Tech Firm CartaSense Seeks Protection From Creditors Amid 34 Million Shekel Loss
Translated & summarized from Mako by baba
Israeli technology firm CartaSense has requested court protection from creditors, citing 34 million shekels in losses and 13 million shekels in debt. The company, founded by David Weissman and Yaron Kaufman, blames a decade of setbacks, including lost investors and a failed crypto venture, for its financial distress. CartaSense proposes a three-month operating plan with reduced expenses to facilitate the sale of its business as a going concern.
The story in 5 lines · by baba
- Tech firm CartaSense seeks court protection from creditors due to 34 million shekel losses.
- The company reported debts of 13 million shekels and significant financial setbacks over 12 years.
- CartaSense attributes its downfall to lost investors, a failed crypto venture, and war impacts.
- Co-founders David Weissman and Yaron Kaufman are among major creditors and investors.
- The company proposes a three-month plan to sell its business as a going concern.
Israeli tech company CartaSense has filed a request with the Central District Court to freeze proceedings against it and appoint a trustee, citing a need for economic rehabilitation. The company, which specializes in real-time monitoring, tracking, and data analysis solutions for supply chains, particularly in the pharmaceutical, food, and logistics sectors, reported debts of 13 million shekels and losses of 34 million shekels carried over into 2024. Its financial reports also show losses of 1 million shekels in 2022 and 2 million shekels in each of the following two years.
Founded in 2007 by David Weissman and Yaron Kaufman, who also serve as its chairman and director respectively, CartaSense began as a manufacturer of wireless sensors and hardware before evolving into a provider of software and AI platforms for end-to-end supply chain transparency. The company was an early adopter of IoT technology, developing wireless sensor networks for long-range, low-power data transmission in logistics.
According to the filing, CartaSense attributes its downfall to a series of events over the past 12 years. These include the loss of key investors Zebra Technologies and ST Micro in 2014, a failed token offering for a blockchain application in 2017, and setbacks in the Russian market due to the COVID-19 pandemic and the war in Ukraine. The company also cited revenue losses stemming from the "Swords of Iron" war.
The final blow, the company stated, was a court ruling in March that ordered it to pay 500,000 shekels to investors in its failed crypto venture. This led active investors, including Weissman and Amatzia Ben-Artzi, to cease further funding. CartaSense has since reduced its workforce to four employees, with Weissman working without salary and subcontractors providing support pro bono.
The company owes 8.8 million shekels to shareholders who covered its expenses, including Weissman ($900,000), Shlomo Berkovitz ($700,000), and Kaufman ($650,000). It also has liabilities of 1.3 million shekels to financial services firm ERB, 900,000 shekels to law firm Sheblet, 500,000 shekels to employees, and the amount from the crypto investors' lawsuit. CartaSense estimates its patents are worth $30 million and proposes operating for three months on a reduced budget, projecting revenues that could allow for the sale of its business as a going concern.
Mentioned
