Real Life Performance Data

Quite a few people over at iii.co.uk, Raustovitch steadfast among them, have held on heroically to their xG shares in the distant hope that mathematics was wrong and Bobier was right. 'Lets wait for real-life performance data', seems to be their call.

Well chaps, there's good news and there's bad news.

The good news is; I have stumbled upon some actual performance data for you, done in a real-life test with real xMax equipment. Yey! The bad news is; umm, sorry, Bobier was ~wrong~. xMax is just ~nothing special~. It works, sure, but (according to people who know) its performance is 15 years out of date. Ouch! There's two websites below with the data. They are tests done in Florida with the xDrive system. The first one shows two tests done 13/3/08 and 11/3/08, you can play with the settings - a figure of 34 is required for acceptable voice, and you have to plug in the antenna location to get proper readings. On the second site, the setting required are shown as 34(signal strength) 29.30(latitude) -81.1127(longitude) 1(antenna sector). I don't have the second antenna location for site 1. The second site shows pins all over the 'Birds Eye' view of the tests area. Passing your mouse over the pins shows the signal strength.

http://www.wirelessexpressions.com/xdrive.aspx

http://www.wirelessexpressions.com/virtualearth.aspx

Aside from showing xMax's radio performance is 15 years out of date, the tests don't actually show how well an xMax system would work in real life. It's probable that performance is even worse that 15 years out of date because these tests don't include any interference. xMax is meant to work in unlicensed spectrum so *will* be subject to interference. "But", says Mr Raustovitch, "What about the Wavelet Pass Filter - the 'Key to xMax' according to Bobier - which means xMax can bypass interference?" Well have a look HERE just to remind yourself. It can't.

It won't work better in unlicensed spectrum. It won't carry more users. Their BER curve does show their true performance - despite their hurried retraction. It won't send signals further on less power. It won't need less basestations to cover an area. It won't make a network cheaper than other systems. All the revolutionary performance claims made to fool money out of investors in this stock scam are FALSE. xMax is nothing special in theory. xMax is even less special in practice. xMax is dead. xMax only ever existed so that Mooers could con people like Raustovitch out of their hard-earned money. xMax only ever existed as a scam.

What we have now with all the changes highlighted by the FCC tests is something quite different to xMax. Something new. Something regular. Something pedestrian. Something that could work. Let's call it "newMax". Raustovitch: Sorry mate. They've offered a brand new rocket-powered Lamborghini to entice you in, and switched it for a 15 year-old Ford Mondeo and hoped you wouldn't notice.

Dealer Program PPT

So now we know that the performance of the BTS250 bears no relation to what they originally claimed for xMax. Wireless Guy over at iii seems to know his stuff: "This looks like it will do a fine job of supporting a 100 or so VOIP calls and perhaps text messaging or emails..." BUT as this PowerPoint show proves they were telling the dealers that it would support 780 simultaneous calls, and that OPEX and CAPEX would be lower than other systems. Not might. Not may. Not could. But will support 780 simultaneous calls

Another interesting thing is (slide 4) that they claim the carrier (Telcentris) rates are specially negotiated - but then send me a Cease and Desist when I post them as they are too embarrassing...! And the final hilarious kicker is the launch date: April/May/June 2007!

Unless they announce they have changed their technology to the
stockmarket, they have ONCE AGAIN broken the AIM rules.

I've highlighted interesting things in red. Not all the slides are shown as quite a few are just marketing blurb. First up is the properties of the doc so you can see who wrote it.

Cease and Desist

You'll notice the 'Flashcomm and xMax' thread with the Telcentris prices has been taken down due to a Cease and Desist from parties as yet unknown. Some bollocks about copyright. I'm assured that I'll find out in a few weeks who the spoilsport is.

It seems to be OK to call xG a fraud and a scam, to say that Rick and Co are thieves, to point out the illegality and immorality of what they are doing - but to suggest that even with a conventional basestation design that the scam won't be profitable for dealers mug enough to sign up is a big no-no.

Treco / Bohman

I almost missed this gem of a comment on the 'Bohman is a Crook' thread. These are the circumstances that saw the White Knight of Treco ride to the rescue of the damsel xG. It's especially pertinent considering yesterday's results hailed the Bohman-owned Treco as the next great step for xG. A poster called xStureplan says...

"Bohman is a pathetic figure.

Bohman has essentially not done any business for the last five years.

Part from spending his time grooming his reputation as a “great” businessman, he has occupied himself with his three favorite pastimes: legal fights with his x, partying and drinking. Drinking has got him into some serious problems: Divorce (still fighting his x), breakup with family and business friends, and bad -really bad- business.

On occasions, Bohman takes a timeout from his hectic social agenda to concentrate fulltime on “the bottle”. In February 2008 he locked himself into a hotel suite in Thailand cutting himself off from the world during at least a month. Only a few old “friends” were able to access him. During this time someone (Whalman?) took advantage of the situation and talked Bohman into starting investing in xG. Whoever it was, he managed to get Bohman’s intoxicated mind into believing that a crashed ACH scam that everyone wanted to get out of, was in fact a major technological breakthrough that would soon rally (in the worst bear market since 1929!). Over the next few months Bohman invested close to SEK 100 million in xG at a level of about USD 5. Needless to say, that money is now forever lost.

