You should read the following discussion and analysis of our financial condition and plan of operations together with our financial statements and related notes appearing elsewhere in this Quarterly Report. Various statements have been made in this Quarterly Report on Form 10-Q that may constitute "forward-looking statements." Forward-looking statements may also be made in Competitive Companies, Inc.'s other reports filed with or furnished to the United States Securities and Exchange Commission (the "SEC") and in other documents. In addition, from time to time, Competitive Companies, Inc. ("CCI," "we," "us," "our," or the "Company") through its management may make oral forward-looking statements. The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from such statements. The most important facts that could prevent us from achieving our stated goals include, but are not limited to, the following:
(a) volatility or decline of our stock price;
(b) potential fluctuation in quarterly results;
(c) our failure of to earn revenues or profits;
(d) inadequate capital to continue or expand its business;
(e) insufficient revenues to cover operating costs;
(f) inability to raise additional capital or financing to implement its business
(g) dilution experienced by our shareholders in their ownership of the Company
and its subsidiaries because of the issuance of additional securities by us,
or the exercise of outstanding convertible securities;
(h) inability to complete research and development of our technology with little
or no current revenue;
(i) failure to further commercialize our technology or to make sales;
(j) loss of customers and reduction in demand for our products and services;
(k) rapid and significant changes in markets;
(l) technological innovations causing our technology to become obsolete;
(m) increased competition from existing competitors and new entrants in the
(n) litigation with or legal claims and allegations by outside parties, reducing
revenue and increasing costs;
(o) inability to start or acquire new businesses, or lack of success of new
businesses started or acquired by us, if any;
(p) failure of the Company to successfully spin off Wytec;
(q) failure to develop and implement a revenue model that will produce revenues
(r) inability to obtain patent or other protection for our proprietary
intellectual property, and the expiration of some of our existing patents
(s) uncollectible accounts and the need to incur expenses to collect amounts owed
to us; and
(t) we do not have an Audit Committee nor any independent directors.
There is no assurance that we will be profitable, we may not be able to successfully develop, manage or market our products and services, we may not be able to attract or retain qualified executives and technology personnel, we may not be able to obtain customers for our products or services or successfully compete, our products and services may become obsolete, government regulation may hinder our business, additional dilution in outstanding stock ownership may be incurred due to the issuance of more shares, warrants, and stock options, the exercise of outstanding warrants and stock options, or other risks inherent in our businesses. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The cautionary statements contained or referred to in this section should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this Form 10-Q, or to reflect the occurrence of unanticipated events.
Competitive Companies, Inc. (the "Company") was originally incorporated in the state of Nevada in October 2001 and acts as a holding company for its operating subsidiaries, Wytec International, Inc. ("Wytec"), Wylink, Inc., Wireless Wisconsin LLC, Capaciti Networks, Inc., Innovation Capital Management, Inc., and Innovation Capital Management LLC (collectively, the "Subsidiaries"). Capaciti Networks, Inc. is now a wholly owned subsidiary of Wytec. The Company and its Subsidiaries (also collectively referred to as "CCI") are involved in providing next generation fixed and mobile wireless broadband Internet services nationally and internationally to wholesale, retail and enterprise customers.
Due to developments in our intellectual property and the continued development of our municipal and governmental relationships along with the addition of key personnel and consultants, management intended to enter into 30 markets by year-end 2015. This strategy was redesigned to reduce market entry costs and enhance marketing capabilities along with the development of a commissioned based agent sales channel and telemarketing. Included in our market entry schedule are new products and services for small and medium businesses and our continued optimization strategies for assisting municipalities in leveraging current assets such as utility poles for maximum utilization related to the provisioning of telecommunications and machine to machine ("M2M") services.
Our current business strategy incorporates the use of millimeter wave technology utilizing wireless frequencies from 5GHz to 80GHz spectrum. Wytec has constructed the use of these spectrums in three (3) markets including San Antonio, Texas, Columbus, Ohio and Denver, Colorado and has commercialized a broadband Internet service directed to the small medium business (known as "SMB") in two of three markets. The initial focus of service is directed to highly concentrated areas such as the Central Business District ("CBD") of each market and to expand the service to high density business zones outside of the CBD. The Company plans to eventually utilize its patent pending LPN-16 Micro Cell technology to provide enhanced coverage to these zones.
We believe the use of millimeter wave spectrum is a key component to the development of a 5G network and further support to what has now become popularized as the "Smart City." Smart Cities are designed to advance multiple mobile communications services, including but not limited to, public safety, first responder, machine to machine, and carrier offload services.
Currently our network design is capable of delivering bandwidth services of up to 1.5 gigabits per second to a wide range of customers including small, midsize and large corporate operations located in Tier One, Tier Two, and Tier Three (the term "Tier" defines the population size of the link location) cities throughout the United States. Our millimeter wave technology serves as the backbone for our platform networks capable of supporting a host of high capacity data throughput objectives.
On December 18, 2015, Wytec performed an outside speed test on the first LPN-16 working prototype and produced record performance speeds in excess of 500 Mbps to a smart phone and 600 Mbps to a laptop computer. Earlier speed tests and network demonstrations enabled us, through Wytec, to consummate our first services agreement with the City of Columbus on July 7, 2014. Wytec has now substantially completed its footprint coverage of the CBD of Columbus, Ohio in preparation for the Company's new marketing and sales strategy.
Overview of Current Operations
We continue to shift our focus away from our past revenue sources, such as, web hosting, dial-up, wireless, DSL, and wired internet services, and move toward the design, development, and implementation of 4G/5G networks with an accelerated concentration towards the development of our "Smart City" concept. We believe recent national and international relationships have facilitated the progression of our "Smart City" development in conjunction with the growing relationships with city and state governments.