SPO Networks Inc (SPOI)

[Ihub Rookie]

Do your DD, son. Or - I can just post the whole thing for you.

Let’s get the crappy stuff out of the way first:
HLNT became a legitimate company in early 2010. It was previously SSEV (Systems Evolution), and their former boss was Steven Humphries, who has been charged with securities fraud for manipulating the price of penny stocks.

Humphries was ousted by the SSEV board when it became aware that he had colluded with NIR Hedge Fund manager Corey Ribotsky, who was ousted after the SEC accused him of a misappropriation of funds.

Anyway, there was a transfer of an “asset,” which was essentially worthless, but put on SSEV’s books for $6 million. Finally last month, after two years of litigation, the situation was resolved with a settlement - less so because HLNT was "in the wrong," and more so to relieve the company of the "dark cloud" the lawsuit brought over the company in its quest to secure major fleet deals with Fortune 500 companies.

The settlement details are here: http://www.heraldonline.com/2012/08/23/4208961/highline-technical-innovations.html


HLNT was established in May 2010, and it has now been a legitimate company for more than two years. After dealing with a lot of financial bullshit, they are finally in a position to become fully reporting.

The company is made up of two ventures: the Hydrogen Injection System (The HY-Impact line of products), and the HOSS UTV (Ultra-Terrain Vehicles).

HOSS UTV: In October 2010, HLNT announced a Joint-Venture with Dong Feng Motors, one of the largest vehicle manufacturers in China, to produce the HOSS UTV, which would be sold for approximately $3000 less than other UTV’s available. The first one was produced, and is currently undergoing final tests with the EPA. Once approved, the JV with Dong Feng will continue, and they will earn royalties off of the global selling of the UTV. Many investors took interest in the company because of the HOSS, rather than the Hydrogen Injection System. The latest company update is here:

http://www.prnewswire.com/news-releases/highline-technical-innovations-issues-update-on-the-hoss-utv-162886866.html

HYDROGEN INJECTION SYSTEM: Until this year, their injection system was called the "Highline Wildcat Booster." If you look at HLNT’s financials for the last year, they sold about $1 million worth of these. There are 42 dealers right now, and they’ve found success in the OTR Transportation Industry, Agricultural Industry (Farming equipment) and Boating Industry. In fact, they’re spreading like wildfire throughout the Northeast: http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20120115/NEWS/201150358

As of last November, HLNT had pilot programs on ten fleets locally on companies fairly close to their corporate office in Farmington, Arkansas. They announced their first fleet deal with CCS Midstream in December: http://www.highlineinnovations.com/news-and-media/press-release/detail/highline-technical-innovations-inc-announces-a-contract-with-ccs-midstream-services-llc-and-wildcat-llc-in-a-green-and-co--0

Fast-forward to where they are right now - and the meat of why this company will be successful. In May, they announced a partnership with a man named Bill Cunetta, a transportation veteran of more than 21 years, who spent 10 ½ years as the business development manager at Ryder, Inc. in Miami. He's also worked for Penske and XATA Corportation. This company name, formed specifically to finance and market the Hydrogen Boosters, is Alternative Hydrogen Solutions: http://alternativehydrogensolutions.com/

From Bill Cunetta’s LinkedIn profile: "I have...solidified relationships with companies like Ryder Systems, Inc., NFI, Penske, CVS, Rite Aid, IAMS, Chiquita Brands, Carrier Transicold, and Land O Frost to name a few."

From a Casaprop on how Cunetta became involved with HLNT:

"Last summer (2011) I met a guy and told him about this new technology. He said he had a friend who worked for Penske and might be a good fit because he had so much experience in the transportation industry.

For 3-4 months I hounded him. What about this guy from Penske? He told me he didn't believe you guys can save that much fuel.

But after constant badgering he finally agreed to meet with us. Told him what we were doing with the fishing boats, showed him the product, and it peaked his interest. This Penske guy {Bill Cunetta} said he would fly down to Arkansas on his own dime and check out the company first hand. He was very skeptical even after we had introduced him to the captain of the Dragon Lady (a fishing boat featured on the Discovery Channel show 'Lobster Wars.')

