Israeli IoT Pioneer Cartasense Files for Bankruptcy Protection Amidst Debt Crisis
Translated & summarized from Ice by baba
Israeli technology firm Cartasense, specializing in IoT for supply chain monitoring, has filed for bankruptcy protection due to approximately 13 million shekels in debt. The company, founded in 2007, faced multiple setbacks including loss of investors, failed ventures, and market disruptions from global events. It seeks a buyer for its operations and intellectual property, valued at an estimated $30 million, to repay creditors.
The story in 5 lines · by baba
- Israeli IoT company Cartasense filed for bankruptcy protection with 13 million shekels in debt.
- The company seeks a buyer for its operations and intellectual property, valued at $30 million.
- Cartasense faced multiple financial setbacks over 12 years, including investor withdrawals and failed projects.
- Recent blows include a court ruling for 500,000 shekels and revenue loss from the "Swords of Iron" war.
- Chairman David Weissman is working without pay as the company's staff is reduced to four employees.
Israeli Internet of Things (IoT) company Cartasense has filed an urgent request with the Central District Court for a freeze on proceedings and the appointment of a trustee to facilitate its economic rehabilitation and sale. The company, a pioneer in its field, reports accumulated debts of approximately 13 million shekels and aims to find a buyer for its operations and intellectual property as a going concern within a three-month operational plan.
Founded in 2007 by Chairman David Weissman and Director Yaron Kaufman, Cartasense initially produced wireless sensors and hardware. It later evolved to develop software and artificial intelligence platforms for real-time monitoring of supply chains, particularly in the pharmaceutical, food, and logistics sectors, focusing on cold chain management. The company's systems utilize low-power, long-range transmission on free frequencies.
According to the company's filing, its financial collapse is the result of a series of setbacks over the past 12 years. These include losing international investors Zebra Technologies and ST Micro in 2014, a failed attempt to launch a blockchain-based logistics token in 2017, and severe impacts on its Russian market entry due to the COVID-19 pandemic and the Russia-Ukraine war. The "Swords of Iron" war also negatively affected its revenues.
The final blow, the company stated, was a court ruling in March that ordered it to pay 500,000 shekels in compensation to three investors from a failed crypto venture. Following this judgment, key investors David Weissman and Amotz Ben-Artzi ceased financial support.
Currently, Cartasense owes about 13 million shekels and has significant accumulated losses, with its 2023 tax report indicating losses of 34 million shekels to be carried forward to 2024. Major debts include 8.8 million shekels to shareholders who funded operational expenses, notably David Weissman (900,000 USD), Shlomo Berkovich (700,000 USD), and Yaron Kaufman (650,000 USD). Additional debts are owed to financial services firm ERB (1.3 million shekels), law firm Shevel (900,000 shekels), employee wages (500,000 shekels), and the aforementioned crypto investors.
To survive, Cartasense has reduced its workforce to four employees. Chairman Weissman is working without salary, and subcontractors are providing services voluntarily or on deferred payment terms. The company estimates its patent portfolio is worth around 30 million dollars and believes a three-month freeze will allow a trustee to negotiate with potential buyers and sell the intellectual property and operations as a single unit, maximizing returns for creditors.