In a last attempt to rescue his investment, Bohman formed the empty company Treco in December to enter into a contract with xG to purchase a number of base stations. He sent out press releases pretending to be a billionaire (when in fact he was seriously running out of cash himself), and pretending to be a major shareholder in EFG (when in fact he never held more that 1% of that company and he has probably sold most by now to fund his lifestyle).

Conclusion: someone was using Bohman as a dumping station to get out of their holdings in xG. Now, finally, the world knows what Bohman himself has known many years: that he is an “x”. "

Final Results - '08

Those of you familiar with xG will be able to look through the hyperbole and spot the inaccuracies, lies, and exaggerations that these reports always contain. It’s always entertaining to compare what we know to be true with what xG say is true. Lets’s remind ourselves about AIM rule 16, which in essence says that potentially stock moving news – good OR BAD – must be released to the market as it becomes known.

Where’s the news about ACH? Where’s the news about the collapse of the Florida launch? About the base stations and phones not having FCC approval? About the base stations being returned as they didn’t work?

Let’s have a look at their key points and compare them with the truth:

They Say:
· Recorded sales of a total of 327 base stations, resulting in $16.4 million in revenues, compared to $0.3 million in 2007. Operating Profit before interest and share-based compensation was $7.7 million (2007: $6.2 million loss) and xG made a net profit of $2.0 million (2007: $12.0 million loss)…. [costs of] $6.3 million related to non-cash stock-based compensation costs (2007: $7.1 million)

We Know:
· They’ve shipped basestations to customers that didn’t even want them, and then booked those down as ‘Sales’! How the hell can they sell BTS without FCC approval! They can’t be used, and they don’t work as advertised. So from the very start these accounts are a lie, or at the extreme end of aggressive accounting – booking BTS shipped (to customers who can’t use them, or don’t want them) as receivables and those future receivables as current sales.
· Share based compensation! Who are they compensating and for what?! Fredrik Walhlman, James Woodyatt for the chop-stock they’ve sold, and perhaps a few coppers for Marc too. It’s $6.3M worth of shares – what a pity they can’t be sold for full price, huh?

They Say:
· The Company remains well-financed, with year-end net cash and cash equivalents of $15.8 million (2007: $32.7 million).

We Know:
· They are burning through cash at a record rate: half their cash gone in one year. It’d be interesting to know exactly what these ‘cash equivalents’ are, and what proportion of the cash went to making a network, and what proportion ended up in the hands of Mooers and Branton? I bet they aren’t paying themselves in stock….

They Say:
· The initial phase of deployment of the xMax BSN250 base stations in the Southern Florida market has begun, xG took delivery of the first fully commercial, production-ready TX60 handsets designed and developed by Cambridge Consultants Ltd. and completed testing the integration of the TX60 handset with our BSN250 base station, enabling xMax mobile VoIP calls between our TX60 handsets and base stations. …..The xMax system provides an extended range of operation and is expected to provide superior handset battery performance and double the call capacity of mobile WiMAX networks.

We Know:
· ‘Deployment has BEGUN’? They LAUNCHED November 2006! Their only actual customer dropped them, they delivered unworking BTS to another (and booked it as revenue even though the money was refunded). Where’s the news about any of this? Evidently I missed the news that none of the equipment has FCC approval – and none of it works as advertised.
· Double the call capacity of WiMax! Superior handset battery life! They can’t even get it to work in a very simple, basic demo! Marc – I’ve worked out who your dope dealer is…

They Say:
· xG signed an agreement with Treco International, S.A. to act as its exclusive infrastructure partner in the United States, allowing xMax carriers to finance, by equipment lease, a substantial part of the capital costs needed to deploy xMax networks.

We Know:
· That Johan Bohman who owns Treco is a cocaine fuelled dodgy dealer. And I suspect that Treco seems to be a loan shark for xMax dealers. It’s a clever idea. It probably works like this: All the ‘sales’ go though Treco, which means that xG don’t have to announce who their ‘customers’ are. The BTS is shipped – whether it works or not, or the customer wants it or not – and xG record a ‘sale’ of $75k. Treco gets a kickback of $x,000 (possibly in ‘Share based Compensation’)?. Treco start sending demands to the customer of say $5k a month forever…. The only one that loses is the ‘customer.’
· Oh, and has anybody noticed that a BTS seems to be $50k to anyone else, but if you order 1000 the price goes UP to $75k!? Could that be to increase the figure the end ‘customer’ would owe Treco? It can’t be an increase in unit costs, because they are boasting elsewhere of a margin of 92.5%…!

They Say:
· Continued patent filing activity, enhancing the Company's portfolio of intellectual property. The patent portfolio now comprises a total of 47 United States matters (10 patents issued, 18 pending utility applications and 19 pending provisional applications) and a total of 82 foreign matters (8 issued, 64 pending applications, and 10 applications).

