On4 Communications Inc (OTCMKTS:ONCI) On A Tremendous Bull Run

We need to talk again about On4 Communications Inc. (OTCMKTS:ONCI), because the share price has not stopped rising. We said following about the new 10-Q, which was expected to be released on September 15, 2017:

"The company will be releasing the second quarter financials by September 15, 2017. We expect a big improvement once the numbers hit the tape. In our opinion, the market seems to be pushing up the share price because of the future revenues that could come out from the agreements with big companies." Source

Now, have a look at what happened on September 15, 2017 when the company announced a 73.6% increase in second quarter revenue. 1 month chart for ONCIThat's not all.After our last article was published, we received large amount of new good news including a $1 million contract with a New Jersey dealer, and a new joint venture agreement among other announcements.Recent DevelopmentsLet's provide the business model of ONCI for those who have gotten to know the company here. ONCI acquires new technologies and promising business models. The most significant to point out was that the company was having business meetings with large business conglomerates, such as ENTERPRISE RENT A CAR, General Motors, and Google Brazil. Deals with those companies were expected to create large share price jumps.What's new?Let's now move to the new announcements.On September 13, 2017, the company released a new contract with a Pennsylvania/New Jersey dealer group. The other party works with different brands, such as Jeep, Kia, Chevy, Ford, Alpha Romeo, GM, Hyundai, and Nissan. We appreciated the terms of the new agreement; 20 units per month at $200 per unit, which is $80,000 per month and $1 million per year. Let us remark to help those who are calculating the next quarterly release financial numbers; the units will be delivered on October 20, 2017.On top of it, in the same press release, the company noted a JV agreement with Title King, a division of New America Energy Corp (OTCMKTS:NECA). The agreement was explained with the following terms:

"By using our current ad platform on Google, Facebook and other social media we can deliver leads to title companies. This App is free and makes money by delivering leads to title companies. On 4 will receive 50% of the leads it generates or $12.50 per lead." Source

The following day, in another press release, we could read a little more about this deal with New America Energy Corp. including the name of the app, BestTitleDeal (BTD) app, and its new features. BTD is a new tool enabling the consumers to find out how much their car is worth and how much they can borrow for it.On September 15, 2017, the expected quarterly release was received by the market. The most astonishing remark was the 73.6% increase in revenue over second quarter. Additionally, the net income was noted to rise over $300,000. Regarding business operations, the company provided some insight about the meeting with BMW.

"Today's meeting with BMW was amazing, and they have asked us to make some design changes to our basic unit to fit the new European diagnostics. After we make the changes we will meet in another 60 days to discuss how to implement our product into BMW vehicles similar to the way we are working with Chrysler Corp today." Source

The company noted that the team successfully signed a Letter of Intent to acquire 15,000 sq. ft. factory in Budapest, Hungary, to cope with the company's European contracts. Finally, it was noted that the company expects to reduce its shares in 3 stages:

"Share reduction will come in 3 stages; I will be reducing more shares than previously announced. The first stage begins next week and involves a reduction of preferred shares." Source

On September 20, 2017, the company noted an increase in the sales force; from 4 to 20 (100 % commission based). The announcement is very significant, as it shows that the company is growing and the salesmen want to promote ONCI. Additionally, FLY Communications Inc. will handle advertising. Finally, ONCI also hired Eric Ritter, with expertise in the Auto Dealer Network, property casualty, and F&I insurance industry, to be the new SVP sales.Furthermore, on September 22, 2017, the market got to know that three new applications in the Auto Insurance and Auto Safety Industry were going to be developed with New America Energy Corp.That's not all, because another agreement with a 250 dealer Extended Warranty company was released on the same day. Most importantly, the company noted that it was retiring 30 million preferred shares. This announcement obviously made the share price increase.ConclusionCurrently trading with a market cap of $66 million, ONCI is an exciting story among small caps. With very little cash and a lot of liabilities reported on the balance sheet, the market seems to be focusing more on the news and revenue growth. If the strong new flow continues, look for the ONCI bull run to continue.Be sure to check out our coverage on ONCI!We will be updating our subscribers as soon as we know more. For the latest updates on ONCI, sign up below!Image courtesy of Bas Automotive Photographers via FlickrDisclosure: We have no position in ONCI and have not been compensated for this article.