Labwire Inc (LBWR): Also, Dexter told me this to make sure I...

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creede

Re: partysasquatch post# 5725

Saturday, 05/10/2008 4:47:55 PM

Saturday, May 10, 2008 4:47:55 PM

Also, Dexter told me this to make sure I was clear. Labwire does not own the K-9 division. They may buy it at some time, but as of now, they manage them. All contracts are through Labwire. (I didn't ask him about the K-9's....he just wanted to be clear.)

You and I know this... but I want to make sure no one sees this the way some would like to paint it. Ironic as it sounds, the setup that they have is actually to protect Labwire and it's investors. Let's look at it again.

ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The Company outsources its K-9 security services to, Labwire Security, Inc., a company 50% owned by G. Dexter Morris, Labwire, Inc.’s Chairman of the Board and President. Labwire is paid a 5% commission for the K-9 security services that it refers to Labwire Security, Inc. The commissions received by the Company have been less than 1% of the Company’s gross revenues.

Alright, the first thing that everyone interested needs to know is that the K-9's were not an idea that was dreamed up by Dexter Morris. This service was conceived out of necessity. You see, Shell called Dexter and told them that they needed a way to provide K-9 security on the Mars Platform. Ever heard of it?

http://en.wikipedia.org/wiki/Mars_Tension-leg_Platform

Totally awesome. Anyway, at that time Labwire really only had 2 Fortune 500 Clients (Laidlaw/Greyhound and Shell), so when 1/2 your gross revenues calls for a favor, you figure out a way to make it happen - if you want to or not.

Ok, so now comes the point where you say "why not just let some other K-9 company handle it"? Because there was no other company doing it. Listen, you can't just drop a beat cop and his dog on a platform out in the middle of the ocean, and believe that they are going to be prepared for all they may face. No. These guys have to have special training for a special task.

HOUSTON, April 19, 2006 (PRIMEZONE) -- Labwire Inc. (Pink Sheets:LBWR), a leading Employee Screening Solutions Provider, announced today that the Company has been engaged to provide security services on a large offshore drilling platform damaged by hurricane Katrina.

In addition to providing state-of-the-art employee screening services via the leading edge Labwire Platform, the Company continues to offer canine surveillance and security services to chemical plants and refineries. The drilling platform, which is jointly owned by two large oil companies, is located in the Gulf of Mexico and will employ over 500 workers during the term of the rebuilding project. Labwire has been contracted to provide 24-hour patrol and security services. ``An operation of this magnitude requires competence, experience and dedication,' commented Dexter Morris, Labwire CEO. ``Our commitment to providing professional and timely customer service, safety and security in any situation continues to result in the expansion of our customer base, service offerings and revenue channels,' continued Mr. Morris. ``We are extremely pleased to have expanding service offerings in the security industry and the trust placed in us by these large oil companies. This project is large in scope and vital to the flow of oil and gas from this large platform in the Gulf.'

Ok, so they want to make their client happy, and perhaps expand into a new revenue stream. In that case, why not just put the K-9's inside of Labwire? Why? Because that would be a stupid thing to do. What does the business model for the k-9's have to do with low overhead, and high margins? Nothing. Even thought the idea was kinda parallel to the business plan, it was most definitely different. To do this requires all kinds of moving parts - dogs, people, salaries, trainers, SCUBA, and all the rest. No, Dexter would not put all that right into Labwire. The only thing to do was create a new company, and then figure out how in the world to get those dogs and people ready for action. And somehow they did.

Everyone starting to get the big picture? Dexter created a whole new company, and gave himself half ownership for the trouble. I believe the other half belongs to whoever owns the affiliate k9bombsearch.

HOUSTON, TX – July 27, 2005 – Labwire Inc. (OTC: LBWR), announces that the Company is currently offering and will be implementing canine bomb and drug detection services at local private schools in the greater Houston area. The canine units will be provided through an affiliate partnership with American K-9 Bomb Search of Houston, Texas.

Now let's talk about the terms for the relationship of Labwire the company, and the K-9 business. First of all, you would have to be a complete idiot to not like the terms of this deal! Labwire the corporation get's a 5% commission for the K-9 security services that it refers to Labwire Security, Inc. Get it? Labwire is guaranteed 5% of the revenue that comes in no matter if Labwire Security Services is profitable or not. That's like being promised a 5% margin with zero risk. Who would not take that? No matter what the numbers look like in the K-9's Labwire gets 5%. The checks are made out to Labwire, so they get their cut first. Also, and best of all, it protects the corporation from what might be a not so profitable idea. Just think, Labwire gets their money, and has to pay no overhead, no staffing, no anything - except maybe answer the phone from time to time when the Shell executives call to thank Dexter.

And that's the whole point. It's what Dexter was saying the first time I called him. He told me that DISA had about 500 clients, and that 90% of the revenue came from the top 18. He told me that when he left DISA he decided that they could have the top 482, because all he wanted from them was the 18. Totally brilliant. Fewer clients means lower overhead, and better customer service. Lower overhead means lower pricing. Better customer service means taking care of your customers in a way that can never be beat. So, ironically enough, at the end of the day, the K-9's are all about customer service, and the separate company is about protecting Labwire and it's shareholders!

GodBless - NoDoubt - creede

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