It's hard to understand what you don't understand.
Originally Posted by LandLord
It's hard to understand what you don't understand.
Eyelogic Stock price 52 wk high was $2.15 04/21/2010; fell another $0.08 to $0.40 today.
http://investing.businessweek.com/re...icker=EYE/A:CN
And its still an expensive stock at that price. THe only thing keeping it from really plummeting is that the volume in so low, only a few thousand dollars worth trades hands each day.
That's because I do understand. I just don't agree. Now do you understand?
Sent from my BlackBerry® wireless device
Eyelogic Had a Tough Year
Wednesday, Dec 15, 2010
Eyelogic CEO Rick Skauge says that the company has had to deal with a number of difficult events since the start of the year. Problems at Great Glasses in Ontario, one of Eyelogic’s biggest clients, meant Eyelogic lost $24,000 per month in equipment rental income. The company is also involved in three legal cases, as a shareholder in other businesses.
Eyelogic reports that its third-quarter revenues were $1.02 million, compared to $1.15 million for the same period last year. The Calgary-based company is no longer making a profit, posting losses of $77,980. As a result of its losses, its line of credit has been cancelled, though it still has $500,000 in reserves.
Eyelogic tried installing an eye test device in opticians’ offices and providing them with an optometrist for a few hours. When this business model failed, Eyelogic tried another approach, opening eye testing centres that do not sell glasses or contact lenses. Eyelogic is counting on the idea that opticians won’t hesitate to refer their clients to these centres, because they won’t be afraid of losing business, as they are if they refer their clients to an optometrist. This model is currently under evaluation. If it fails, the company may have to consider downsizing in Eastern Canada.
Sounds grim to me...their biggest crucial mistake was being so largely aligned with GG. In receiving that GG $24K per month contract revenue, they certainly stepped over the quarter to pick up the nickel and cut off 99% of further growth in the Canadian market.
Put a fork in it...
Interesting they are switching gears from eyecare to converting digital photos onto canvas (?). Would not want to be stuck with any of their shares.
From 2010 Eyelogic Annual Report:
Eyelogic experienced a challenging and frustrating year. Our Eyelogic System
business performed well especially in the 3rd and 4th quarters. We installed
many new locations on both a rental and sales basis. Our eye exam business
in Ontario on the other hand was disappointing which is why on February 28th
of this year we closed all 7 eye exam locations in Ontario.
The decision came after 16 months of working with sites to increase revenues
and grow the number of exams per location. We invested considerable dollars,
time, and sweat to help opticians attract, maintain, and grow their patient
bases. Despite working closely with customers and providing direct marketing
support, the sites were unable to book enough patients to make the business
viable. There was no predictable growth and we continued to record operating
losses each month. We are convinced that if we continued with eye exams we
would have eventually put the Company in financially jeopardy. Cutting the
eye exam business has allowed us to become financially stable once again.
On May 1, 2010 new regulations came into effect for BC Opticians. The new
regulations allow opticians to independently test eyes and dispense their
own results. We were very excited about the news and believed more opticians
would begin using our System. As a result we have increased our installation
base in BC although installations have been slower than expected. In
preparation of the changes we worked quickly to update prospect call lists,
marketing materials, and generate new sales letters. Then we went out and
sold. After 12 months, opticians have not rushed to install automated
refraction systems. We know that many independent optical stores are hanging
on just to survive. We also know we are not losing business to competitors.
With fewer retail customers coming through their doors, our prospective
customers are unwilling to bring on additional expense at this time. As
economic conditions improve we expect to see our BC installations increase.
In July, a large customer (Great Glasses no doubt) lost its¹ legal fight, was forced into
receivership, and a court appointed receiver de-installed our Systems. We
have since recovered our assets. As a result our rental revenue decreased by
about $22,000 per month and we now have a healthy number of Systems ready to
ship to new customers with little to no capital cost.
On November 18, 2010 after 27 consecutive quarters, we announced the
suspension of our quarterly dividend. The cash dividend was no longer
sustainable given our lack of profitability and our uncertain near term
growth given current market conditions. As expected, our stock price has
fallen sharply since the announcement.
