ALBUQUERQUE, N.M., May 14, 2009 (GLOBE NEWSWIRE) -- AccessKey IP, Inc. (Pink Sheets:AKYI) CEO George Stevens, issued a letter to shareholders today, providing an update on the company's progress. The letter reads as follows:
Dear Shareholders of AccessKey IP:
Since my last letter we have managed to transform the Company from one with an uncertain future to a business with a viable and focused market. We took a major step by completing two major milestones, the completion of audited financial statements for years 2007-2008 and most recently the filing of our Form 10 with the Securities and Exchange Commission (SEC) giving the company full disclosure and transparency.
No surprises -- For those shareholders who have been following our press releases and prior financial postings, the Form 10 should not contain any surprises. Although we continue to deal with difficult legacy issues, everything is on the table. All the notes and the full extent of the debt were included in the audited financials previously released. The Q1 interest calculation was done based on the worst case scenario. We included an amendment with each of the notes, indicating we did not accept the interest calculation as written and had agreement from the Makers to renegotiate. Before this could be accomplished, the SEC filed a complaint against the Makers (unrelated to AKYI) and everything has been placed on hold. Management has no intention of supporting these terms as they are usurious; contrary to public policy and will be litigated if necessary. When this interest abomination is adjusted, financial statements will reflect a prior period adjustment.
The completion and the subsequent filing of the Form 10 is a noteworthy step for AccessKey in becoming a fully reporting company and having its stock quoted on the OTC Bulletin Board. AccessKey is committed to providing accurate and timely information to its shareholders as events materialize. Although there is no set time for completion, the SEC has 60 days to respond to our filing with comments, which we would then submit a reply. This continues until approved or no further comments are received.
Over the last two years, there has been no dilution of stockholder equity. In fact, the company has decreased the number of outstanding shares by more than 35 million shares, from 398.6MM to its present outstanding position of 363.3MM, a reduction of close to 10%.
Debt restructures have taken place and have encompassed all of our outstanding notes. All of the original convertible notes have been rewritten to EXCLUDE any conversion rights of the Holders, relieving a great burden on the company. This has a significant impact on the future of the company and shareholder value. Although the current note obligations are $4.4MM (most of which was accumulated prior to 2007 when the company came under new management) we believe the total debt is manageable and can be totally eliminated over a reasonably short period of time.
Although Q1 2009 revenue of $59K, on the surface is disappointing, it needs further explanation. Our InCharge products were a big success in Q4 2008 and in fact sold out. We reallocated most of our Q1 2009 inventory replenishment to cover outstanding orders in December 2008. Unfortunately, this resulted in not having product availability for most of Q1 2009 due to lead time requirements for production. Considering 60-70% for video gaming sales are generated during the Holiday season, it was a logical decision to take advantage of the demand in Q4.
Our Set Top Box joint venture with CSI Digital, which provided for $1.5 MM for specialized IPTV related development, is expected to be completed soon. The technology is fully completed and has been incorporated in our STB. We have been working with a third party to provide Middleware, which is the graphical interface for the device. That phase of the project is now nearing completion. Once complete the revenue as well as associated costs will be recognized on the financial statements. The JV agreement allows CSI "favored nation" pricing to the finished product allowing them to sell to their customers. AKYI can also market the STB as the Intellectual Property remains with the company.
New products:
TekCase product line provides a protective molded plastic case with a built in battery for extended use or play time of up 3 times that provided by the manufacturer.
Our TekCase for the DS Lite is available now and the DSi by end of month. Based on the number of Nintendo DS Lite of over 75MM units sold and the launch of the Nintendo DSi being reported as greater than the DS Lite, our retailers and etailers have all expressed anticipated success of the product. We have already received two outstanding product reviews from gaming publications.
TekCase for the iPhone is currently in the final stages and is expected to be released for Q4 2009. Additionally other products are being reviewed where the TekCase technology can be utilized.
Respectfully;
George Stevens, CEO
About AccessKey IP, Inc.
AccessKey IP, Inc. is a developer of cutting-edge technologies and best-of-breed products tailored to address the market opportunities created by the explosive growth of digital communications, entertainment-related services and specific consumer electronics platforms. AccessKey IP's AccessKey(TM) products, powered by the Company's patented technology, provide complete access to the coveted "Triple Play" Set Top Box (voice, video and data) and "Quadruple Play" Set Top Box (voice, video, data and wireless) offerings of cable, telecom, satellite and broadband service providers. The Company's AccessKey Home(TM) and portable flash drive-sized AccessKey PC(TM) allow subscribers to "channel surf" streaming "HD Quality" television content (IPtv), navigate the internet, watch Video on Demand (VOD) offerings, play video or internet-based games, listen to music, make phone calls (VoIP), video conference, run a full array of computing applications, securely store data and more, all from a single device and service provider network. Its' wholly owned subsidiary TeknoCreations was founded to participate in the explosive growth of Consumer Electronics and Business security needs, TeknoCreations designs high quality products with attractive pricing to enhance the consumer's favorite electronics products and the expanding security needs of corporate America.
Forward-Looking Statements
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of AccessKey IP, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Please visit the Company's websites www.accesskeyip.com, www.teknocreations.com