The following is a letter to Shareholders from Mark D. Schmidt,
President/CEO of Cyberlux Corporation.
Dear Fellow Cyberlux Shareholder:
I would like to update you on the progress we made in 2010, the
Company’s plans for 2011 and the ongoing challenges facing Cyberlux
Corporation.
First, I want to express my continued appreciation for your
support as a fellow shareholder, and address the reasons why we are
not as communicative as other OTCBB companies our size While the
Company recognizes that the growing pains experienced by younger
companies is ultimately passed on to the shareholders in price
performance, please understand that your Management team is
continuing the challenging task of putting past legacy issues
behind us that are still materially affecting the stock today.
Cyberlux Corporation is truly thankful to have you as an investor
and we fully understand the trust you have put in Management.
Cyberlux Management is committed to the restructuring tasks that
remain ahead, and we will continue the turnaround effort that has
been underway for the past two years until the job is done.
Additionally, many of our clients consist of very large publicly
traded companies, as well as the Government. The contracts we have
successfully secured require confidentiality agreements and
conditions that sometimes only allow us to disclose these events in
our required filings. You must understand that we would love
nothing more than to be able to market these accomplishments
through press releases and the like, but we have experienced
first-hand the ramifications that occur with doing this within our
sensitive client base. We have learned that the downside to
releasing this news can range anywhere from being reprimanded by
our clients, to allowing competitors to take business from the
company. We must balance our exposure based upon the language in
our contracts, feedback from our clients and simply what makes
sense to the company. That being said, the company does its best to
be as transparent as possible, and always attempts to be in full
compliance with all disclosure regulations, but we must do what is
best for the company when it comes to what can be released as
marketing material.
During 2010, Cyberlux Management focused on the Company’s
competitive differentiators: strong governmental relationships,
product innovation, proprietary LED knowledge and patented LED
technology. This focus allowed the Company to secure its first
significant Department of Defense (DoD) contract in May with the
National Guard Bureau for 200 BrightEye Systems and $3,400,000 in
revenue. In addition, we secured a second contract from the
National Guard Bureau for 39 BrightEye Systems and an additional
$663,000 in revenue. For a company our size, securing over $4.0M in
contracts is not only remarkable, but is the source of revenue and
profit that can fuel the turnaround effort already underway. Also
and as previously disseminated, we have an ongoing development
relationship with Spectrum Brands, most notably, its Rayovac brand.
This relationship calls for our design and manufacturing abilities
to compliment one of the largest branding companies with clients
worldwide. While the research and development of this project has
taken longer than we originally expected, we still believe this to
be considerable source of revenue in 2011 and beyond. Both
Management teams have been in constant communication and we hope to
have material updates for you in the near future.
The DoD contract, as well as the Spectrum Brands opportunity,
are two perfect examples of our refined business model that we
believe will lead to an improved balance sheet and a more valuable
company for all of you. Our pipeline is focused on similar clients,
so we hope to announce new revenue sources that are in-line with
what was described above.
We are already seeing the improvements with the Company posting
a 3Q 2010 net income from Operations of $272,907 versus a loss
$486,161 for the same period in 2009. On a year-to-date basis, the
Company increased revenue by $1,539,962 and reduced its loss by
$936,889 through 3Q 2010, compared to the same period in 2009. This
is the first positive quarterly net income from Operations that the
Company has ever posted. In these results, we can also see that the
ongoing focus on expense reduction is reflected in the balance
sheet as well for 2010, with G & A expenses being reduced an
additional 17% from $1,604,029 to $1,327,943 through 3Q. Clearly,
we are making progress.
With this cost structure, the Company should be positioned for
growth as our business model continues to advance, but we can never
be certain of the future and the business risk a small company like
Cyberlux faces is ongoing. The Management team realizes that the
future viability of Cyberlux depends on a constant stream of
revenue from known customers with known demand and requirements. In
the past, the Company had false starts on products that did not
make it to market, which resulted in significant debt with
investors who had the opportunity to convert that debt into equity.
As disclosed, Management entered into a settlement agreement with
its largest, as well as one of the earlier investors that allows
what would have been a costly and strategically limiting
‘bottomless’ convertible debt into a payable that can be settled
over time. Ultimately, Management opted to reflect this payable in
the balance sheet rather than risk an uncertain outcome and
unforeseeable dilution of a limitless convertible debt. As the
terms of the settlement agreement stipulate, this payable can be
satisfied with payments either in stock or cash. Given the cash
flow requirements of the business, Management has had to rely on
stock as the means for satisfying this payable in a non-toxic
fashion, and this will be the case for the foreseeable future.
While satisfying this payable is, in our opinion, non-toxic, we do
realize it is dilutive. The CYBL share price has a direct
correlation with the amount of equity used to satisfy the payable,
which is a dilutive event. While we recognize that the progress
we’ve made justifies a higher market capitalization than where we
trade today, we also believe the best interests of the
shareholders, including Management, are being served by resolving
this payable with equity.
Management has a strong ethical belief that the share price is
driven by the markets, and we do not interfere with the Company’s
stock other than to inform the market of material events. As we
grow the business and resolve remaining legacy issues, the share
price should rise accordingly. For the foreseeable future, we will
continue to experience dilution, but we are hopeful to see a
transition in the future where the share price reflects
performance. Like most public companies, our goal, is to minimize
dilution, become sustainable from revenue generation and share with
all investors the benefit of a stock that is valued relative to the
growth of the company.
There is no doubt that the Company must continue to define the
business model, as well as the capitalization structure, in order
to yield results for both the Company and investor. We are
discussing every possible opportunity that will allow the
shareholder to be in lock step with the Company as it grows. The
changes Management has made in the Cyberlux business model are
showing as positive results both in the balance sheet and in the
operation of the Company. The remaining challenges require every
Cyberlux employee to be constantly focused on execution, on quality
and on achieving the commitments we make to our customers and
business partners. Excellence is achieved daily, through focused
execution and the unwavering efforts of Cyberlux employees.
Thank you for your continued support.
Best regards,
Mark D. SchmidtPresident/CEOCyberlux Corporation
About Cyberlux
Corporation
Cyberlux Corporation (OTC Bulletin Board: CYBL), a leader in
solid-state lighting innovation, has developed breakthrough LED
lighting technology that provides the most energy efficient and
cost effective portable lighting solutions available today for
military and commercial uses. The Military and Homeland Security
products provide tactical covert and visible lighting capability
and are designed as highly mobile, battery-powered lighting systems
ideal for threat detection, force and asset protection and general
expeditionary lighting needs. For more information, please visit
www.cyberlux.com.
This news release contains forward-looking statements. Actual
results could vary materially from those expected due to a variety
of risk factors, including, but not limited to, the Company’s
ability to expand its production capabilities concurrent with
product orders. The Company’s business is subject to significant
risks and uncertainties discussed more thoroughly in Cyberlux
Corporation's SEC filings, including but not limited to, its report
on Form 10-KSB for the year ended December 31, 2009 and its 10-Q
for the quarter ended September 30, 2010. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements, which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Cyberlux (PK) (USOTC:CYBL)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Cyberlux (PK) (USOTC:CYBL)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