Since our decision to stop the eye exam business in Ontario, we have trimmed
further costs at head office. Our cost cuts are expected to save over
$30,000 in expenses per month without affecting our current operations.
Revenues remained steady at $1.38 million over last year. Direct expenses
increased to $362,750 from $215,189 in 2009 of which $106,922 (73%) is
attributed to Doctor Fees paid to support eye exam sites in Ontario. General
and Administrative expenses increased to $1,089,517 compared to $958,556 in
2009. The increase is due to employee and related costs to support the eye
exam business in Ontario. Our Net Loss was $42,590 compared to Net Earnings
of $68,407 last year.
An investor recently asked me ³What¹s the good news?² Good news is we are
still a viable company. We continue to install new customers and serve
hundreds of existing customers across Canada and hundreds of other customers
internationally. We have no debt. We have healthy cash reserves. We have
repeater rental income. And we have dedicated and capable staff.
Since cutting eye exams, we have recovered financially and expect to
continue our long record of profitability. We are bullish about our future
and we look forward to once again building shareholder value.
From Eyelogic's March 31, 2011 Management Discussion and Analysis
The Company recorded a comprehensive loss of $42,224 during the first
quarter of 2011. This loss is attributable to losses incurred in closing our
Ontario eye exam centre. Eyelogic has reduced its number of employees as a
result of this closing. The Company will now focus on its traditional
business of supporting Opticians through the sale and rental of our eye
testing system.
Since the closing of the eye exam centre, reducing overhead costs and
stopping the dividend, the Company is now in a strong position to move
forward. We have over $500,000 of cash and sufficient rental and investment
income to meet our current expenses.
The current economic conditions seem to be affecting the optical market, and
as a result, the Company has been using this time as an opportunity to look
at other ways to grow the Company.
Our first step in a new direction will involve the Company in a business
that will build on our history of providing quality products on a rental or
finance basis. Eyelogic will, through a subsidiary, start to produce and
market custom canvas prints from customer provided digital photographs. The
details of how this business will develop will be announced at a later date.
Interesting..............................
Tres...
Shwing
[QUOTE=NorthStar;393906]as a result, the Company has been using this time as an opportunity to look
at other ways to grow the Company.
Our first step in a new direction will involve the Company in a business
that will build on our history of providing quality products on a rental or
finance basis. Eyelogic will, through a subsidiary, start to produce and
[I]market custom canvas prints from customer provided digital photographs. /QUOTE]
And this ladies and gentlemen is the sign of a company that doesn't have any direction or hope of future growth prospects; ready to die a slow death. If there technology was so great they should have focused on a bigger market than shady opticals: optometrists and ophthalmologist looking to delegate. Instead they alienated and ****** off their biggest potential customer base.
Look at the outstanding lawsuits and claims.
Consider what the judges said about Great Glasses being a sham operator.
Consider that B.C. has very few opticians who are licensed to perform refractions .
Consider that B.C. is deregulated and anyone can dispense eyewear or sell contact lenses .
Consider that any customer agreeing to this type of sight test is cheating themselves of their own eye health and only receiving 1/2 of what they need.
Consider that the only reason to have a sight test of this nature is personal financial greed to the tester and that there is no real benefit to the consumer.
Consider that the backers of refraction have a vested interest .
This could be the best equipment ever made but the shady back door against the law approach that all parties promoted was wrong .
What was wrong with doing a legal front door application for a "Change of Scope of Practise" .
Why did they refuse to approach this matter in the obvious legal way instead of supporting and promoting a bad model and wrong model and having it backfire ?
Maybe the Association and Registrars would like to step up to the plate here and answer this .
Stock price now at $0.185 - I can hear the swirl...
I love my Eyelogic system!
I always wanted one to take on trips to the Third World. It would be better than the autorefractors that we used.
