Shareholder Letter:
Letter To The Shareholders
June 24, 2013
Dear Shareholders of Viper Networks:
On behalf of Viper Networks’ executive management team, the Board of Directors, employees and associates; I am writing to provide a more definitive accounting of numerous developments; including joint ventures, partnerships, alliances, and agreements that have been announced since the last shareholder letter issued in early 2010.
The time has come to clarify our newly-structured corporate operations that feature our core IT and wireless communications business with a projected 3rd quarter net profitability expectation, the increasing value of the Company’s minority ownership position in Aequitas Energy; and Viper Networks expanding strategic partnership with LED light manufacturer Apollo Metro Solutions, Inc.
Indeed, it is great to communicate how well we have positioned the Company for sustained profitability through fiscal years 2013, 2014, 2015 and 2016 simply based on our long-term services agreement with Mastec, Inc. (NYSE: MTZ).
However, let me address the recently imposed ‘chill’ on our stock by DTC. On May 24, 2013 we submitted all information requested by the DTC to our SEC lawyer to support the proper issuance of stock during the past 3 years, which should lift the 30 day trade clearance chill effect imposed by DTC. All completed documents were submitted with our attorney’s Legal Opinion, and we anticipate a positive response at any time.
Also, though we are busy with new wireless communications projects in the U.S. right now, we are working to gain higher trading level status with a partial reporting ‘Yield’ status with Limited Information this summer and then Current Information status on OTC Pink by making filings publicly available through the OTC Disclosure & News Service.
Now I’ll provide some updates and notable conclusions on matters previously announced.
In January of 2011 we officially stopped all work on the India Cirilium project with BSNL for calling card services after the country telecommunications ministry was involved in a long investigation of its minister that resulted in the cancelation of several contracts and put our strategic partnership agreement with Cirilium on indefinite hold.
Additionally, by the end of 2011 we finished all telecommunications projects in the country of Saudi Arabia, and we ended the project that was on hold pending license approval from the government for recycling and environmental services. The license was ultimately not awarded and thus, the project was canceled.
In January 2009, we also entered into a Teaming Agreement in the Kingdom of Saudi Arabia to form a new entity, Saudi Nossan Viper Green Key (SNVG) for the purpose of developing and bringing to market environmentally-friendly products and services.
During this same period we announced project specific analysis and site selection for a large-scale plant installation in Industrial City in the Kingdom of Saudi Arabia and in South Korea to convert millions of metric tons of bio waste to compost.
These two projects were ultimately abandoned or canceled later in 2010, since final permitting approval became grossly delayed and/or we were not awarded the license.
In early 2012, Viper Networks signed an agreement with LED America to start manufacturing LED lights in a joint venture with several other groups to establish the first LED manufacturing facility in the U.S. located in Washington D.C. Since a portion of the sizable grant monies earmarked for the project tied to one of the JV parties became significantly delayed due to non-related processes, the Company moved on.
In fact, it was in this period during the last two quarters of 2012 that I believe the greater good for Viper Networks and its shareholders prevailed. For this is when we not only officially ended our agreements with LED America and all related agreements, but shortly thereafter began working with Apollo Metro Solutions, Inc. (www.ApolloMetro.com).
This, our primary focus over the last 9 months, has been to help build and test the new breakthrough LED lights through multiple pilot projects (as announced in Sri Lanka and domestically in Ohio). Apollo Metro Solutions now has a full selection of intelligent LED lighting solutions that can be deployed into metropolitan areas, parking lot and warehousing facilities. Not only does Apollo LED lighting deliver, arguably, the best performance and energy efficient LED lights in the market, they also have the ability to incorporate a variety of technologies into a single design.
The main reason for delays between successful pilot program conclusion and new order deliveries going forward has been two fold. One, we were expected to cover all manufacturing costs upfront and two, Apollo Metro created a better mouse trap, or rather a new second generation of LED lights that once the word was out, all parties abroad and in the U.S. requested new testing for since they wanted their existing orders to be replaced with the new generation of LED lights.
As announced May 9th, the New Generation of LED Lights was shipped to both pilot project parties overseas and in the U.S. The highly successful results has lead to new manufacturing terms for at least one major domestic client that will pay 50% upfront to cover manufacturing costs and 50% at delivery.
In equal partnership with Apollo Metro Solutions, we are now in production of the 2nd generation LED lights and expect to release details of this first full fledged order shortly. Investors and shareholders should know that the quality of the remarkable breakthrough LED lighting products (and now the new 2nd generation) are proving itself heads and shoulders above the competition. Additionally, city and government department agencies and commercial markets we are testing in or in discussion with worldwide represent potential large scale business of the highest order.
The other corporate priority was to get our core telecommunications talents and services up and running in the U.S. market to establish solid revenues and growing profitability. As a U.S.-based company headquartered outside Detroit in Troy, Michigan, securing a long-term contract to work on North American wireless communication projects was paramount.
We have now accomplished that (VPER news: 6/24/13) by signing a 3 year contract with MasTec, Inc. (NYSE: MTZ). This leading industry force for building and rebuilding America’s infrastructure generated $3.7 billion in revenues in 2012 and delivered a Compound Annual Growth Rate of 27% since 2007. Since signing the agreement, Viper Networks has expanded project capabilities by hiring twenty project specialists for our engineering and wireless communication requirements since beginning work at the beginning of May 2013.
And finally, our third area of interest for building company and shareholder value comes from our 4.5% minority equity ownership position in Aequitas Energy, which we acquired by investing $130,000 one year ago in June 2012. Although Viper Networks may have a continued opportunity to invest more cash to increase our ownership percentage, our current investment focus is geared to expanding our LED business segment, in both market development and order fulfillment.
That being said, Aequitas Energy has now become a licensed electric supplier in Massachusetts too, along with officially launching their retail electric service in Connecticut in January 2013. Aequitas Energy is extremely well-positioned to capture notable market share in these deregulated states (and more TBA) by offering some of the lowest rates available. Although Viper Networks is a small minority shareholder, our stake could become very valuable, very quickly. So we will provide occasional updates as appropriate and encourage you to do your own research, compare Aequitas Energy’s rates and pull-up your energy procurement partners at www.AequitasEnergy.com.
With Viper Networks third quarter starting July 1st, the Company expects to announce unaudited quarterly results ending 9/30/13 shortly thereafter. We also look forward to self-reporting our audited financials for the fiscal year ending December 31, 2013; which we anticipate releasing during the first quarter of 2014.
In conclusion; things are looking great for the Company, so stay tuned as we focus on our huge potential with Apollo Metro Solutions over time, our solid revenue and earnings stream over the next three years through Mastec, and our passive position in Aequitas Energy worthy of significant appreciation in the not too distant future.
Thank you and best regards to all current and future shareholders.
Sincerely,
Viper Networks, Inc.
Farid Shouekani, President & CEO
