We have a unique and only respiratory app capable of determining a wide range of respirator conditions over the an apple or android phone, its a patented product in the very high demand high growth Telehealth Industry ...we have a great product
However it now pains me to say it, however I have little faith in the independence of the board and management.
The Board
> There is not enough independence and questioning ...they are IMHO representing management rather than their primary role of representing shareholder interests. This is evidenced with your example on the hardware of what I would agree is a very poor decision (major investment in hardware and dilution without a customer ready to order the hardware).
> Allowing nepotism in award of contract IMHO the details of the award of this contract stink of nepotism and should now be reviewed by the BOD with a view to action against the CEO
> Over rewarding of the Management and the Board themselves....perhaps because of the award of the board members own share awards they are IMHO massively over generous on the award of options to management for simply minimum achievement. However see below management cannot even make the minimum option award goals. With a unique product the RAP DX the progress by the company has been underwhelming at best.
The fact that they cannot put out forward guidance or a forecast of any sort on future revenues tells me they are not goal driven and is totally unacceptable.
The Management Team.
They seem very good an blowing up wonderful "potential" deals especially at option renewal time ...however they just seem to slide away without ever reaching fruition.
- Lockheed Martin - Darpa program ..what has happened to that ? A major US corporations with deep pockets wants out tech (only available from RAP) for a US government program ...what was the deal ? where are the progress reports ? how were we going to make revenue on this deal. ?
- The first US regulatory testing that could not be used because of too much background noise ...was a basic rookie mistake...why did they not run the first 10 -20 -30 patient test data through the RAP DX software and doctors to ensure it was what was required.
- I suspect the recent decline by the US FDA may also have been partly due to lack of RAP regular follow up with Experian. Experian had a 99% approval rate of managing FDA approval for clients ...did we have regular weekly meetings with Experian and possibly the assigned FDA application officer to ensure all outstanding issues were closed as they came up ???
- Sanofi ...what really happened ...still no real reasons given for it not happening
- The German Hospital Program ...no update in the quarterly report ..,when questions delayed because of Covid -19
- Big talk up in previous presentations on the potential of China/ Asia (massive markets not dependent on FDA) ...we get the recent Quarterly report and not one sentence on China / Asia. We have finally name a board member and Sales Director for UK / Europe, if they want to make progress they need to get a seasoned and experience RAP Telehealth head in Singapore to cover ASEAN and probably one in Japan. (I agree China and possibly even Korea are experts at stealing or replicating intellectual property so a certain level of caution is needed in these markets ...just look at Tesla recent Chinese competitor)
> The Board IMHO needs to change the CEO. I am sure Tony is a nice guy, its not personal, however IMHO he does not the private sector management and business competencies, drive and experience to take RAP to the next level. IMHO he needs to be replaced and not by Brian. We to replace them with a very seasoned CEO that has successfully managed a company in this space from this stage of development through to a major revenue earning company ready for sale.
They are treating ordinary shareholders like 'mushrooms' keeping us in the dark and feeding us ----. I cannot believe the likes of Fidelity are happy with this level of performance
I will certainly not support any renewal of options and will push for change of CEO and if they don't I will push for a new Chairman of the Board.
I am still invested as much as ever in RAP as I am not a trader and will remain so as I think it is still undervalued and I am sure Coviu will be implemented and eventually deliver some revenues which will rerate the stock and if not our software and intellectual property is work well North of the current share price. I just don't think the current CEO will anywhere near optimize the value of the company and that is what we as shareholders should be demanding.
Sorry this is a difficult post to write and realize this will not win many plaudits. GLTA Thai
RAP Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