Another chance for Eyelogic? Despite a low stock price of $0.33 with a 52 wk low of $0.08. This company, 20/20 Vision Center, plans to put them in pharmacies and provide a vision testing center for the internet market. How about a kiosk in the mall? Certainly cuts out the eye doctor but facilitates the internet purchase, thus, circumventing even the optician in the B&M stores. It seems they plan to have non-ECP personel providing the refraction as a stand alone procedure.
Press release from CNW Group
Eyelogic signs Agreement with 20/20 Vision Center, LLC for USA distribution rights
Tuesday, September 04, 2012
CALGARY, Sept. 4, 2012 /CNW/ - Eyelogic Systems Inc. is pleased to announce an agreement with 20/20 Vision Center, LLC for exclusive distribution rights in the United States for remotely operated units. 20/20 is aggressively pursuing an online eye testing application where technicians and doctors from a centralized call center will perform eye testing on patients across the United States . The 10 year agreement, with a one-time renewal option, calls for a minimum purchase of 940 units over the initial term, with at least 20 units purchased during the first year.
Mark McDonald, President of Eyelogic, says "We are very excited to be working directly with 20/20 to bring online testing to millions of Americans. Online testing is an exciting development which has the potential to change the industry. We are very pleased 20/20 choose our world leading technology as a core component."
Dr. Richard Ombres, 20/20's Medical Director, estimates over 200 million of the U.S. population have refractive errors that are correctable with prescription glasses or contact lenses. "The critical first part of the eye exam, so often overlooked, is an accurate refraction," says Dr. Ombres, "Eyelogic's proven refractive algorithm, which is completed through objective and subjective refraction, is failsafe and highly accurate. It consistently gives us the best visual acuities obtainable with an optimum new optical prescription for eyeglasses and contact lenses."
Dr. Ombres went on to say, "This technology is a breakthrough for the millions of patients who want quick access to simple and accurate refractions in between their regular eye health visits [or forgo the eye exam and its fee altogether]. However, refraction is only a part of a complete eye exam and these tests do not replace regular eye health exams performed by a qualified Optometrist or Ophthalmologist." McDonald agrees, "Since our inception, we've consistently educated patients about refraction only testing. Ensuring every patient knows the difference between refraction and an eye health exam allows them make an informed decision about their individual needs."
20/20's Communication Director, Dr. Joseph Seriani O.D., said 20/20 is currently implementing licensing agreements with optical dispensaries, primary care physicians and pharmacies to make refractions more accessible, convenient, affordable and accurate [for the online retailers]. "There is a very large market for online testing. With our system, the eye doctor is always in. Morning, afternoon or evening, seven days a week. No appointment necessary," touts Dr. Seriani.
The first installations are scheduled for completion in November of this year.
(bold and [comment] added)
Last edited by NorthStar; 09-24-2012 at 11:08 AM. Reason: add bold
Last month, Eyelogic's Eye Exam Centre on Avenue Rd. Toronto closed. No surprise, doing eye exams only. Their website is still up: theeyeexamcentre.com (drop the "the" and you get Hakim's eye doctor network across Canada, although there is no mention of the Hakim store associated with it).
Eyelogic stock price currently at $0.12.
From an article in Maclean's magazine http://www2.macleans.ca/2012/12/02/n...-billion-lost/ about the wild west in investing in Alberta. Perhaps Eyelogic's business is not refracting equipment at all.
Among the practices that went on under the watch of the Alberta regulator was an unusual arrangement that allowed a company called Eyelogic Systems, whose core business was renting equipment to eye doctors, to become a controlling shareholder in at least a dozen of the now-troubled real-estate ventures. Eyelogic was started by a Calgary doctor who had developed computer software that could replace traditional eye exams. But aside from renting ophthalmology equipment, the company also invested in hundreds of real estate ventures in Alberta in an arrangement that allowed many of the firms to market their investments as RRSP-eligible.
