Has everyone seen this? I just emailed Steve and to have 218m x .0036 = $750k market value is a steal at these levels. This will be back over .01 by NADA...
TO: All Shareholders
FROM: Steven E. Humphries
RE: 2007 Update
DATE: December 31, 2007
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When I took over the Company as President in April 2006, there were many serious operating and financial issues facing the organization as a whole (Stronghold Technologies, Inc. a Nevada Corporation - the Parent Public Company) and its Operating Company, Stronghold Technologies, Inc. (a New Jersey Corporation) as follows:
Under previous management, many law suits involving former employees, vendors and customers were allowed to be reduced to default judgments against the operating company due to management's failure to retain the necessary legal representation to defend the actions. Additionally the operating company owed hundreds of thousands of dollars to the Internal Revenue Service for back withholding taxes.
The technology developed and used by the Company's customer base was antiquated and the Company was losing customers on a monthly basis.
Sales were virtually non-existent, due to the antiquated product and due to the fact that the CRM competitive marketplace had changed dramatically with the introduction of web based products.
The Company was in default of its financing agreements and in danger of foreclosure.
The first order of business was to address the legal issues facing the Operating Company. We retained legal counsel and consultants to provide advice with regard to those issues. It was at that time that we felt it was necessary to isolate the Parent Company from the stigma surrounding the Operating Company. In October 2006, the Parent Company became DealerAdvance, Inc. Subsequently in January 2007 the Company filed a Chapter 7 Bankruptcy petition in the North Texas district on behalf of Stronghold Technologies, Inc (the New Jersey Corporation). The Bankruptcy, when discharged will eliminate over $1.0 million in judgments, liens, etc. However, the debt from our lender group remains with the Parent Company.
In July of 2006 I hired Rajneesh Sharma as our Chief Information Officer. His mission was to hire a development team and move the antiquated server based product to the web.
I also hired a new sales team with the primary goal of stabilizing the Company's customer base and resolving technical issues.
We developed a new business plan that we presented to our investor group, which allowed the Company to secure funding for 2007.
In February of 2007, with great enthusiasm introduced our new WebDA product at the NADA Convention and Exposition in Las Vegas. While dealer reaction was extremely encouraging, our web based developed product was simply one of many CRM's offering a web-based solution. Despite the highly competitive CRM industry, the Company was able to begin securing new contracts with the first signed in May, which was the first business the Company signed in nearly 18 months. In 2007 we were successful in converting a large amount of our customer base to the new WebDa representing approximately $900,000 sales bookings.
In June we made the decision to return to the "hand-held" technology that originally set the Company apart from the other CRM companies. At that time we began developing a hand-held application for the new WebDA product. In November we were successful in developing an interface with the Nokia 770 (now the 800), which would allow the full application to be operated on wireless hand-held device.
DealerAdvance, Inc. will debut this new product at the NADA Convention and Exposition in February 2008. We feel that due to the hand-held technology, the new WebDa will have huge success at the upcoming Convention.
We have also restructured our national sales team that is now in place to facilitate the launch of the new WebDA product.
In 2008 we have two primary goals. One, to become profitable and two, to acquire a cash positive company in the automotive space that compliments WebDa.
If we are able to secure 150 new WebDA clients in 2008, the Company will experience profitability. Additionally, if we are able to acquire a complimentary, cash-positive company, that covers the existing monthly loses, we could experience immediate profitability. We are aggressively pursuing both avenues to profitability.
As of December 21, 2007, there were 8 billion shares authorized and 218,274,915 issued and outstanding. The Company's lender continues to convert its debt to equity as they continue to fund our monthly operating loses.
Thank you for your continued support as we look forward to a great 2008!
DealerAdvance, Inc. (www.dealeradvance.com) is an innovator in applying technology and the Internet along with process improvement methods to increase business efficiency and sales. The Company has developed an integrated technology called WebDA(TM) which, among many features, allows automobile dealers to capture a customer's purchasing requirements, customers and dealerships personnel to search inventory at multiple locations, locate an appropriate vehicle in stock and print out the necessary forms. Through an integrated CRM (Customer Relationship Management) application, the system sends detailed tasks for prospect and customer follow-up and produces management reports to measure compliance. DealerAdvance(TM) allows sales professionals to increase sales, improve customer follow-up, and reduce administrative costs.
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The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 ("the Securities Act"), as amended and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, the our statements regarding the anticipated growth in the markets for the our technologies, the continued development of our products, the approval of the our Patent Applications, the successful implementation of the our sales and marketing strategies, the anticipated longer term growth of our business, and the timing of the projects and trends in future operating performance are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of revenues due to the uncertainty of market acceptance and the timing and completion of pilot project analysis, and other factors, including general economic conditions, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this filing and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
