A couple of notes on production. During a tour of the Delta and TMS facilities back in August, the production processes were being put together and worked out. First, TMS works by batch, as they use the same equipment to do work for numerous customers. This requires changing various tooling and die parts for each customer. Delta, on the other hand, is a process flow orientation, setting aside a part of their facilities for work strictly on HLNT's units. In either plant, a 1000 unit production per week was easily possible. The ceiling for production, without any changes to the infrastructure was nearer to 3000 units a week. Above that, TMS would have to invest in more equipment, which they have more than enough space for. Delta would have to subcontract some of the production work but complete the assembly and testing at their facility.
Given the above, based upon an average of 1000 units per week for 50 weeks (allowing for holidays and breaks), that is 50,000 units a year. Given PQ3's sales number of $5200.00 average per unit, that is $260,000,000 for a year. AHS will receive the sales revenue, and as AHS pays for the installation by Velocity, as well as various other expenses, including advertising and promotional fees, will distribute the after expenses revenues equally to AHSGS&M and HLNT.
HLNT's revenues are increasing. While we have been constantly reminded of HLNT's past operating losses, most of which have revolved around certain law suits, all such suits should be resolved early in this year. No more drain due to legal fees. HLNT will be able to focus on and complete the reporting and disclosure, another area of concern for many, with the possibility of it being done before March 31st being very likely. The disclosure should take care of 99% of all complaints about HLNT's lack of release of information, and the Company should be able to finish its clean up of the HOSS and HHHI companies that have been allowed to go dormant on the Arkansas SOS, as well as getting the Arkansas SOS to clear the status of HLNT's registration with the previous overpayment of taxes.
Any other complaints are rapidly becoming insignificant, and shareholders will be able to better enjoy their investments during this year, with the finish of January and going forward.
