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NYSE:AZ12/02/2025

Pelican Way Research Short Report on AZ

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A2Z Cust2mate - Pelican Way Research Short Report

A2Z CUST2MATE $AZ

Pelican Way Research • Published December 2, 2025 • A Global Web of Phantom Orders and Failed Deployments

CORE INVESTMENT THESIS

A2Z Cust2mate is a smart shopping cart company built on phantom orders and broken promises that has seriously misled investors about its past deals to boost the stock price.

Despite claiming orders for tens of thousands of carts worth hundreds of millions of dollars over the last few years, Cust2mate has delivered barely a few hundred units in the last two years—meaning their claimed orders were 42X higher than implied deliveries. Pelican Way Research believes this pattern will continue with their latest announced deal, making shares a compelling short opportunity.

COMPANY OVERVIEW

COMPANY NAME
A2Z Cust2mate Ltd.
Smart shopping cart technology company
HEADQUARTERS
🇮🇱 Israel
NASDAQ-listed company
CURRENT BUSINESS
Smart Shopping Carts
Retail technology for automated checkout
LEADERSHIP
Joseph Bentsur
Chairman, former CEO with questionable track record
MARKET CAP
$300.65M
Stock price: $7.02 per share
KEY RISK
Phantom Orders
$500M+ in claimed orders but minimal actual deliveries

KEY FINANCIAL RED FLAGS

ORDER-TO-DELIVERY GAP
42X

Claimed orders 42X higher than implied deliveries calculated from revenue—suggesting phantom deals

TOTAL SMART CART REVENUE (3 YEARS)
$11.1M

Only $11.1M in smart cart revenue from 2022-2024 despite hundreds of millions in announced orders

CUSTOMER CONCENTRATION
97%

~$10.8M of the $11.1M (97%) came from a single customer (Yochananoff)—all other "deals" generated virtually nothing

IMPLIED CART DELIVERIES
~70 carts

Based on revenue data, only ~64 carts delivered in FY24 and ~70 through 3Q25—versus thousands claimed

CLAIMED ORDERS VS. IMPLIED ACTUAL DELIVERIES

The massive gap between announced orders and revenue-implied deliveries reveals the phantom nature of Cust2mate's business

Thousands
of Carts
~134
Carts
Claimed vs. Actual (2Y)

Orders claimed 42X higher than implied deliveries based on revenue analysis

SMART CART REVENUE BREAKDOWN (2022-2024)

Yochananoff (Single Customer)

$10.8M

The ONLY meaningful source of revenue. Company's flagship customer represents virtually all smart cart revenue.

All Other "Customers" Combined

$300K

Trixo ($25M "order"), Hex 1011 ($166M "order"), Franprix (30,000 cart "deal"), Morton Williams (100 cart "order")—all generated essentially NOTHING.

$300K in leftover revenue = approximately 37 carts delivered outside of Yochananoff (using $8,300/cart implied price)

KEY PLAYERS

Joseph Bentsur

Chairman & Former CEO

Maintains at least three different LinkedIn profiles with contradictory information. Previously president at Inrob Tech which was delisted, with four hedge funds and general counsel facing SEC issues. No LinkedIn profile mentions Inrob Tech tenure.

Alan Rootenburg

Current CFO

The FY24 annual report omits ~74% of his professional history, including Talware Networx (SEC registration revoked) and numerous failed penny stocks in unrelated sectors. Track record consists almost entirely of defunct microcaps.

Gadi Levin

Former CFO

Recruited Rootenburg after overlapping ventures. Curiously omits Cust2mate tenure entirely from LinkedIn profile despite it being a ~$300M market cap company. Appears to want to distance himself from the company.

Hex 1011 (Thailand)

Alleged Customer - $166M "Order"

A cybersecurity firm announced as ordering 20,000 carts (~$166M). Thai DBD filings show company has less than $10,000 in assets—barely enough to buy ONE cart. Cust2mate not mentioned on Hex's website partner page.

Trixo Group

Alleged Customer - $25M "Order"

Point-of-sale company (NOT a retailer) with supposed 3,000 cart order worth $25M. Revenue analysis shows only ~$300K could be attributed to all non-Yochananoff orders combined, implying minimal actual delivery.

M. Yochananof and Sons

Primary Customer (97% of Revenue)

Large Israeli retailer representing virtually ALL of Cust2mate's smart cart revenue (~$10.8M of $11.1M). Even Yochananoff's second order for 1,700 carts appears unfulfilled based on revenue math.

Morton Williams (NYC)

Alleged Customer - 100 Cart "Order"

NYC-based grocer with supposed 100-cart purchase. In-person due diligence found only original pilot store had carts. Import/export data shows only ONE shipment from Cust2mate since December 2021.

Franprix (France)

Alleged Customer - 30,000 Cart Framework

French grocery chain with framework agreement for up to 30,000 carts via IR2S integration partner. No updates since August 2024 pilot announcement. Revenue data shows no meaningful contribution.

Pelican Way Research's Verdict

According to Pelican Way Research, A2Z Cust2mate ($AZ) is held together by phantom orders, broken promises, and a management bench that wouldn't pass due diligence at the lowest-tier penny stocks. For years, Cust2mate has issued flashy press releases touting massive deals with customers who either cannot pay (Hex 1011 with <$10K in assets), don't exist in the relevant industry (Trixo is a POS middleman, not a grocer), or never receive the products. Despite claiming ~$500M in orders for tens of thousands of carts, the company has delivered barely a few hundred units in two years. Import records confirm Cust2mate has shipped almost nothing since 2021. Pelican Way Research concludes that shares are headed materially lower.

🔻 PELICAN WAY RESEARCH SHORT POSITION
Management track record suggests continued failure to deliver on promises