The Securities and Exchange Commission

[thepennyking]

Skyway Communications Holdings, Inc

OTC- BULLETIN BOARD SYMBOL SWYC

Corporate Headquarters:

6021 — 142nd Avenue North
Clearwater, FL 33760

727.535.8211


[e-mail]



The Ones Responsible

Officers and Directors and Significant Players

Brent Kovar

Glenn Kovar

Joy Kovar

James Kent





SEC FILINGS

Some Basic Facts - as of January 31, 2004

Common Shares outstanding (March 9, 2004) - 124,701,669

FULLY DILUTED AFTER CONVERSION OF PREFERRED SHARES INTO

351,998,000 shares of common - 476,699,669*

Total Assets December 31, 2003- $4,881,565 (unaudited)



Total Liabilities - $2,554,308


Revenues for year ending 1/31/2004 $15,398 (also revenues since inception)



Total Net Loss from continuing operations for 9 months ended 1/31/04 -

$13,326,597


Accumulated Deficit from April 2002 - $14,608,290



Stock price when report was published $.80

Market capitalization $99,761,335

Market Capitalization fully diluted $381,359,735

Date Complaint filed: March 25, 2004

Filed with: Enforcement Division of the SEC, Washington and Florida

Known actions to date - None

2 APRIL 2004 - Our-Street.com been contacted by a former high level employee of Satellite Access Systems (Kovar's former company) who, after reading our report, concluded that the Kovars were up to the same misdeeds as they witnessed with Satellite Access Systems. Those misdeeds included some of the following more disturbing events.

1. The Kovars took millions of investor dollars without generating any meaningful income and enjoyed extravagant lifestyles while failing to pay employees in a timely fashion. This included throwing a $20,000 New Years party at Brent's expensive executive home while continuing to fail to pay employees. (Brent lives in a luxury executive home most of us can only dream about and it is funded entirely by investor dollars).

2. Demonstrations of SAS technology were faked by Brent. On one occasion, while moving a computer, a "critical" hardwired component was ripped from the computer and Brent simply instructed the employee to reinsert the broken connection and proceeded to conduct a demonstration that would have been impossible under the circumstances.

3. When conducting a demonstration of the satellite link between the demo room and his receptionist who was on camera, Brent secretly instructed his receptionist to pause three seconds after hearing the speaker to give the impression there was a time delay due to satellite distances.

4. Contracts were specifically drawn to enable SAS to take huge "stand still" deposits from customers yet not require delivery of services and still allow retention of deposits. (this supports statements by Net Command Tech regarding all customers of SAS and the Kovars demanding their money back for failure to perform).

5. Our contact also stated clearly that Brent Kovar is the brains behind the outfit and that he is the most capable con man our whistleblower personally has ever witnessed. "He could sell ice to Eskimo's".

6. Brent not only took money from investors, he also talked his relatives out of money as well and they too ended up losing investments they could hardly afford to lose.

Generally speaking this highly placed whistleblower spoke of Brent, Glenn and Joy's conning everyone from family and friends to investors to companies out of millions of dollars and spending that money in helping support the con with impressive offices and demo rooms while enjoying extravagant lifestyles at the expense of the investors. All this was pulled off while NEVER delivering a single product. Our whistleblower compared Brent to a skilled magician as he staged mock demonstrations and took non-refundable deposits then failed at every instance to deliver the promised technology.

OUR COMPLAINT

Sometimes a story almost too strange to the point where you wonder how people believe it to begin with. Such is the case with the Kovar family's latest venture, Skyway Communications Holdings, Inc.



Here is a family that has been working different versions of the same type story with the public since at least 1996 and still seems to be able to find willing believers. The premise is simple. "Invent" a product with remarkable capabilities. Also invent a great story to go along with the "product" and be really good at telling the press and others about it so you can convince others to invest in you and the product. (Keep in mind, when we say "invent" we mean that in the broadest terms possible). Keep this up as long as you can and make sure you pay yourself and your family well along the way. When the story falls apart, invent a new product or recycle the old one in a different package and repeat the process.



The head of this family, Papa Glenn Kovar's history as a man who makes materially false and/or misleading statements to get what he wants goes back even further beginning with his lies on a job application to get a position with a Redevelopment Agency from which he was subsequently fired when the lies were exposed.



Actually, our story starts in the late 1980's. Around that time Glen was getting fired for his "creative resume" work. Also around the same time another apparent turning point for the Kovar family occurred. Glenn tells you of a poignant father/son moment aboard a sail boat in 1987 in the Virgin Islands, where Glenn and Brent began wondering about the opportunities in the satellite and related businesses. We don't know if this moment came before or after Glen was fired from the Redevelopment Agency but with Glenn being out of work and fresh from this magical moment, Glen and Brent experienced the genesis, the inspiration for their first recorded commercial father and son project, Satellite Access Systems (SAS).



