Response to Investors Questions
“What are the revenue forecasts for Wialan in the upcoming quarters of 2014?”
The revenue forecast for the second quarter is almost three times last quarter, based upon the sale and installation of Wialan Technologies wireless access equipment at five (5) specific customer locations. Wialan’s cost of sales for the deployment of its equipment at customer locations is significantly less than our competition. Therefore, we anticipate improving our cash position each month with significant increases in cash flow for expansion and operations.
We anticipate sales of at least $250,000 in each of the third and fourth quarters based upon anticipated closing of ten (10) distinct customer locations each quarter. These anticipated sales locations are already being negotiated with anticipated closings during the third and fourth quarters of 2014.
“How is Wialan managing its overhead costs with respect to its current revenue?”
Currently, Wialan Technologies pays non-management salaries of less than $20,000 per month, including salaries payable to engineers, sales associates and secretarial personnel. Ongoing research and development (R&D) projects are paid for through current expenses items already included in Wialan’s balance sheet statements.
Management expense is currently paid for through existing revenue. Wialan does not currently use stock allocations for retention of management or key employees at this time but may do so in the future.
“How is Wialan going to prevent share dumping by insiders when the 144 restrictions are removed in September 2014?”
Management is currently negotiating a freeze of 95% or more of all outstanding stock held by insiders/management and other stockholders owning more than 5% of the company shares. As a company Wialan Technologies shares in the concern with its investors that large stock sales will undermine the value of our stock. Thus far, we have obtained oral agreements from all insiders/management personnel to enter into such an agreement.
“What are the specific Wialan products being marketed in the Brazilian market?”
The specific product being tested in Brazil is the Wialan Technologies, Inc access points that will create Wi Fi hotspots to outdoor stadiums, government offices and schools. Wialan is in the process of getting its wireless products certified by the Brazilian regulatory body, ANATEL. To meet requirements in that market, Wialan is finalizing modifications to its products that would allow it to operate in additional 5.4 GHz to 5.7 GHz frequencies that are permitted for commercial use in Brazil. While business development and operations are pending receipt of the regulatory approval, Brazil remains a promising market for Wialan.
“What is the status of the Hughes Satellite projects discussed in previous press releases?”
Hughes Networks has never been discussed in press releases, although Wialan has had in its possession a contract from Hughes Networks for satellite internet deployment in the Dominican Republic since November 2013 but has been postponed to execute such contracts until a successful testing of equipment in that country. Wialan is schedule to start a beta test of its equipment with the first school, utilizing the Hughes Satellite deployment in the week of the 15th to the 21th of June. After a successful beta testing of this equipment in the Dominican Republic and approval of the government for hundreds of other rural schools, this contract will be executed by Wialan in order to move forward with the satellite internet deployment by Wialan in that country.
Similar contracts have been presented to Wialan by Hughes Satellite for the distribution of satellite internet services to the Bahamas with a beta test for this satellite delivery set for July 2014.
With respect to our previous communications regarding joint venture projects, the following is a summary of current projects:
WEWS: The WEWS (Early Warning System) is set for testing by June 25, 2014 at Clearwater Beach, Florida based upon our discussions with the Park Safety managers for that city. We expect to deploy four (4) Wialan Technology access points as well as four (4) HD cameras and the outdoor communications speaker system at Clearwater Beach, FL by that date.
We are currently negotiating a Wi Fi/HD surveillance camera deployment in Florida as well as throughout the United States. We are also negotiating with other municipal governments in Florida for further demonstration of the WEWS concept. We intend to install demonstration units in at least two (2) additional beach communities by the middle of the third quarter 2014.
Bahamas/Panama: We are currently negotiating a large scale Wi Fi/HD surveillance camera deployment in The Bahamas as well as in Panama. We expect that approvals for this project to occur in the third quarter of 2014.
Marinas: We just successfully installed a Wi Fi/Camera Surveillance network at the Belle Harbor Marina in Clearwater Beach, Fl. In addition, Wialan just successfully installed additional Wi Fi network solutions at the Galleon Resort in Key West, Fl. Wialan through its Wi Fidelity, LLC partnership is currently engaged in negotiating for the installation of a Wi Fi/Camera Surveillance platform at the Dunedin Marina in Dunedin, Florida. Wialan expects that a contract for installation and actual installation will take place in the third quarter of 2014. Wialan has just recently hired two additional marketing executives to ramp up the marina marketing sales effort. Additional sales professionals will be retained in the third quarter of 2014 by Wialan and its partners, Wi Fidelity in order to continue to add marina customers to our customer base.
Clearwater Aquarium: Wialan through its Wi Fidelity, LLC partnership is engaged in the negotiation of a Wi Fi/Camera surveillance install at the world famous Clearwater Marine Aquarium. Wialan expects that a contract will be executed and Wialan equipment will be installed in the third quarter of 2014.
“What is the status of finding a permanent CEO for the company?”
Wialan is currently interviewing two (2) individuals from the technology world who share Wialan’s vision of creating a world-wide “Wi Fi Cloud” to provide wireless internet services as well as VOIP phone systems and video on demand services to our customers. Wialan is hopeful that the current interview process will provide the company with a permanent CEO by the end of June 2014.
“How is Wialan going to create a more effective communication strategy with its investors?”
Wialan does anticipate creating a more vigorous dialogue with investors through monthly press release communications as well as through monthly updates on its website about current events. Wialan will also continue to answer shareholder questions in this same fashion every couple months.
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