ImageWare: New Broken Promises And No Revenue Ramp In Sight

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About: ImageWare Systems, Inc. (IWSY)
by: Aristides Capital
This article is exclusive for subscribers.
Aristides Capital
Long/short equity, Deep Value, special situations, contrarian
Summary

ImageWare CEO Jim Miller has a long history of broken promises, losing more than $140 million while execs have made $14 million.

In spite of many new "partnerships," the company's prospects have not improved. The much touted Walmart de México deal is at a dead end, like every past large deal announcement.

The company's recent announcement of $3.6 million in recurring annual revenue beginning in September 2015 is absurd; the purported customer has only $230k in annual revenue itself.

At an investment conference last week, Miller repeatedly demonstrated speech and body language signs of dishonesty. We believe the company has no realistic prospects of positive cash flow.

ImageWare shareholders are currently paying 35 times revenue for a perennial money-losing company whose lead product is merely a secure database in the cloud.

"Bad guys are really smart and they know a good thing when they are onto it."

"A lot of things that people say they can do, again, look closely as you do your due diligence,