Business Description
We do not currently have sufficient capital to conduct the present or proposed
business activities described below. The costs to operate our business are approximately
$72,000 per month. In order for us to cover our monthly operating expenses,
we must generate revenues of approximately $115,000 per month. Accordingly,
in the absence of revenues, we must secure $72,000 in equity or debt capital
each month to cover our overhead expenses. In order to remain in business for
one year without any revenues, we must secure $864,000 in equity or debt capital.
If we are unsuccessful in securing sufficient capital or revenues, we will be
unable to continue any business activities. We have not obtained any commitments
for additional capital, and we may not be able to obtain any additional capital
on terms not unfavorable to us, if at all.
We have designed and customized standards based audio and voice collaboration
solutions for prospective customers as part of a unified group communication
system. We consider all aspects of a potential customer’s information
technology resources and existing telecommunications network in creating a design
best suited for that customer. In 2013, we developed our own proprietary group
communication solution and have built and installed four of these solutions
as of the filing date of this report. Prior to developing our own solution we
used WAVE software as the core component. We have designed, built and installed
18 unified group communication solutions as of the filing date of this report,
14 of which utilize WAVE software. In November 2013, we discontinued using WAVE
software as a component in our unified communication solution installations.
Revenues have been generated from the design, construction and installation
of the group communication systems. We have also generated revenues from maintenance
and support contracts, once a unified group communication solution has been
installed and tested. While we no longer sell WAVE based systems we will continue
to support the installations that we have previously installed. We also sell
our proprietary line of Internet Protocol Gateway which we have branded the
AudioMate 360 IP Gateway, discussed below. These units are currently being sold
directly to end-users and by Value Added Resellers (“VARs”). As
of the date of this filing, we have approximately 10 active VARs, and we have
sold our gateways to more than 1,000 end-users in the United States and 18 foreign
countries.
We have developed an Internet Protocol Gateway which we call the AudioMate
360 IP Gateway. The AudioMate 360 IP Gateway has been designed to provide an
Internet Protocol Gateway to users of unified group communications. The AudioMate
360 IP Gateway is available in different configurations which enable it to be
used with various types of communications equipment.
Although other devices are available that perform the same or similar functions,
we believe that our price for the AudioMate 360 IP Gateway is substantially
lower than the prices others are presently charging for similar devices. If
we are unable to provide the AudioMate 360 IP Gateway to our prospective customers
at substantially lower prices than others are charging for similar gateways,
our business will be materially adversely affected.
1.73%