This is the first evidence we have of Brent and his dad teaming up on a project. Now, when it comes to getting caught in a lie as Glenn did, some people learn their lessons and change or even commit themselves to atoning for their past mistakes while others just keep on keeping on. That appears to be the case with Glenn because his misstatements didn't stop after the resume lie/firing incident. There are so many misstatements in the article about his formation of SAS that we are reluctant to list them all on this page. Instead, we have listed some as additions to the article itself.

Tampa Bay Business Journal article



Although Glenn credits Brent with being the "genius", it is obvious where Brent got his education when it comes to outrageous promotional claims. We can see this in their first venture together, Satellite Access Systems. Although Glenn is the one taking the lead in the news story and bragging about their mysterious "black box", Brent, at age 29 does "yeoman's duty" in helping carry the promotional load by making his own grandiose claims. For example, when Glenn tossed up the claim that they just were signing a contract with an AOL subsidiary, Brent hit it over the fence by adding that the contract could "blossom into well over $500 million."



It was only after realizing how badly he had been scammed, that the reporter who wrote the initial SAS story came back and filed a follow up story not only on Glenn's resume problems but on several of the other lies told to him as well.



It isn't often you see a follow up story by a reporter where the reporter actually goes back and attempts to correct a snow job he had gotten previously. We commend the reporter on his vigilance and note this must have been a better than average snow job to cause this kind of reaction.



From here we don't find much on the Kovar's and their so called "black box" technology and inch wide satellite dishes until two and a half years later in April 1999, when Corsaire Snowboard Inc announced the acquisition of SAS and the changing of their name to Net Command Tech, Inc. (OTCBB: NCDT now pink sheets). Here is what they thought they were acquiring.



According to NCDT, the Kovars were involved in the "development of ultra high speed satellite and Internet communications for the transmission of voice, date and video signals; technology"



Somehow the Kovar's managed to talk the folks controlling NCDT out of about $3 million in cash in addition to debt assumption and a bunch of stock without ever confirming the existence or effectiveness of their alleged technology.



Were not quite sure how these things happen but we got this information from NCDT SEC filings (see link below). We find additional credibility in these particular disclosures due to the fact that about 60 days after the announcement of the SAS acquisition and right about the same time as the acquisition of SAS was closing, the SEC stepped in and suspended trading in NCDT stock while requesting information on, among other things, their recent acquisitions and claims surrounding the acquired company's technology and claimed income.



There are some pretty troubling claims in these filings and we suggest anyone with an interest in Skyway Communications, read this information thoroughly.

NCDT FILING



Here is just a sample of what you are going to find.



"However, SAS had not successfully delivered contracted services or technologies under these contracts. In addition, as discussed in Note 9, substantially all counterparties to SAS's contracts have made claims for return of the customers' advance deposits and other damages."



Bottom line here is simple; amazing claims about technologies were made but not delivered by Glenn Kovar and Brent Kovar while sucking money out of the investor's pockets.



Fast forward again to today and the latest venture of the Kovar family, Skyway Communications Holdings. Through this company and its subsidiaries, they are once again promoting some amazing technology with outrageous claims both in their press releases and on their website and people are buying the story. Here are some of the claims:



"While all commercial airlines currently provide some limited In-Flight Entertainment (IFE) and communication services, these systems currently rely on data transfer systems that are inferior in reliability and speed when compared to Sky Way Aircraft’s system. Sky Way Aircraft has the ability to provide data link technology that will dramatically increase IFE connection speed and capability."



BUT WAIT!



In their most recent 10Q filed on March 16, 2004 they clearly state, All of our products and services are in the development stage and will require additional testing.



The obvious question here is

How can these two statements exist when referring to one technology?

It appears to us that Skyway simply hopes to someday have the ability to provide these services.



And



How in the world can they claim superior reliability when they haven't even finished installing the first working model which will decide if the technology even works? This it a total fabrication.. a lie... a deception.. a con... "masculine bovine exhaust" at its best.



Section 10b-5 of the Exchange Act prohibits a person from making materially false and/or misleading statements in relation to the sale of stock and we believe that SWYC's claims on their website as stated above are clearly false and/or misleading.



We have another problem with Kovar's claims about his technology. This has to do with how he describes it in his SEC filings. In his most recent 10Q, Kovar refers to his technology this way.



