If the deal were dead, it isn't hard to issue an 8-k to that effect. The more likely scenario is Avis is attempting to squeeze the little guy and idsy is saying we have 15 years in this thing, and they are trying to take a hard line. Both have some leverage. And just like in D.C., both sides play chicken down to the wire. I go back to Nelson saying at year end, why wouldn't we use idsy solution, it pays for itself. Then, following that, IDSY gets a patent that gives them additional leverage. Then, we here the progress integrating the system with Zip on the last call. IDSY isn't the only player here with a lot of time invested. A deal will get done and the interesting part is we'll find out Jagid's negotiating ability.
Regardless of how the Avis/IDSY non-compete plays out, IDSY owes it to its' shareholders to keep them informed. A target date was missed. Failure to communicate with shareholders speaks to the larger issue of management credibility. Jagid made it a point to mention the "memorandum of understanding" in his last conference call. What happened? It's as if IDSY is hiding. Right now IDSY is looking real bad
Avis wanted to extend non-compete again and continue to evaluate latest telematic unit. IDSY said you need to pay for extension of non-compete and Avis balked. Avis is probably still evaluating and discussing but without a non-compete. IDSY is calling other rental and car share companies to gauge interest. Since Avis deal has not been cancelled, there is no need for an 8K or PR
Very poor IDSY management communication with shareholders. When you promise to do something then don't you need to explain. Even if it is just to say things have been delayed. These guys are irresponsible and need to be held accountable by shareholders.
Keep in mind Avis has 10% of the shares and a seat on the board of directors which can create a huge conflict of interest. The longer the silence lasts the more it appears a lawsuit or SEC investigation is in the works. Unfortunately this is how Wall Street works these days. Hope I am wrong, but the shareholder trust has been burned by management.
Numerous calls to IR have gone unanswered, with is inexcusable.