ALSO Website: http://www.absolutels.com/
Absolute Life Solutions, Inc. (OTCBB: ALSO) is primarily focused on the life settlement industry and offers investors the opportunity to invest in the life settlement arena. In the past, when an individual of advanced aged no longer wished to pay, or was unable to afford a rising premium payment on their life insurance policies, there were limited alternatives. The investor has the opportunity to participate in these transactions and avail themselves to the matured value of the policy; the insured senior has the opportunity to sell the policy for an immediate cash payment when faced with the choice of either expending diminishing cash resources to make premium payments or allowing their policy lapse.
10K Phenomenal (Year End August)
- $7.3 million investment in life settlement transactions resulting in a $5 million net gain
- Income before taxes of $3.8 million
- Net income of $2.3 million, after deferred taxes, or $0.03 per share on approximately 80 million shares, basic and diluted
- The completion of an initial $13.5 million of a $60 million capital raise
- Cash, cash equivalents and short-term investments at August 31, 2010, totaling $5.7 million
Next Week 10Q Out Expect Phenomenal Numbers
HOLDING FOR PRESS RELEASE — GOOD NEWS ANTICIPATED — BASED ON 10k REPORT
Why to Invest in Absolute Life Solutions:
- Life settlements are a return-oriented investment whose performance is less correlated to the rest of the market than other traditional asset classes
- The quality of a portfolio of life settlements is influenced by the accuracy of mortality assumptions
- The quality of a portfolio of life settlements is also impacted by the claims-paying strength of the underlying insurance carrier
- When combined with the potential for steady, lucrative returns, life settlements represent attractive diversification opportunities
- First to market, unique opportunity, and experienced management
A life settlement is the sale of an existing life insurance policy by a policy owner (frequently, but not always the insured) to a third-party investor for more than the policy’s cash surrender value but less than its net death benefit. Most life insurance policies contain assignment clauses and change of ownership clauses that the courts have recognized provide the owner with a right of resale in its personal property.
This practice has become a common component in financial management over the last 15 years.
After purchasing a policy, an investor can hold it until the death of the insured and collect the net death benefit or may resell the policy.
The purchase of life insurance policies in this manner can represent an investment opportunity when the transactions are based on sound underwriting and analysis, including a thorough review of the health and life expectancy of the insured, the expected premiums due and the time value of money.
Eight Times Surrender Value
Current life settlement transactions allow the individual to receive an average of eight times the surrender value for an asset that was previous illiquid and those they may have had to abandon. More and more seniors are becoming aware of the potential of these transactions creating a growing supply of policies available for purchase.
High Quality Policies Optimize Return
Absolute Life Solutions, Inc. offers a distinctive approach that provides liquidity to seniors while creating a stable alternative asset class for investors. By securing only high-quality policies and employing a proprietary valuation platform and best-in-class portfolio and management techniques, Absolute seeks to optimize an insurance policy’s inherent value and minimize risk.
Absolute Life Solutions, Inc. continually investigates and analyzes life insurance policies to identify profitable cash flows and to isolate risks that would negatively impact those cash flows. Our team of experts craft investment strategies to manage those risks and to provide the company with solutions that enhance the yield on our investment portfolio. As a byproduct of the investigation and analysis certain tools have been developed that can help financial professionals and policy owners accurately assess the value of their policies.
A Favorable Outlook
Three key factors make the current life settlement market an attractive one for institutional investors.
The pool of potential assets is extremely deep.
In 2009, there were approximately $10.2 trillion of life insurance policies in force in the United States. Of that amount, $416 billion in life insurance is owned by individuals over the age of 65. Based on this increase in the number of persons eligible for life settlement transactions and assuming the same percentage of seniors with life insurance, by 2030 there will be roughly $800 billion in life insurance owned by seniors 65 years of age or older with $161 billion eligible for life settlements.
The second factor is that awareness of the life settlements option is growing among seniors.
This is owed in part to significant industry-wide education efforts. The deceleration of the rise in lapse rates indicates that while education is working, more needs to be done to heighten awareness fo Life Settlements as viable financial planning tools.
Finally, a flood of capital from sophisticated institutional investors has helped expand the market.