"Sky Way Aircraft, a division of Sky Way Communications Holding Corp. was formed to utilize now-patented wireless data transmission software technology developed by Mr. Brent Kovar, our President. This technology is a software program for data indexing, which is similar to data compression but which mitigates data loss problems associated with compression. This technology permits faster and less expensive transmission of data, video, voice and audio between the ground and an airplane or other homeland security related ground locations than using traditional, non-indexed data transmission mechanisms"



However, when we look at the patent itself, the first sentence of the abstract clearly says,



"A system for increasing the transmission bandwidth of a terrestrial digital network". Additionally, the patent says nothing at all about cost effectiveness. More masculine bovine exhaust!



Again we find contradictions between representation and fact. And for those who might want to say, "but the technology can be used for wireless", we say SO WHAT? Disclosure is about accuracy and truth and the truth is that Brent Kovar's patent, IF IT EVEN WORKS, was designed for terrestrial digital networks. In his patent, Kovar even goes futher to make the distinction between satellite and wireless transmissions and the more traditional "terrestrial networks" such as phone lines.



Given this fact, how can Kovar then file a disclosure document with the SEC and call his technology a "wireless data transmission software technology"?



It is a violation of Securities Law to knowingly file false information with the SEC and, in our opinion, the claim that Brent's patent is for wireless data transmission software, is materially false and/or misleading.



Basically, this is what we see going on with the "technology". The Kovars, through SWYC, have acquired the old AT&T in-flight tower phone system for the US. This is the system that AT&T essentially abandoned when it got out of the in-flight phone business. Now, they are attempting to upgrade this system to support their claim of being able to transmit data at a rate of 15,000,000 bits per second". According to their own charts, the system they acquired from AT&T, an "in flight phone system" was only equipped to transmit data at a rate of 2,400 bits per second. Skyway does not disclose exactly what is required to upgrade their system from 2,400 bps to 15,000,000 bps but we think this is the kind of information that should be clearly and fully disclosed both in terms of cost and time.



This use of bits per second alone is quite misleading, in our opinion. The industry simply doesn't measure data transmission in bits per second anymore. A bit is the smallest form of data one can transmit. Data transmission today is measured in terms of kilobits, megabits per second (Mbps) and not bits per second.



Accordingly, the data transmission rate being claimed by Skyway is 15 Mbps or 15 Megabits per second. By comparison a typical T1 internet connection transfers data at a rate of around 1.5 Mbps. So, according to Skyway, they have developed their own technology for transmitting data back and forth between an airplane and a ground tower about 10 times faster than a T1 connection by using their software designed for terrestrial network systems and not by using other state of the art compression technologies or hardware thus allowing them that speed on both the up and down link.



Given the historical facts of the Satellite Access Systems promotion and eventual demise added to the apparent inconsistencies already in evidence, we find Mr. Kovar's latest claims about this technology to be highly questionable at best. We have written the company and asked for some documentation of their claims and have not received a reply. We will advise you if we get any additional information.



Adding to our concerns regarding the technology and the credibility of the Kovars and Skyway Communications, is evidence we are receiving regarding the relationship between Southeast Airlines and Skyway. According to Skyway, Southeast Airlines initially entered into a Letter of Intent in July and then

"signed a SkyWay in-flight system contract for a wide variety of in-flight services. Under the contract, Southeast Airlines shall receive, on a reoccurring basis, a percentage of the revenue generated by advertising and in-flight service usage of the system. Terms of the contract call for the installation of the Upgraded SkyWay in-flight system on the fleet of Southeast Airlines eight (8) MD-80 and DC-9 aircraft."

This understanding is not shared by Scott Bacon, a VP for Southeast Airlines. According to reliable sources who have spoken with Mr. Bacon, there is no formal contract with Skyway Communications or any of its subsidiaries. According to Mr. Bacon,

1. There is no "formal contract" with Skyway Communications or any subsidiary.

2. They do have what amounts to an agreement that is more like a letter of intent based upon numerous conditions gs, among them

a. Proof that the technology works

b. All required FAA certifications

c. Inspection and working demonstration of a fully installed and complete working model



3. Once Southeast has had an opportunity to see the product in action and can confirm its functionality and that both the airplane and Skyway have the proper certifications from the FAA, then they will "look at it" to determine if they want it.



4. It is way too early in the process to determine if anything will come from the relationship.



5. In the interim Southeast continues to investigate other options including but not limited to the Verizon technology which uses existing installed hardware. They also have been in discussion with other airlines. This is an active subject of investigation for Southeast out of a commitment to be competitive while Skyway continues to fail to deliver requested documentation.



