Wednesday, February 27, 2008

Ojo Videophone - Worldgate Communication Receive Notice of Default

Hello! As usual, I am keeping my eyes on the issue of Worldgate Communication for you all. I found this from another blogger site outside of I copied and pasted this on my blog site that way to keep you in the loop. See below:


WorldGate receives notice of default

Bucks County Courier Times

WorldGate Communications of Bensalem, the financially struggling maker of the Ojo video phone, announced in a Securities and Exchange Commission filing that it's in default on a bond agreement.

YA Advisors, which holds convertible debentures — bonds that can be converted into shares of the company's stock — said the company is in default for failing to maintain current financial statements. As a result, the group is demanding payment of $6.7 million, including interest, the full value of the bonds.

Earlier this month, WorldGate announced it was shutting down operations because it hadn't received payment from its biggest customer, Snap!VRS. In a competing, statement, Snap!VRS said it didn't owe WorldGate any money.

WorldGate said it's disputing the default notice.

On Snap!VRS's end, it is almost a month now that the Ojo phone numbers are not yet workable. IP-based numbers are working with the old technology tool of H323. Like you, I just wish Snap!VRS would report on a weekly basis to let us know how the progress is going and what to expect from their next step. However, as usual from all companies, they keep it quiet. My guess it probably was a wake up call on their part because they should have been prepared for this kind of operation shutdown. Rule of Thumb is to always have a back up plan. Always know your plan "B". I know for sure all TRS and VRS services have back up plan in the event system stops operation for some reason and it routes to the next operations. Sadly, Snap!VRS did not prepare that. What I was not prepared as for sure the same for you was that it is taking almost a month now and they still have not yet resolved the matters.

On a side note, I do not understand why Snap!VRS are telling their customers to add their IP named resolution on to Sorenson VP100, Vp200 and Dlink. They should focus entirely on their equipment and get it up and running. FYI Snap!VRS, I do not have any Sorenson VP100, VP200 or a Dlink on my desk. Why do I need many of those equipments on my desk? As I stated above, always prepare plan B. Knowing Ojo is not 100 percent operable, my plan B is to use the Webcam. Simple as that.

Come on Snap!VRS, get moving. We are waiting!!!!!!

Stay tuned!!!

Thursday, February 21, 2008

Ojo Videophone - Today updated letter from SnapVRS CEO

Hi! It has been approximately 3 weeks ago that Worldgate Communication shut down its operations as a first step to winding down its business to all Ojo customers, Snap!VRS CEO, Richard Schatzber, has addressed the latest report. Please go to the to read his report. This letter were meant for all SnapVRS Ojo Customers. Hopefully soon this will be resolved.

Stay postive on this.

Stay tuned!


Friday, February 8, 2008

Ojo Videophone - Newspaper Articles

I have stumbled upon this newspaper addressing about Worldgate Communications shutting down operations last week due to seeking payment from it largest customer (Snap!VRS).

I have cut and paste this clipping from Bucks County Courier Times in which this reporter had addressed. Worth to read and understand what is going on. This operation being shut down has affected not only us Deaf/HH users but as well the hearing customers too. stay tuned!!!

Worldgate: Shut down

Bucks County Courier Times

WorldGate Communications, maker of the Ojo personal video phone, has shut down operations as it seeks payment from its largest customer.

In a statement to the Securities and Exchange Commission, and on WorldGate's Web site, the Bensalem company said it stopped operating Jan. 30, “as a first step to winding down its business, which will occur if the company is not able to secure payment ... and/or new financing.”

While WorldGate didn't name the customer, Snap!VRS, which provides video relay services for the hearing impaired, confirmed it was that customer in a letter on its own Web site. It also disputes WorldGate's statement.

“We are current on all payments and do not owe WorldGate any money,” Snap!VRS CEO Richard Schatzberg said in the letter. “We feel so strongly about our position and are so intent on resolving this matter swiftly, that we have offered to submit this disagreement to immediate binding arbitration, a process by which an independent third party decides who is right. WorldGate has rejected this offer.”

WorldGate CEO Hal Krisbergh declined to comment Thursday afternoon when reached by cell phone.

“I would like to, but there's a lot going on that I can't get into,” he said. “I'd really rather just stay with our public announcement.”

In the meantime, all Ojo phone service, which was provided by WorldGate, is down.

Krisbergh founded WorldGate in 1995 to develop products that would provide Internet services through cable, such as Web TV. But the concept never took off, and by 2002 the company was failing. It liquidated all its assets and poured them into developing Ojo. Motorola agreed to distribute the phone, which went on sale in May 2005.

In February 2006, WorldGate and Motorola ended that arrangement and WorldGate took on sole responsibility for getting Ojo into stores. At the time, Krisbergh indicated WorldGate was unhappy with Motorola's high pricing, which it felt kept the product out of major retailers and out of reach for most households.

Upon taking control of Ojo retailing, WorldGate slashed the price by $300, introduced a cheaper Ojo with fewer features and pursued national and international distribution deals.

In June, WorldGate and Snap! trumpeted a deal to provide Ojos to deaf and hearing-impaired customers, who traditionally use interpreters to hold telephone conversations.

WorldGate has struggled financially since its inception. It's never turned a profit and the company has never released sales figures for its Ojos. For the quarter that ended Sept. 30, the company reported a $2.7 million loss.
Crissa Shoemaker DeBree can be reached at 215-949-4192 or

February 8, 2008 10:51 AM

Wednesday, February 6, 2008

Ojo Videophone - Updated letter from SnapVRS CEO

Please direct your attention to Richard Schatzberg, SnapVRS CEO has addressed a letter to all the SnapVRS Ojo Customers in the matter of the Ojo videophone problems.


Tuesday, February 5, 2008

Ojo Videophone - Problems

On Wednesday, January 30, 2008, those of you who have already have Ojo Videophones obtained from SnapVRS may be experiencing problems to their Ojo. Since it has been a struggle and almost a week of not being solved, the Worldgate Company has issued a press release on February 4, 2008. I have copy and paste here on this blog their press release.

Press Releases


The Company is currently in a dispute with its largest customer over the payment of significant monies which the Company believes are owed to it. The customer's refusal to pay such monies has contributed to a shortfall in the operating cash available to the Company to continue operations. Accordingly, on January 30, 2008, the Company shut down its operations as a first step to winding down its business, which will occur if the Company is not able to secure payment of the monies believed to be owed and/or new financing. The Company continues to explore potential financing opportunities and is also pursuing legal recourse against the customer. The Company would intend to resume operations if it can obtain financing or payment of the monies believed to be owed in a timely manner. Without such financing or the payment of monies believed to be owed, however, the Company will continue its plan to wind down the business.

If you wish to go to their website, please log onto Hit the Corporate button and you will see Press Release. Hit Press Release and you will see the 2/4/2008 information release.

This may be the reason why we are experiencing the problems. I do not know which largest customer they are disputing over the payment. Hopefully there will be a solution soon. Stay tuned.....