Dear Mr. xxx :
Thank you for your recent correspondence and important questions.
Hopefully, I can satisfactorily answer your questions and point you to the best source of publicly disclosed information.
Epicus Communications' ("Epicus") most recent quarterly financial report was filed with the Securities and Exchange Commission ("SEC") (www.sec.gov) in January 2008 for the quarterly period ending November 30, 2007. Please review information from this periodic report and other filings by clicking here.
In regards to your first question, Epicus had approximately $65,000 in cash on hand as of its last financial report. Additionally, Epicus had approximately $326,000 in accounts receivable.
Note, loss from continuing operations for the most recent quarter was $447,309.
Available cash of $65,000 is likely not adequate to continue operations, if we presume losses from continuing operations will remain near last quarter's figures.
Also, Epicus' balance sheet indicates Epicus has significant current liabilities, experiences on-going costs associated with operating its public company (e.g. accounting, legal and financial), and has very limited revenues from Epicus' Voice Over IP (VoIP) business.
As of this writing, Epicus has not provided guidance to investors about its expected earnings this quarter (i.e. Q3 2008).
As such, Epicus is highly dependent on its ability to collect on the above referenced account receivables and/or secure new financing from institutional lenders.
In regards to your second question, we cannot make statements about future events, until first publicly announced in a news release or report filings with the SEC.
GlobalNet Corporation and Epicus share similarities and differences, both are outside the scope of this response due to various complexities surrounding each company. I suggest you consult with a registered financial adviser when evaluating investment considerations.
Pertaining to your third question, Epicus has neither received cash nor obtained debt assumption from any entity for the discontinuation of its traditional land-line business. Rather, Epicus recognized a charge to operations.
In regards to questions 4-5, management believes VoIP services for business and residential customers represents the best option available for creating value for its shareholders and improving investor confidence.
Epicus cannot provide guarantees it will be successful in transitioning to its new business model. As a shareholder, significant risks exist to your investment and you should review Epicus' risk statements outlined in its SEC reports.
Capitalization information is partially disclosed in proxy statements and annual reports (10-KSB) in a table format. This information is also reported in Section 16 filings. Some information is considered non-public and goes unreleased.
No executives or directors have bought shares in the open market in 2007. Investment considerations are individually made by each person.
Epicus does not control the secondary trading of its common stock. Market makers facilitate day-to-day trading. Investments considerations are determined by shareholders themselves.
The SEC is tasked with enforcing trading rules not issuer companies.
No venture capital firms are currently represented on Epicus' board of directors. Mark Schaftlein, CEO, is the sole board member.
Insiders (e.g. officers, executives, and 5%+ holders) are required to file Section 16 filings (e.g. Forms 3,4,5) with the SEC when they buy or sell shares of common stock. For one recent example, please click here.
As of January 11, 2008, 228,774,164 common shares were issued and outstanding. As such, a shareholder would need approximately 11.4 million shares to be a 5% holder.
There were no grants of stock options made during either Fiscal 2007
or Fiscal 2006 to executive officers and/or directors. No new compensation plans have been announced at this time.
Note, 3.3 million stock purchase warrants exist at $.03. Additionally, Epicus has $11.4 million in convertible secured debt, which could convert to common stock at a large discount to the current common share price resulting in significant dilution to existing common shareholders.
Note, Epicus will likely attempt to continue to raise funds with similar highly dilutive, debt instruments due to its operating losses, which could cause future dilution to existing shareholders.
Epicus Communications Group, Inc. is committed to providing investors with the highest level of shareholder service. If you have questions, please contact me, Monday-Friday, between 9:00 AM-5:30 PM EST, at 888-746-5440.
Sincerely,
Epicus Communications Group, Inc.
Gil Sharell, Investor Relations