Under Canadian tax laws, investors can’t use registered funds to invest in most real estate developments unless they are public companies, or have a majority shareholder that is a public company. Eyelogic, which is listed on the TSX Venture exchange, paid an average of just $600 to buy a 60 per cent share in each real estate investment corporation. That allowed developers to offer their investments as retirement savings vehicles, opening the door to potentially millions of dollars in RRSP money that would otherwise be out of reach to developers.
In return, the company earned a percentage of all the RRSP money invested as a “management fee,” although it stated in offerings that it had little involvement in managing any of the firms that it controlled. At its height, in 2008, Eyelogic paid a total of $98,311 for a controlling interest in 171 private real estate companies in return for $660,000 in management fees.
While Eyelogic was backing investments and collecting management fees, a sister company, Olympia Trust, handled the RRSP accounts investors used to direct their retirement money into the real estate developments, charging investors an annual fee for its services. In an interview, Rick Skauge, CEO of both Olympia and Eyelogic, says he originally developed the arrangement as a way to help raise money for his own real estate project, called Bearspaw Tree Farm. It made sense to expand it to other investments, he says, giving small businesses access to needed cash and small investors better return on their money.
“It was just a way to facilitate businesspeople raising money,” he says. “It certainly wasn’t a licence to rob people of their wealth.” Skauge says he, too, was taken in by many of the now-failed developers, some of whom had a history of successful developments. “You’re assuming you can tell the good guys from the bad guys and you can’t,” he says. “I’ve been in this business a long time and I can’t tell the difference between the crooks and the good guys face-to-face.”
In some cases, he says, Eyelogic was able to remove bad managers from troubled companies. In other cases, he says, company management simply ignored Eyelogic’s requests. Eyelogic took Shire, the banned Calgary company, to court to force a management overhaul, but it went into receivership before the case was over.
Investors, meanwhile, have launched as many as six different lawsuits against Eyelogic over allegations it failed to properly act as a controlling shareholder. None of the lawsuits have been successful, Skauge says. Investors may be looking for someone to blame, he adds, but they all signed disclosure statements that set out Eyelogic’s involvement in the deal, and agreements indemnifying Olympia Trust. “We weren’t the investors’ partners. Eyelogic made a small fee for that and we’ve been dragged into court enough times that we’ve paid significant legal bills,” he says. “But we probably had 260 companies that were controlled subsidiaries. Do you think for a minute we didn’t think some of them would go bad? They had to.”
But investors say the structure allowed potentially thousands of unsophisticated investors to pour their RRSPs into risky real-estate deals they didn’t understand. Myron Achtman and his twin brother, Malcolm, lost money in two different real estate developments that listed Eyelogic as a controlling shareholder in order to make them RRSP-eligible. They are now leading investor groups fighting to recoup their losses. “Some investors put in everything they owned,” Myron says. “Some of these people lost their homes.”
While investors can sue to try to recoup their money, the process is time-consuming and expensive, and courts have little ability to force regulatory change. “It’s not like the courts will be able to do anything about this,” says Kevin McGuigan, the Calgary lawyer leading the $160-million lawsuit against Platinum Equities. “The question that does come up then is regulation—who should be regulating this, and how should it be scrutinized in order to protect the public interest?”
Alberta Securities Commission chair and executive officer Bill Rice says the regulator investigates all allegations of fraud and misconduct and takes action when necessary. But not every investment that goes bust is illegal, he says. “It’s not our mandate to sanction people for incompetence,” he says. “We are simply not in a position to go and sanction people because investors make strong allegations concerning their conduct.”
Ultimately, he says, it’s up to the investor to decide whether a deal that sounds too good to be true is worth the risk. “We spend a great deal of time and money trying to warn people that they should look after themselves,” he says. “But in the end, it’s the investor who is going to make his or her own choice.” He says that the real estate problems represent a small piece of Alberta’s exempt markets, which are a useful tool for small businesses to raise capital.