We Know:
· Patents are worth nothing unless the invention actually works, and none of xG’s have raised a flicker of interest from any technological expert. Luckily nobody except Marc has taken out a patent on Gullibility.

Rick Mooers says:
"We have created the xMax Authorized Carrier Partner Program and are actively talking to interested parties and building our pipeline of customers."

We Know:
· They’ve lost: SkyTel, Telefonica, National Grid, Gama, Far Reach, Flashcomm, and ALL the other ‘customers’ that were signed up for the $57M pre-launch in the non-IPO documents. EVERY customer they’ve boasted about they have lost. They also name-dropped: Bear Sterns (old one!) Microsoft, Google, Credit Suisse, GE, Barclays, and the good old Pheonix Foundation. Well, they all came up trumps didn’t they?
· They’ve also lost/parted company with: 2 Nomads, their second biggest shareholder, and more PR companies than I can remember. Great job Rick.

They Say:
· Another significant industry trend witnessed in 2008 was the considerable increase in the number of subscribers choosing flat-rate, unlimited minute wireless calling plans, particularly prepaid plans.

We Know:
· None of them were your subscribers Rick! End users for xMax, umm, Zero.

Richard Mooers..... Roger Branton..... Mats Wennberg..... Olaf Hendgren..... Robyn Harte-Bunting..... Victor Suno..... James Woodyatt..... Palmi Sigmarsson..... Stefan Bennici ..... Gunnar Engellau..... Marc Dannenberg..... Jonas Krepp..... Paul Behler..... Charlie Geller..... Daniel Briggs..... Simon Starr..... Xavier Moreels..... Johan Bohman…and Stuart Schwartz – YOU BOYS TOOK A HELL OF A BEATING – A HELL OF A BEATING.

The Bank Hapoalim Story

Ohh, Johhhnnn. Johhhnn. Where are you John? You remember yesterday when you posted about David Falt having "lost his lawsuit against xG in which he tried to screw shares out of them"? And you remember when I took the opposite view? That it was xG that screwed Falt?

Well look what a few words of Yiddish can get you... The truth is that xG issued certificates to Falt, and others, under the name of xG Technology LLC. They then claimed they had changed their name to xG Technology INC and did the dirty on him and all the others. Here is the truth: as Realtid.se reports - HERE - Roger Branton issued the shares around March 29, 2005. Roger authorized them - 100%. Falt deposited them in the Bank of New York. Later on that year he sold some of them, but when the bank tried to get the certificates xG told them they were Null and Void. xG had stabbed him in the back. Why? Because (reading between the lines) he was disgusted at the way xG were doing business. He was dangerous to them, because he could expose them - so they tried to shut him up by suing him.

All during 2006, claims and counter claims went back and forth between Bank of New York, xG, Bank Hapoalim, Falt and the others, and Roger Branton. He claimed that the certificates HE had signed were null and void because they were issued in xG LLC, when the company was now called xG Inc. Now let's look at the letter John: You'll notice two things. Firstly you'll see that Hapoalim are siding with Falt, they are helping him. He's the one that's been ripped off. Secondly you'll notice that Hapoalim state that xG, their technology, and their principals are DODGY AS FUCK.

And to further prove just how dodgy, nasty, shallow, and vindictive xG are have a look at the two documents beneath it. They were both filed on the 9th November 2006, just four days before the date on the letter from Hapoalim. You'll see that Roger Branton - the same asshole that issued the share certificates - ONLY THEN changes the name from LLC to Inc despite the fact he'd been arguing all year that the name change had already happened! Obviously one suspects that it was only done to deny the sale of the perfectly legal certificates issued. In the writ that followed Hapaolim accused xG of FAILING to inform them of their name change from xG Technology LLC to xG Technology Inc. In fact - as evidenced here - when Falt sold the shares the certificates were perfectly valid

Rick you are a shit.
Roger you are a shit.

John? John? I can't hear you...Speak up....

Rick Mooers CPA

To become a Certified Public Accountant (CPA) is a great achievement. In total there’ll be around SEVEN years of studying to get to this point, and many people have to retake the exams several times such is their difficulty. A CPA denotes a professional of respectability, integrity and honesty, who will according to their code of ethics “commit themselves to honor the public trust” and give “unswerving commitment to honorable behavior, even at the sacrifice of personal advantage”.. .

It turns out that Rick Mooers passed the CPA exam in 1986 (congrats Rick) and got his license number: CP4184. All he had to do was submit some work he’d done as proof of practical experience and he would be a licensed CPA. But, even though he’d done that experience with a couple of firms in Maine he failed to submit anything to the CPA office. Why? He’s 99.9% there! Very strange.

Hmmmmm. Could it be that he discovered that the penalties for a CPA found responsible for financial fraud are draconian? Go straight to Bubba, do not pass go. What would’ve been a civil crime for Joe Public ends up being a criminal offense for a CPA.