This capital has brought about increased transparency and greater efficiency. This rapidly evolving structure has increased the comfort level of the insured, enabling them to engage in such transactions with more confidence. Moreover, institutional purchasers have spurred recent interest in the securitization of life settlements, a development that is leading to earlier exit strategies, continuing a cycle of greater transparency and greater liquidity.
Cash Surrender Value Benefits Policy Owner and ALSO Investor
Historically, policy owners including those with pressing financial problems and those who no longer needed death benefit coverage, frequently allowed policies to lapse for failure to pay premiums. Other policy owners, who did not need the relevant policy protection and were seeking liquidity, surrendered their policy to the insurance carrier and received the policy’s cash surrender value (CSV) in a lump sum payment. Cash surrender values are typically far less than the face amount of the policy or the death benefit payable thereunder, and are sometimes significantly less than the policy’s life settlement market value (LSV).
With the increased issuance of universal life contracts designed to minimize early year premiums through optimization of cost of insurance, especially for benefit of tax, estate and business risk planning, the number of policies issued containing very low cash surrender values has increased. The life settlement industry has developed over the past decade in response to the supply of high face-low cash value (hence higher market value) policies. In addition, as a practical matter, as people age health issues surface.
Taking Advantage of the Value Gap between Cash Settlement Value and Life Surrender Value
Healthy people tend to show a high propensity to let their insurance lapse, while unhealthy people tend to persist with their insurance. Since the Life Settlement market focuses on seniors 70+ with their increasing health impairments that come with age, more and more of them want to keep their insurance, but can no longer afford the premiums. Taking advantage of these two significant trends (the value gap between CSV and LSV, and the affordability issues of an aging, health-impaired population) investors have raised pools of capital to purchase life insurance contracts policy-owners would have otherwise surrendered or allowed to lapse.
Typically, an owner of a policy will discuss a potential sale with a broker, who will make the arrangements for sale with a life settlement provider that may either purchase the policy to hold or to resell it to investors. Investors in life settlements competitively bid on the purchase of a policy the owner or broker is seeking to sell, taking into account the overall health and life expectancy of the insured as well as the then-current economic environment. Policies that represent sound risks to investors can generate one or more bids in a competitive marketplace.
Seller Receives MORE than Cash Surrender Value
Investor Receives High Rate of Return
The life settlement transaction can be beneficial to both buyer and seller, because the seller is able to receive a higher price than the cash surrender value offered by his or her insurer for the Policy, and the buyer is able to purchase an investment with a high potential rate of return. Once the transaction is complete, the purchaser becomes the legal and registered owner of the policy and succeeds to all legal rights and responsibilities of the policy contract, including the right to designate the beneficiary of the death benefit payable under the policy and the obligation to pay premiums.
Investors in life policies may hold the policies for resale individually or in blocks, or may attempt to bundle them into a new vehicle and sell securities issued by that entity in a securitized transaction. Data from the American Council of Life Insurers shows that the voluntary termination rates for individual policies has dropped steadily from 6.6% in 2002 to 5.1% in 2007. Because the decline in the lapse rate coincides with the increasing number of reported life settlement transactions, we believe this indicates that more policyholders are choosing to sell their policies in life settlement transactions rather than voluntarily terminating these policies. While there is limited statistical information available on the more-likely-to-settle-segments, such as universal life contracts discussed earlier, our assumption is they are a significant contributor to this trend. We believe this corroborates predictions that the life settlement market will continue to grow in size as these transactions become more familiar to policyholders.
ALSO Purchases Policy at Discount to Face Value
Receives Benefits at Death
Absolute Life Solutions, Inc. will purchase ownership of a life insurance policy at a discount to its face value and receive the face amount of the death benefit under the policy when the insured person dies. In an Absolute Life Solutions, Inc. transaction, the insured is typically 70 years of age or older and has a life expectancy of five to ten years.
Coverage Types
The largest share of life settlements are individual insurance policies, predominantly policies known as permanent whole or universal life contracts, and less frequently convertible term policies. In many cases, the insurance policy is purchased for investment protection and in others it is used to financially protect a spouse or other beneficiaries of the insured upon death. Sometimes however, beneficiaries such as a spouse are outlived by the insured, and in that case, a life settlement is a much more logical decision than holding onto a policy. Other sources for life settlements are business insurance policies for funding of buy-sell or cross-purchase agreements that may no longer be needed if one or more members have exited the firm; key man policies if insured persons leave the firm or retire.
