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Total Telcom Inc. Due Diligence Report
Symbols: TTZ(Canada) & TTLTF(USA)
Price: $0.12 CDN & $0.086 USD
Common Shares: 24,965,014 - Almost 25 million even
Insider Holdings: 6,586,614 or 26.4%
Options: 1,430,000 total. Breakdown below:
(a) 250,000 common shares at $0.10 per share - options expire February 18, 2021.
(b) 100,000 common shares at $0.10 per share – options expire May 31, 2021.
(c) 830,000 common shares at $0.10 per share – options expire November 30, 2021
(d) 250,000 common shares at $0.20 per share - options expire April 30, 2023
Over the last 17 quarters, Total Telcom has added over $1.5 million in net income or 5.64 cents per share and the balance sheet is clean, yet it trades at a 4 year low.
New research report by Grey Swan about Total Telcom (made prior to Q1 2021 results): https://grey-swan.com/2020/11/13/total-telcom-inc-update-at-fiscal-year-end-2020/
Q1 2020 Management Discussion Highlights
The Company, through its wholly owned subsidiary ROM Communications Inc. (ROM) is a leading developer and provider of remote asset monitoring and tracking products and services throughout North America. ROM specializes in the development of innovative wireless communications that provide low cost, high tech monitoring, tracking and remote control solutions for commercial, industrial and consumer applications. ROM is uniquely positioned and qualified to deliver complete web to wireless solutions that enable companies and organizations to remotely monitor,
track and control their fixed and mobile assets with a web browser from any Internet enabled PC. Products and services are based on ROM’s web to wireless technology and proprietary 2nd generation hardware & software marketed as TextAnywhere, ROM Heater Controllers, ROMTraX, MotoTraX, TraX, DataTrax and Alarm Point. These
modules are wireless modems that utilize microcomputers integrated with sensors, GPS engines and various inputs and outputs (I/Os) and interfaced by the user through the Internet. ROM is an authorized airtime reseller and hardware developer for satellite, cellular and wireless IP Networks.
Revenues for the first quarter of 2020 increased by approximately $67,000 compared to 2019. This increase was a result of the Company continuing to see increasing sales from new product developments that have been completed over the past couple years. In addition, there was increased rental revenue as there was more tracking units rented out in the off road race in first quarter of 2020. In particular, the Company saw an increase in rental revenue with the addition of motorbike tracking to the off road racing monitoring done in 2019. In addition, the Company saw an increase in hardware sales in its environmental monitoring sectors and in the heater controller market.
The Company’s net income for the first quarter of 2020 is consistent with 2019. Income from operations increased by approximately $28,000 from the increased sales, but the Company realized a foreign exchange loss on the funds held in US dollars that offset this increase resulting in net income being consistent with the first quarter of 2019.
Net cash inflows for the quarter ended September 30, 2020 were $43,210. This was primarily a result of the Company generating positive cash flow from operations while still investing resources to complete product development projects where specific customer application opportunities have been identified.
Working capital at September 30, 2020 increased by approximately $44,000 compared to the working capital at June 30, 2020 which is consistent with the increase in cash flow discussed above.
Total assets have increased by approximately $59,000 as the Company continuing to invest in new Product Developments. Total liabilities decreased by approximately $48,000 as the Company pays down the lease liability and has less trade payables due to the timing of inventory purchases compared to last year.
Outlook
In fiscal 2019 and 2020, the Company focused on the development of new product initiatives identified for customer specific applications. Management hopes to capitalize on global opportunities that have been identified for the following new products that have just recently completed development and are now ready to begin commercial
deployment. These products include the following:
1) TextAnywhere II which management will market to the aviation industry and expand its environmental monitoring into additional applications such as air quality measurement.
2) DataTraX which allows for large message data processing which management will market to the forestry industry
3) Remote Motor Controllers which allows for monitoring and control of motors and pumps for a number of potential market applications.
4) SiteTraX which allows for tracking and monitoring in various industrial and remote settings.
In the first quarter the Company saw continued growth in market acceptance of the DataTraX product with new sales occurring in the forestry industry. The Company also saw increased customer interest in the Remote Motor Controller and SiteTraX prototypes that have been developed and management hopes to start commercial deployment of these products by the third quarter of fiscal 2021. The Company is also starting to develop relationships with industry partners to begin marketing the TextAnywhere product into the private aviation industry
Management expects to continue to open new markets, as the Company is able to develop customer specific applications that tie into the platform of the Company’s core products. The challenge the Company faces is to effectively market these products. The Company will invest significant resources in continued customer specific product developments and implementing its marketing strategy. Management anticipates it will continue to invest similar amounts on Product development costs in the foreseeable future and believes it has the resources necessary to complete the full commercial deployment of its new product initiatives.
Symbols: TTZ(Canada) & TTLTF(USA)
Price: $0.12 CDN & $0.086 USD
Common Shares: 24,965,014 - Almost 25 million even
Insider Holdings: 6,586,614 or 26.4%
Options: 1,430,000 total. Breakdown below:
(a) 250,000 common shares at $0.10 per share - options expire February 18, 2021.
