Tech Firm CartaSense Seeks Protection From Creditors Amid 34 Million Shekel Loss
Translated & summarized from N12 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 attributes its financial distress to a decade of setbacks, including failed investments and market disruptions. CartaSense is seeking to sell its operations as a going concern within three months while operating on reduced expenses. The company's founders and investors have reportedly covered significant expenses.
The story in 6 lines · by baba
- Tech firm CartaSense seeks court protection from creditors due to 34 million shekel losses.
- The company reported debts totaling 13 million shekels.
- CartaSense attributes its financial collapse to a series of events since 2014.
- A recent court ruling ordering payment to crypto investors was the final blow.
- Founders and investors have covered significant expenses, with some working without pay.
- CartaSense estimates its patents are worth $30 million and seeks to sell 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 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 the Internet of Things (IoT) concept, developing wireless sensor networks for long-range, low-power data transmission.
According to the filing, CartaSense attributes its downfall to a series of events over the past 12 years. These include losing key investors Zebra Technologies and ST Micro in 2014, a failed 2017 token offering for a blockchain-based logistics application, and significant setbacks in the Russian market due to the COVID-19 pandemic and the war in Ukraine. The company also stated that it experienced revenue loss during the "Swords of Iron" war.
The final blow, the company claims, 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). Additional debts include 1.3 million shekels to financial services firm ERB, 900,000 shekels to the 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 the next three months with average expenses of 136,000 shekels monthly, projecting revenues of 480,000 shekels, during which time its operations could be sold as a going concern.
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