On Track Innovations Ltd. (NASDAQ:OTIV) Files An 8-K Regulation FD Disclosure
Item7.01
| Regulation FD Disclosure. |
On March 2, 2017, On Track Innovations Ltd., or the Company,
became aware of a claim filed in the U.S. District Court, Eastern
District of Pennsylvania, on March 1, 2017, against the Company
and its subsidiary, OTI America Inc., by USA Technologies, Inc.,
or USAT. The claim asserts, among other things, that products
sold by the Company to USATs manufacturing subcontractor,
Masterwork Electronics, Inc., or Masterwork, fail to conform to
promised specifications in that they do not include Apple Value
Added Services, or VAS, an add-on software feature to Apple Pay
which is not yet offered on the Companys products. USAT seeks
payment of $4,912,600 plus interest and costs, comprised of
$728,800 to cover payment for alternative products, and
$4,183,800 to cover costs of replacing the allegedly
non-conforming products already installed. The Company denies the
allegations in the complaint and intends to defend the complaint
vigorously.
On March 3, 2017, the Company filed a claim in the United States
District Court, Northern District of California, San Francisco
Division, against Masterwork. The Company seeks payment of
$2,518,000 plus interest and costs as a result of Masterworks
refusal to perform its obligations in connection with a purchase
order supplied by Masterwork to the Company, based on Masterworks
allegations that its customer, USAT, had apparently claimed that
the products do not include the VAS feature requested by USAT,
though such feature is currently not offered by the Company and
was not specified in the purchase order. The products subject to
USATs litigation mentioned above include the products subject to
the purchase order referred to in the Companys claim against
Masterwork.
About On Track Innovations Ltd. (NASDAQ:OTIV)
On Track Innovations Ltd. is a developer of cashless payment solutions. The Company’s segments include Retail and Mass Transit, Petroleum, Parking and Other. The Company offers solutions for banking, mobile network operators, vending, mass transit, petroleum and parking. The Company provides its customers with training and installation support, customer service and technical support. Its PayEnable technology can be implemented into a range of products. Its Retail and Mass Transit products include TRIO mPOS, Pico BT, WAVE, WAVE PKI, oti SATURN 6700 UNO, oti SATURN 6500 TRIO and oti SCI 6000. It also offers otiMetry and oti CONNECT 3000. Its EasyFuel Plus solution is a wireless, cashless, cardless and paperless refueling tracking and payment solution. Its EasyPark set of parking solutions provides parking fee collection, parking payment enforcement and parking management solution. Its MediSmart solution is an information management and claims submission system for the medical sector. On Track Innovations Ltd. (NASDAQ:OTIV) Recent Trading Information
On Track Innovations Ltd. (NASDAQ:OTIV) closed its last trading session down -0.10 at 1.76 with 122,124 shares trading hands.