Well he was so impressed with the technology and the company personnel like Chad (the CEO), he came back and said he thought he could take the company to a new level. He has been working on this ever since. Lots of work, travel, and personal sacrifice. He gave up two multi 6 figure job offers to put this together. This is just the tip of a very big iceberg."

The most recent design of the Hy-Impact product allows for it to be placed UNDER THE HOOD, and not exposed, where the possibility of tampering, theft, and weather problems could all be an issue.
What Bill Cunetta is doing, is not only cutting through the corporate BS, by bringing the product to the RIGHT people, but he’s merging this technology with other companies, that have the potential to save fleets nationwide a TON on fuel costs.

HLNT never releases information until AFTER THE FACT, in order to protect the company’s interests. Unlike other slimy penny stocks, they are a legitimate company with a product that could revolutionize the transportation industry over the next few years, ESPECIALLY with new EPA standards for fuel trucks in 2014.

Highline is also changing web servers to RackSpace, which is used by many major corporations, solely for the purpose of handling a ton of traffic. They are preparing for something big - it's no longer a "mom-and-pop" sort of venture.

Many of us fully expect many Fortune 500 companies to sign up once they see how affective the product is – to reduce their bottom line in fuel costs and conform to recent EPA regulations re: emissions.

That being said, AHS is on the verge of making an unprecedented splash in the corporate transportation industry, securing multiple fleet deals, much thanks to the partnerships they’ve recently secured.

1. Delta Electronics (www.deltagroupinc.com) is mass producing their Hy-Impact injection systems
2. Velociti, leaders in technology deployment, is in charge of global/nationwide installation (www.velociti.com/case-studies)
3. LaunchIt PR, dedicated to the transportation industry, is handling the product launch

None of the aforementioned partnerships would have been possible if their respective managements hadn’t truly believed in the product and seen it work. In the words of Velociti COO Deryk Powell, “The use of hydrogen systems to improve fuel economy in combustion engines has been on our radar for quite some time. But frankly, until now, we've not felt a viable solution was available in the market. After many months of studying the engineering, manufacturing and design for AHS's Hy-Impact product, we feel confident AHS offers enterprise-level users the solution they've been waiting for. The market potential for AHS is massive in size.”

Share structure is a concern for some. But Cunetta has put an end to any dilution with the private funding coming from backers of AHS. Plus, CEO Chad Coats has repeatedly said that there are no plans for an R/S - and that buying back shares will become an option when revenue starts flowing in.

Finally - This is why the pending news is big... You don't ramp up this much production without a deal in hand...right?


LITTLE ROCK — Delta Group Electronics Inc., based in Albuquerque, N.M., said Friday that the work force at its Fayetteville plant could double to 100 after it was chosen as the “premier manufacturer” of Alternative Hydrogen Solutions’ fuel-saving and emissions-reducing systems.

Alternative Hydrogen Solutions was formed earlier this year as a joint venture between Highline Technical Innovations Inc. of Farmington, just west of Fayetteville; and Alternative Hydrogen Solutions Sales and Marketing LLC of Miami.

Highline Technical Innovations is the creator of a system known as Hy-Impact that is said to increase the ef- ficiency of internal-combustion engines.

Delta Group primarily serves as a manufacturer for the defense, aerospace, telecommunications and capital-equipment industries.

Stan Czeczotka, general manager of Delta Group’s Fayetteville plant, said the facility will be hiring a minimum of 15 workers, but he expects the number to be closer to 50. He’s advertising for workers experienced in soldering and assembly.

His company also contracts with Boeing Co.’s Oklahoma City manufacturing plants.

“We are attracting larger customers,” he said. “I think this is a tremendous opportunity for people here in Arkansas. Manufacturing is coming back. It’s a good shot in the arm for Fayetteville.”

The 36,000-square-foot Fayetteville plant is the newest of Delta Group’s four U.S. facilities.

According to the companies, the Hy-Impact product line uses hydrogen as a catalyst to more effectively burn fuel. Electrolysis is used to separate hydrogen from water, which allows precise amounts of hydrogen gas to enter the engine’s combustion chamber.

The result, the companies say, is a 9 percent to 23 percent increase in fuel economy and sharply lower emissions.