Despite the problems in exempt markets, Skauge has no plans to get out of the industry. Instead, he says he’s come up with a new structure that he believes will “fix the industry.” Rather than simply pass money between investors and developers, Skauge says Olympia Trust now plans to act as a custodian, essentially keeping investors’ money in escrow and passing it to developers when they’re ready to buy land, in exchange for title to the property. Olympia will charge developers a fee. “The crooks won’t like this new structure because they won’t have any chance to take their dollars and do things they’re not supposed to do with it,” he says.
On the other hand, Travis Cadman says he’s taking a break from the exempt markets. He now runs a company called Arizona Investar, which buys foreclosed properties in the Phoenix area, renovates them and sells them to investors. He says the exempt market has become too difficult a place to raise money, now that it’s been tainted by too many investor lawsuits and fraud accusations.
“I’ve been in the real estate space for 28 years and seen a lot. I just look at it and I’m just not comfortable,” he says. “I think there are a few shysters out there who shouldn’t be in the business.”
Selling off assets to 20/20 Vision Center. Perhaps to be used in a mall kiosk for internet eyewear sales?
http://www.marketwired.com/press-rel....a-2062868.htm
Eyelogic Systems Inc. ("Eyelogic") (TSX VENTURE:EYE.A)(CSE:EYE.A) is pleased to report that it concluded its previously announced October 1, 2015 transaction and sold certain assets and the worldwide intellectual property rights for the Eyelogic System to 20/20 Vision Center LLC ("20/20 Vision") and terminated the August 2012 US Distribution Agreement for cash consideration of $521,956 USD ($675,759 CAD based on October 9, 2015 noon price).
Company to be dissolved.:
http://www.marketwired.com/press-rel....a-2078840.htm
http://www.cnsx.ca/cmsAssets/docs/Fi...S_AND_WIND.pdf
Interesting that Mark Macdonald was paid severence with $200K worth of equipment.
And I wonder how much shareholders lost in the end at only 33 cents/share.
2015-1207 - NOTICE OF DISTRIBUTION - EYELOGIC SYSTEMS INC. (EYE.A)
December 9, 2015
Eyelogic Systems Inc. has declared a cash distribution of $0.33 per share on December 18 for shareholders of record December 11, 2015.
Trading will be halted at noon on the record date, pending delisting at the close on December 18, 2015.
All trades on December 9, 10, 11 will be cum dividend, for settlement on December 11.
Symbol: EYE.A
Record Date: December 11, 2015
Settlement: All trades on December 9, 10 and 11 will settle on the record date, December 11.
Looks like Eyelogic is still going to distribute its product in Canada, just not on the stock exchange anymore. Seems like 20/20 is going to rely on remote refraction with an ophthalmologist - with a twist using Skype perhaps.
20/20 Vision Center Acquires Eyelogic AssetsByStaff
Wednesday, November 11, 2015 12:18 AMGARDEN CITY, N.Y.—20/20 Vision Center, a provider of remote eye exam systems, recently purchased the worldwide assets of Eyelogic Systems (CNSX: EYE.A), a Calgary, Alberta-based company that develops automated refraction systems, for $521,956 USD.
The agreement, which includes Eyelogic’s intellectual property rights, transfers all of Eyelogic's title and rights to its' proprietary software code, U.S. customer list, U.S. patent and other intellectual property to 20/20.
Concurrent with the asset sale, Eyelogic obtains an exclusive and perpetual license from 20/20 for the Canadian market. Eyelogic will continue all of its' normal operations of manufacturing, selling, renting and servicing the Eyelogic System in Canada.
"We are delighted to enter into this transaction with Eyelogic,” said Charles Scott, chief operating officer of 20/20, based here. “The Eyelogic Refraction Software is highly complementary to 20/20's current operations. We believe there will be opportunities for improvements from further development and enhancements of the acquired technology that will enable 20/20 to expand our foot print and capabilities."
Mark McDonald, president of Eyelogic Systems Inc., commented, "We're pleased to hand off the development reigns to 20/20 Vision. Acquiring our core technology will give 20/20 Vision the edge it needs to secure a distinct competitive advantage in the U.S. and beyond. We're looking forward to focusing on serving our significant user base in Canada."
