A Global Innovation Partner
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Shareholder Letter - Jan. 2012 |
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The third quarter of 2011 has been active for AcuNetX. There have been changes in management resulting in the resignation of Robert Corrigan in September. The Board assigned the Chairmanship to Chapin Hunt with his responsibility of identifying a new CEO and assumed that post. New Sales were immediately implemented with an aggressive sales campaign and the hiring of a sales consultant which increased the monthly sales. Management has acquired a CE which means that our products conform with the European market allowing AcuNetX to sell in the European markets. AcuNetX is currently opening up markets in Ireland, Scotland and England and identifying new distributors. Additionally, management has dramatically increased a customer service and repair program, which had been sorely lacking. The customer service program has resulted in new orders, increased sales and the signing of new distributors. New technology is being instituted for the Company’s three products, which required needed updating. By the upgrade of the VNG, the Hawkeye and the Safety Scope, Management has increased pricing with more sales along with new markets becoming available. The company has photographed each individual component and is producing a training manual and trouble-shooting guide for customers and distributors. While keeping the FDA approved facility in Torrance, Management has employed Jack Ferguson, a former Disney engineer and Navy Seal, who is upgrading the HawkEye and Safety Scope and is able to repair company products. The company is going to hire well trained engineers who are disabled war veterans from the two wars who will assist in servicing the company products. Mr. Ferguson is also preparing for the upcoming FDA inspection and backing up the Company’s main provider of VNGs s so there will be no lack of continuity. In November and December two presentations were made to the Barrows Neurological Clinic with the Safety Scope for concussion investigation. AcuNetX Hawkeye won the bid for the State of South Carolina and we have increasing HawkEye orders monthly. Past management had failed to file 8K’s, 10 Q’s, and 10K’s, accurate financial statements and failed to keep the company in good standing with the Secretary of State in Nevada. Current management immediately reinstated the company’s standing with the Secretary of State of Nevada, filed an 8K, met with the company's former CPA, Alex Limbert, to retain records and hired a new book keeper, Corina Fortes to begin updating financials for the past 3 years. The Company has hired a consultant to begin working with its Creditors this month. During the past two years there was an ongoing discussion with the Cascade Company that had been announced a year ago. Subsequently Cascade had expressed an interest and made several proposals/offers to purchase all or parts of AcuNetX. After several meetings with Cascade, the Board of AcuNetx could not recommend to the shareholders any of these proposals. The idea proposed would have sold all of AcuNetX assets, given up its office and production personnel and received a licensing fee/income which was never determined while AcuNetX would have kept all of the payables. This deal was a non starter as it was not in the best interest of AcuNetX. On November 14th, 2011, The Board made the decision to cancel the November 17th, 2011 Shareholder meeting for reasons stated in the most recent letter sent to you. An impromptu meeting was called by several shareholders on November 17th 2011. At this telephonic occurrence several shareholders suggested a new slate of the Board of Directors consisting of former CEO, Ron Waldorf and his appointee, Wes Crenshaw. At that meeting Steve Butler considered resigning from the Board and later did so that day in writing. Upon receipt of his written resignation, as the sole director, I appointed two new board members, Cathy Elliott Jones and Frank Card, not the suggested slate due to certain conflicts of interest. There have been a minority number of shareholders who have attempted to perpetrate fraud on both the Board of Directors and the majority of shareholders who have been marginalized by this attempted take over. The interest of the perpetrators is not the best interest of the Company and is to serve their minority and personal interests. Legal counsel is handling this situation. Three of these shareholders are threatening to put the company into involuntary bankruptcy. As Chairman of the Board, his fiduciary duty is to the majority of shareholders. If there are any questions, please contact corporate counsel, Cathy Elliott Jones in writing. This e-mail address is being protected from spambots. You need JavaScript enabled to view it The Chairman is actively managing the affairs of the Company today. Management will be sending out a monthly newsletter until the next Shareholder meeting which will be information only and is to be held in March 2012. At that time the activities of the company will be reviewed from past management to current activities including projections for the upcoming year and present the unveiling of the upgraded products for all to view. Financial statements will also be presented.
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