Wavefront Technology Solutions Inc V.WEE.H

RE:RE:RE:RE:RE:RE:RE:RE:WAVEFRONT ANNOUNCES SECOND QUARTER 2019 FINANCIAL RESULTS

[AboveBoard]

Weeble, you do mention valid points. However, taking a new technology into the oil business may be a lot tougher than we realize. 

Wavefront has representation in 65 countries.   This is mentioned on Page 2 of the Management and Discussion.  If this is the case now, then you'd  hopefully expect some positive headway.  Wavefront changed their course a while back by focusing on the Middle East market.  Wavefront rid itself of Tube and Bailer and fine tuned their business model.  Will they be able now to take their business to the next level now?  

Page 2 Management Discussion
Wavefront currently has distribution, agency or representation (“Distributor”) agreements that encompass representation in 65 countries and permit Distributors to market and resell the Company’s suite of technologies to end users or E&P’s. Distributors are effective alternative distribution channels used to leverage Wavefront’s global reach as well as reducing the Company’s overall infrastructure as the Distributor deals directly with their customers; the end users or E&Ps. The agreements provide that the Distributor is generally responsible for contracting directly with and fulfilling the provision of goods or services to the end user, i.e., E&Ps, or their customers, and thus the Distributor is responsible for the execution and costs of work performance with their customers, inclusive of their customer’s satisfaction for its entire general and administrative, sales and marketing expenses. Wavefront is also not exposed to the credit risk decisions of the Distributor; thus, the Distributor bears all risks and rewards in dealing with its customers. Like any other customer Wavefront does however, have credit risk in collections from its Distributors.