for new investors...or i should say day traders
MARK SWANK RESPONSE
Mon 9/14/2009 1:09 PM
From: Mark Swank [mswank@sei-holdings.com]
To: XXXXX
Mr. XXXXX, I am sorry for the delay in all your questions. I wanted to answer all of them for you.
1) What approximate time frame did Mayer, Hoffman, McCann, P.C. give to Swank Enterprises in regards to when the analysis of the businesses of Swank Enterprises be completed?
Mayer Hoffman did not provide a set time frame, since they were not familiar with the books and records of the various entities, which they were engaged to consolidate and analyze. We expect them to complete the analysis by September 30, 2009, but the time frame depends on their ability to do a thorough analysis and complete the quality of earnings report.
2) What approximate time frame did Tatum, LLC give to Swank enterprises in regards to the completion of the financial audits of the businesses of Swank Enterprises?
To clarify, Tatum is preparing the financial statements for an audit, which will then be conducted by SARS’ independent auditor. Tatum is essentially working in tandem with Mayer Hoffman, so we expect them to complete the books and records roughly within the same time frame.
3)When the analysis and the audits are completed, will Swank Enterprises seek to up list the company to a higher exchange or does the company have any plans or have they considered?
SARS intends to list the combined entities on a higher exchange. The rules of both the Over-the-Counter Bulletin Board and the major exchanges require at minimum one year of timely filing prior to the date of the application. “Timely” is defined as having filed all periodic filings on time during that period. Therefore, SARS won’t have an opportunity to move up until (i) SARS becomes current in its filings and (ii) remains “timely” for a period of 12 consecutive months.
4)Does the company have plans for a Reverse Split of the company stock or any other plans to reduce the number of shares in the company?
Note that the current agreement, in which SARS acquired the Swank related companies, contemplates a reverse split, subsequent to financing. That agreement was filed with a Form 8-K on EDGAR on June 3, 2009, with an amendment filed on July 9, 2009, and estimates a post reverse-split capitalization of approximately 50 million shares. We’re aware that a reverse split may have a negative effect on the price per share, but the Company needs to weigh that against its long term, strategic growth. SARS will provide the required public notice as to any recapitalization, probably in a Schedule 14C or 14A, and perhaps in a general press release.
5)Does the company have an in house person that is experienced in Investor Relations? (This was asked because several investor’s and potential investors have tried to call the number and send emails to the IR person listed on the Fastech Services, LLC website and none have received responses causing some to think the company does not care about its shareholders).
Management will, from time to time, make itself available to answer investor related questions, but will refer most questions to its external IR consultant, in order to focus most of its efforts on building out the technical side of the remote monitoring and control systems as well as on the consolidation the company and expansion of its customer base. We don’t expect to hire a full time internal IR person in the foreseeable future unless the resources allow and the need arises.
6)Is it possible from the company to release unaudited financials when the wait for the completed ones from Tatum, LLC?
SARS is working to update and post unaudited financials for 2008 and the subsequent quarters. It intends to filed audited, consolidated financials of the combined SARS-Swank entities, consistent with the reporting requirements of public companies, upon the closing of its financing.
7)Does the company have a new or updated IR person contact phone number where someone can be reached?
Joe Malone
786-375-0556
sars@equitydigest.com
