Minority Interest----Net Income From Continuing Ops21.232-159.735-71.575-254.588Non-recurring EventsDiscontinued Operations----Extraordinary Items----Effect Of Accounting Changes----Other Items----Net IncomeNet Income21.232-159.735-71.575-254.588Preferred Stock And Other Adjustments----Net Income Applicable To Common Shares21.232-159.735-71.575-254.588

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ConclusionIn our previous report, we recommended to stay alert on this name as the CEO change was a game changer for UHLN. We were correct. The acquisition made in 2016 and the joint venture signed are paying off now. The revenues went up in the last quarterly release and the net income was for the first time positive. Additionally, the company has been working on its transparency. A law firm was hired to certify that the company is in full compliance with the market regulations. In conclusion, we believe that the worst is behind the company and the turnaround will continue.We will be updating our subscribers as soon as we know more. For the latest updates on ONCI, sign up below!Image courtesy of FlickrDisclosure: We have no position in ONCI and have not been compensated for this article.