AirIQ Inc. of Pickering, Ont. said an un-named firm has offered to provider the company with an unspecified amount of money.
In a press release Monday, the telematics vendor said it received “a non-binding letter of intent that would provide funding to the company …”
Without naming the originator, the company said the “new investors have requested a role in management as well as representation on the Board of Directors.”
AirIQ’s products include OnBoard, which is comprised of a Global Positioning System (GPS) satellite receiver, processor and wireless transceiver and is designed to let fleet dispatchers track the locations of vehicles. The company did not say whether it would accept funding from the potential investors or offer them directorships.
Last month, AirIQ announced it would cut its work force by 36 per cent, which would save the company about $1 million a year. Revenues for the nine months ending Sept. 30, 2008 were about $9.9 million, down 50.6 per cent from the same period in 2007. The firm reported a loss of $1.1 million for the quarter ending Sept. 30, 2008.
But when the company attributed the revenue drop to lower analogue sales and said in January most revenue is from current customers’ air time fees, meaning it does not depend heavily on new sales.