The 20/20 Now System offers eyecare professionals advanced ophthalmic hardware and software that makes in-store eye exams accessible and more affordable. Board-certified ophthalmologists and ophthalmic technicians use real-time HD video conferencing to produce patients’ prescriptions on the spot.- See more at: http://www.visionmonday.com/latest-n....U1OGa9Qf.dpuf
Last edited by NorthStar; 12-16-2015 at 05:36 PM. Reason: formatting
Deader than a door nail. The two largest proponents in Canada of this system in Canada (Bruce Bergez & Mr. McLean) have both been dwindled down to peanuts, not to mention both have unsuccessfully challenged the system and lost in court.
Now, here goes the world's smallest violin. Nobody is surprised here, let's be honest.
Press Release
More press releases»
Press Release
Eyelogic Systems Announces Sale of
Remaining Assets,
Distribution to Shareholders and
Wind-Up
CALGARY, ALBERTA--(Marketwired -
Dec. 1, 2015) - Eyelogic Systems Inc.
("Eyelogic") (TSX VENTURE:EYE.A)(CSE:EYE.A)
announced its intention to wind-up on November 24, 2015.
As Eyelogic has now sold its remaining non-cash
assets (on the terms set out below), the
Board of Directors has resolved to pay a cash
dividend of $0.33 per share on
December 18, 2015 to all shareholders of record
on December 11, 2015 (the "Record Date").
In order to maximize the cash available for
distribution to shareholders, Eyelogic has
completed the following two asset sales in an
effort to liquidate the remaining non-cash
assets of the Company:
- On December 1, 2015, Eyelogic sold the
- remaining Canadian eye exam assets for
- cash proceeds of $200,000 to
- Mark McDonald (President of Eyelogic).
- As Eyelogic agreed to pay Mr. McDonald
- severance of $100,000, the net proceeds
- received by Eyelogic were approximately
- $100,000. Given the unique nature of the
- Canadian eye exam assets and the
- regulatory requirements, there were only
- a limited number of potential purchasers
- and the Board of Directors believes it has
- received fair value for the assets from
- Mr. McDonald.
- On December 1, 2015, Eyelogic sold the
- remaining public company contracts to
- Target Capital Inc. (an affiliate of Eyelogic)
- for cash proceeds of $75,000.
- Given Target is one of only a limited
- number of entities that carry on the
- public controlling shareholder business,
- there were only a limited number of
- potential purchasers for the contracts
- and the Board of Directors believes it
- has received fair value for the assets
- from Target.
Upon completion of the two asset sales noted
above, in addition to the asset sale announced
on October, 9, 2015, Eyelogic has available
cash of approximately $1,375,000.
After paying the dividend of $0.33 per share
noted above (being $997,416 in the aggregate),
Eyelogic will have approximately $400,000
in cash remaining to satisfy various wind-up
costs and expenses (including outstanding
litigation liabilities, taxes and costs associated
with a final shareholders meeting and transfer
agency expenses).
The dividend will be funded from Eyelogic's
cash reserves, which resulted from the recent
asset sales on October 9 and December 1, 2015,
rather than cash from continuing operations.
The dividend distribution is intended to be a
return of capital as the corporation has
determined to windup operations and dissolve.
The distribution to shareholders by way of
return of capital is expected to be generally
more advantageous to shareholders than a
regular dividend. Shareholders should consult
with their professional tax advisor concerning
their individual circumstances and are cautioned
not to rely on the contents of this email as tax
advice.
Eyelogic intends on calling a special meeting
of shareholders in January 2016 to approve
the dissolution of the corporation. In the event
that Eyelogic is ultimately successful in dissolving
the company and settling ongoing liabilities,
taxes and litigation claims, it intends on
distributing any remaining amounts at a later
date (the amount per share is not expected
to be significant).
Read more: http://www.digitaljournal.com/pr/2762037#ixzz3uavWBZ00
Last edited by Chris Ryser; 12-17-2015 at 11:12 AM.
As I said, dead......crickets.
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