Products marketed under the Hy-Impact line include Hy-RoadT for trucking, Hy-MarineT for maritime applications and HyRailT for locomotives, among others.

Steve Clark, president and chief executive officer of the Fayetteville Chamber of Commerce, said he anticipates that the company’s work force eventually will grow to 125 to 150.

“They are looking to add jobs. That is good news. They’re a big part of our manufacturing community,” he said.

Clark said the company has a strong leadership team that has worked with the university on several projects.


FINALLY, this is from Sparks100, a respected member of the board, who has helped many of us though on-going litigation over the past couple years. He's signed an NDA, but it's an excellent read nonetheless:

Visit to Arkansas (Sept 2012):

During this last week, a few of us shareholders had the opportunity to visit HLNT. We asked to come, HLNT did not send out invitations but welcomed us. We got to see HLNTin action, got to visit the new plants and sit in on some of the meetings.

We visited TMS (Technical Machining Services http://tms-inc.us/). Huge place, you could fit 5 of HLNT's production factilties into the main TMS building. They have lots of equipment, millions of dollars worth invested in the plant. We had the opportunity to ask questions of the plant manager, and we did ask a lot of questions. Being from a production background as well as finance, TMS showed that they not only understood HLNT's products, but that they believed in quality and internal control. They are highly adaptable and can incorporate anything that HLNT can throw at them. Delta Electronics was a facility at least twice HLNT's size, and they definitely have the controlled environment needed for the production of electronic equipment. We all had to wear special clothing to prevent static or contamination of the production areas. Both places have the capacity to meet a 500 unit a day production easily and can ramp up from that with out any problems. Both are well founded financially and won't require HLNT to carry them in any way. We also visited other places that HLNT hasn't PR'd yet, so there is even more to the infrastructure than has so far been presented.

The technology. With the inclusion of Delta and TMS, the HLNT facility has been becoming the testing and R & D facility. We got to see the new style of HHO units that ranged from automotive to huge industrial. The automotive unit was not much larger than two i-pods together. A prototype unit on the large commercial weighed a good 45 pounds (Chad lifted it as though he was doing a curling exercise with one arm.). The improvements in the technology have been in the last 180 days, with an accelleration in the last 90 especially. You are not going to find any of this on any E-Bay.

In Chitownbiker's post #72134, he talked about uses of HLNT's technology on the Mississippi river. HLNT is already working in that area, one of the things we will hear about. As St John replied to Chi's post, dude you would really be impressed with whatHLNT is doing. There are already civil engineering implications to HLNT's HHO processes that you may be experiencing here in the near future. While much of HLNT's focus has been on fuel savings, they have been tapping into the other facet of the HHO process, emissions control, and right now, it stands to dwarf the Trucking industry.

We got to sit in on some staffing meetings, and also learn about some of HLNT's long range plans. We also got an update on the HOSS, which HLNT has more information to PR about, so the company is really progressing.

Can't say anything else without violating the NDA, but I will summarize the trip by comparison to last year's visit.

1. Last year, HLNT was having to go the route of PIPE funding to keep the doors open. This year, HLNT has been anchored and aligned with companies that can stand on their own, while HLNT has been receiving developmental support from HSG.

2. Last year, HLNT was the designer, manufacturer, sales organization all rolled into one. This year, manufacturing has been transferred to more capable plants (reducing HLNT's need for production investment), sales efforts are being developed under HSG with advertising being done by Launchit and installation being done by Velocity, allowing HLNTto concentrate more on R & D than ever before.

3. Last year, HLNT was focusing on the agricultural and trucking markets, primarily. This year, HLNT has expanded into more markets that are being developed, and recently into more uses of the HHO as opposed to just the fuel savings.

4. Last year, HLNT was working its way though the NIR lawsuit. This year, they are now free of it, and will be executing the terms of the agreement.

5. Last year, the HOSS was being slowly advanced. This year, it has been given more priority. HLNT has a lot more information concerning the HOSS that it can release. There are even discussions as to what foreign countries it will be introduced into, and Dong Feng is waiting on the EPA certification to launch full scale production.

In the last year, HLNT has made substantial progress, and that progress has been coming to light within the last 2 to 3 months. And that is only according to what HLNT has already released.

Anyone looking backwards is looking the wrong way.