Recent developments also concern us. We called Southeast Airlines to personally speak further with Mr. Bacon about this subject and were told by the operator at Southeast that Skyway had called and instructed her to refer any further calls regarding their relationship with Southeast Airlines to Steve Kline, the IR representative for Skyway. We find this action both troubling and inappropriate. We have written Mr. Bacon and asked him to comment and will let you know if he replies.



ADVERTISING CONTRACTS?



We also have serious concerns about the accuracy of certain press releases referring to advertising contracts between Skyway and commercial organizations in the Florida area.



On October 2, 2003, Skyway issued a press release announcing that

"SkyWay Communications Holding Corp. its wholly owned subsidiary, Sky Way Aircraft Inc., and Mavilo Jewelry Company of Tampa, Fl. announces their new Southeast Airlines 12 week In-Flight advertising contract valued at $75,000. The contract is scheduled to commence Spring 2004.

As previously announced in the original press release of August 29, 2003, SkyWay and Southeast Airlines signed an in-flight services contract whereby SkyWay would provide a wide variety of in-flight services to Southeast Airlines. A significant part of these services were the advertising of local Tampa Bay and other businesses and info-commercials that would be tailored to specific destinations of the Southeast Airlines flight schedule. The contract with Mavilo Jewelry Company, an import diamond and fine jewelry company located in Tampa, provides for a 12 week ad coverage on Southeast Airlines scheduled flights, between St. Petersburg., Ft. Lauderdale, and Orlando, Fl. Allentown, Pa, Newburg, NY, and Newark, NJ.

We contacted Mavilo Wholesalers in Tampa Florida, a respected jewelry company and asked them to confirm the contract with Sky Way Aircraft. When we informed the receptionist we needed to talk to someone who would know about advertising contracts, we were put in touch with Maria in their business office. We introduced ourselves and told her we were researching Skyway Aircraft and Skyway Communications and wanted to confirm the existence of an advertising contract between Mavilo and Skyway and she replied

"I’ve never heard of them."

Question; You’ve never heard of them?

Answer; "If we had, I would know about it."

Question: You would think if it was for $75,000…..

Answer: "[Laughs] – Yeah, I think I would know about it."

We also looked at the two press releases regarding contracts with automobile dealerships. One claims that Dew Cadillac entered into an advertising contract valued at over $200,000 and the other claimed to have made a deal with a West/Central Florida Bentley dealership. Surprisingly enough Dew Cadillac is a part of the Dimmitt Luxury Automobile Group as is Dimmitt Cadillac, the only Bentley dealer in West/Central Florida.

We have spoken with both the marketing department for Dimmit Luxury Automobile Group and with the General Manager of Dew Cadillac. Originally, Tracy Peterson, in the marketing department, indicated "I can't confirm this..... We're not doing anything like that". We offered to send her a link to the press release and she confirmed her willingness to follow up her statements with an email. We subsequently received an email from her referring us instead to Scott Larguier, the General Manager of Dew Cadillac.

We then spoke with Scott at Dew Cadillac and he refused to comment any further indicating that they were not in the habit of discussing their advertising relationships and weren't familiar with Our-Street.com. When we explained to them that Skyway stock was being publicly promoted using the Dew name already as well as the $200,000 figure, he didn't feel this was sufficient to change his mind. We then invited him to visit our website and to review the work we do and then decide further if he wanted to provide more information. To date, we have not heard further from him. We can only hope that, should the SEC inquire of them, that they will have more success with Dew Cadillac than we did.

We think it is important to note here that these press releases announce contracts "valued at" various figures. This should indicate the value to Skyway but understanding deceptive promotional tactics, we are fully aware of the fact that this can also be used to describe the value to the advertising customer as in "we can let you have this advertising package valued at over $200,000 today for the incredibly low price of only $xxx". Who of us haven't had the opportunity to purchase something from a TV pitchman that represents an $820 value for only $69.95?

Time alone will tell us what the actual truth is with deal with Dew Cadillac and the Dimmitt Luxury Automobile Group but as far as we are concerned, we are terribly disappointed in the Dimmitt group because, in the world of stock promotions, if you are involved as Dew Cadillac is, and you aren't part of the solution, you are part of the problem. We would expect this from an old style bait and switch Motor's Holding type store from the 70's but not a Cadillac and Bentley dealership. Oh, well.. no accounting for ethics.

Now for something really stupid!

(And really, really wrong too!)

In our opinion, Brent Kovar holds the investing public in very low regard. In fact, we get the feeling he thinks most of you are total idiots. We have reached this conclusion based upon a picture Brent has added to the monitoring page of his technology overview page. Here he has added a picture of a high-tech room full of monitors and work stations. On the wall of this obviously state of the art looking room, in the center of all the monitors, is the Skyway Aircraft Logo.

http://our-street.com/featured.htm