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Open Letter from Spectacular Solar CEO to Shareholders
Rahway, NJ, June 29, 2021 – Spectacular Solar, Inc. (OTCPK: SPSO), has to released the
following corporate update in the form of an open letter from CEO Doug Heck to all
stakeholders:
Dear Spectacular Solar Shareholders,
I apologize that I have been unable to communicate with you. On the advice of outside
securities counsel, it was suggested that we cease communication with shareholders until we
could sort out several issues which were uncovered with the financial reports.
As CEO of this public company, the buck stops with me. While I have a fiduciary responsibility to
you, the shareholders, to oversee each department of the Company, there were some issues
within the Accounting Department, including issues with personnel, software and accounting
policies and procedures, which I did not have an understanding of. I take my responsibility as
CEO and my fiduciary duties to you very seriously and I am truly sorry for this lack of oversight
on my part.
While going through the audit process, the pre-audit firm uncovered a number of issues with the
previous financial records. While there was nothing nefarious found, the numbers that are being
reported on Wednesday, June 30, are significantly different from what had been previously
posted.
The good news is that the soon to be posted numbers are accurate, the company is recovering
from the fallout from the pandemic and I now have the right personnel and procedures within the
Accounting Department to track every dollar that comes in and goes out of your company.
For quite a few months, we have been peeling back the layers to figure out what happened and
why it happened.
First, I will take ownership of not having the proper personnel in place prior to the merger. The
lack of a Chief Financial Officer was a huge misstep on my part. Much of what we found would
have been avoided had I brought on a qualified CFO to guide me through the merger process
and with the proper booking of projects and revenue.
Secondly, I regret that I did not immediately upgrade accounting software to a more robust
product that could handle the demands of a public company. Hindsight being what it is, I should
have switched the accounting software package even when the company was private. The
issue that was missed was that the software inadvertently added almost $2 million in extra cash
on the cash flow statements for Q2 and Q3 of 2019. The beginning cash from one period did not
match the ending cash from the prior period. It was missed by everybody but at the end of the
day, I know I am ultimately responsible.
Finally, I apologize for not having better oversight of the bank accounts from a reconciling
standpoint. Due to the high volume of projects and significantly large dollar amounts coming and
going out, I did not fully comprehend the cash flow numbers that were reported. Clearly it was a
tremendous error in judgment on my part.
So where do we go from here?
Firstly, we have hired a CPA who is highly qualified to be our CFO and he has been kind enough
to consult with us over the past several months. This gentleman made it quite clear that he
would not come on board as the official CFO unless he was confident that new financial reports
were accurate, he had complete control of expenditures and that he had confidence that the
company could be successful. I am pleased to announce that Mr. Al Francesco will be joining
the company as CFO on July 5.
While it initially appeared that the pandemic had not taken an extreme toll on our contracts, as
time went on, it was clearly not the case. Many of our clients are manufacturers and suffered
significant losses and their focus became survival, not adding solar. However, we are working
with our clients to rebuild these contracts, we are working with new leads to build to enable
Spectacular Solar to reach sustainable profit margins.
Now that this quiet period is officially over, you can count on receiving regular updates from the
company. We will resume disseminating the annual shareholder letter on February 3, 2022 and I
believe you will be pleased with our recovery as a company.
I am hoping that the brutal honesty of this letter shows how committed I am to regaining the
trust of the shareholders of Spectacular Solar. I promise to be better and do better as your CEO.
Sincerely,
Doug Heck, CEO