(b) 100,000 common shares at $0.10 per share – options expire May 31, 2021.
(c) 830,000 common shares at $0.10 per share – options expire November 30, 2021
(d) 250,000 common shares at $0.20 per share - options expire April 30, 2023
Over the last 17 quarters, Total Telcom has added over $1.5 million in net income or 5.64 cents per share and the balance sheet is clean, yet it trades at a 4 year low.
| Year | Revenue | Profit/(-Loss) | Assets | Liabilities | Earnings Per Share |
| 2017 | $1,741,556 | $300,227 | $1,730,249 | $151,959 | 0.012 |
| 2018 | $1,781,474 | $476,028 | $2,315,379 | $193,561 | 0.019 |
| 2019 | $1,438,390 | $301,615 | $2,622,889 | $199,456 | 0.012 |
| 2020 | $1,506,798 | $321,438 | $3,256,331 | $511,460 | 0.013 |
| 2021(Q1) | $487,217 | $107,530 | $3,315,408 | $463,007 | 0.004 |
New research report by Grey Swan about Total Telcom (made prior to Q1 2021 results): https://grey-swan.com/2020/11/13/total-telcom-inc-update-at-fiscal-year-end-2020/
Q1 2020 Management Discussion Highlights
The Company, through its wholly owned subsidiary ROM Communications Inc. (ROM) is a leading developer and provider of remote asset monitoring and tracking products and services throughout North America. ROM specializes in the development of innovative wireless communications that provide low cost, high tech monitoring, tracking and remote control solutions for commercial, industrial and consumer applications. ROM is uniquely positioned and qualified to deliver complete web to wireless solutions that enable companies and organizations to remotely monitor,
track and control their fixed and mobile assets with a web browser from any Internet enabled PC. Products and services are based on ROM’s web to wireless technology and proprietary 2nd generation hardware & software marketed as TextAnywhere, ROM Heater Controllers, ROMTraX, MotoTraX, TraX, DataTrax and Alarm Point. These
modules are wireless modems that utilize microcomputers integrated with sensors, GPS engines and various inputs and outputs (I/Os) and interfaced by the user through the Internet. ROM is an authorized airtime reseller and hardware developer for satellite, cellular and wireless IP Networks.
Revenues for the first quarter of 2020 increased by approximately $67,000 compared to 2019. This increase was a result of the Company continuing to see increasing sales from new product developments that have been completed over the past couple years. In addition, there was increased rental revenue as there was more tracking units rented out in the off road race in first quarter of 2020. In particular, the Company saw an increase in rental revenue with the addition of motorbike tracking to the off road racing monitoring done in 2019. In addition, the Company saw an increase in hardware sales in its environmental monitoring sectors and in the heater controller market.
The Company’s net income for the first quarter of 2020 is consistent with 2019. Income from operations increased by approximately $28,000 from the increased sales, but the Company realized a foreign exchange loss on the funds held in US dollars that offset this increase resulting in net income being consistent with the first quarter of 2019.
Net cash inflows for the quarter ended September 30, 2020 were $43,210. This was primarily a result of the Company generating positive cash flow from operations while still investing resources to complete product development projects where specific customer application opportunities have been identified.
Working capital at September 30, 2020 increased by approximately $44,000 compared to the working capital at June 30, 2020 which is consistent with the increase in cash flow discussed above.
Total assets have increased by approximately $59,000 as the Company continuing to invest in new Product Developments. Total liabilities decreased by approximately $48,000 as the Company pays down the lease liability and has less trade payables due to the timing of inventory purchases compared to last year.
Outlook
In fiscal 2019 and 2020, the Company focused on the development of new product initiatives identified for customer specific applications. Management hopes to capitalize on global opportunities that have been identified for the following new products that have just recently completed development and are now ready to begin commercial
deployment. These products include the following:
1) TextAnywhere II which management will market to the aviation industry and expand its environmental monitoring into additional applications such as air quality measurement.
2) DataTraX which allows for large message data processing which management will market to the forestry industry
3) Remote Motor Controllers which allows for monitoring and control of motors and pumps for a number of potential market applications.
4) SiteTraX which allows for tracking and monitoring in various industrial and remote settings.
In the first quarter the Company saw continued growth in market acceptance of the DataTraX product with new sales occurring in the forestry industry. The Company also saw increased customer interest in the Remote Motor Controller and SiteTraX prototypes that have been developed and management hopes to start commercial deployment of these products by the third quarter of fiscal 2021. The Company is also starting to develop relationships with industry partners to begin marketing the TextAnywhere product into the private aviation industry
Management expects to continue to open new markets, as the Company is able to develop customer specific applications that tie into the platform of the Company’s core products. The challenge the Company faces is to effectively market these products. The Company will invest significant resources in continued customer specific product developments and implementing its marketing strategy. Management anticipates it will continue to invest similar amounts on Product development costs in the foreseeable future and believes it has the resources necessary to complete the full commercial deployment of its new product initiatives.