Executive benefit plans of small and midsized businesses often include life insurance policies and are a target market for life settlement transactions in cases where cash needs are pressing. Policies purchased for the purposes of fulfilling estate taxes would be excellent sources for life settlements in times when the tax hedging mechanism is no longer required. Many of the policies in these cases are held in trust, which require a settlement provider with unique insight and skills. The charitable giving component of estate planning frequently utilizes life insurance, such as in Grantor Remainder Annuitized Trusts (GRATs), wherein a trust is set up for a specific term, and insurance is purchased as a funding or tax anticipation mechanism to avoid trust assets becoming part of the estate of the owner. At the end of the term, or in certain cases where the GRAT fails (outsized asset performance, etc.), the insurance is no longer necessary or must be re-characterized. In these cases, and in others affected by plan termination, employment termination or estate re-engineering, especially as taxation and other regulations change, life settlement is becoming an ever-more considered financial option.
Increasing Availability of Settled Policies
The Company plans to primarily hold the purchased policies until maturity earning a return. However, the Company may consider development of securitizations of the life insurance policy pools, estimating that this program will enhance liquidity in the marketplace and entice a greater number of institutional investors to participate in the life settlement market. As such, securitization may provide an exit strategy more likely available to the Company sooner than the payment of the death benefit itself. Securitization is a key method for institutional investors in life settlements to exit their investment quicker. Institutional providers of life settlements can use purchased insurance policies and create “life settlement bonds” for sale, which are asset-backed securities with death benefits providing the revenue stream for the purchaser of the bond. There are several obstacles facing the securitization of life settlements. These include securities law consideration, convincing credit rating agencies to learn about life settlement backed bonds, accept the underlying underwriting and pricing of risk, as well as rating the bonds. Other obstacles include receiving enough funding to complete transactions in a timely manner.
The Market for Life Settlements
The Company believes that with awareness, the market for life settlements will grow as it offers owners of life insurance policies, aged 70 or older, or those with a life expectancy of 5 to 10 years or less, a liquid cash conversion and exit strategy from life insurance policies that are become available for reasons more fully described above. Clearly, this innovative wealth management tool becomes even more valuable in economic circumstances wherein income moves from current to fixed, especially during the latest worldwide negative cycle. The industry has developed partially as a result of these individuals who can no longer afford premium payments, and who wish a life settlement rather than letting their policy lapse or taking the cash-surrender value (or in some cases no cash value). Demographic trends indicate future growth of the population that comprises the life settlement market.
The “baby boomer generation,” which consists of persons born between 1946 and 1964, currently numbers around 78 million. The oldest members of this group are now reaching 64 years of age and are still a few years shy of the age of 70, the age that most life settlement providers currently focus on. However, the baby boomer generation will provide a large target market for the life settlement industry in the years to come, leading to possible significant refinement in the business model of the industry.
Currently the number of persons above the age of 70 in the US is over 27.1 million. In addition to providing a large addition to the target market for life settlements in the years to come, baby boomers may also become more open to the idea of life settlements as current advertising campaigns make them more acquainted with the concept. Further, hybrid products are becoming available, such as those with a smaller settlement up-front and the opportunity to retain a percentage of death benefit, and one where a percentage of the settlement proceeds is used to provide Long Term Care coverage. Suffice to say, as the over 70 population moves from the approximated 27 million to an estimated over 75 million during the next 18 years, the unit volume of life contracts that can be settled will be enormous. Life settlements are an attractive opportunity for both the insured party and provider where Minimally Funded Universal Life (“UL”) contracts are involved.
Maximizing Return
The minimal funding is designed to pay only for current COI (cost of insurance that increases with age) and results in low early year cash surrender values. Settlement offers for these policies are often materially higher than the cash value, making them an attractive incentive to exit an insurance contract. The providers benefit due to the flexibility of funding the contract and ability to adjust premium-payment plans, which, for those armed with the appropriate analytics and modeling tools (such as the Company), maximizes return. Aggressively priced UL contracts provide even higher possible gains because of lower mortality and higher lapses being assumed when determining the price of the policy.
However, minimally funded UL contracts provide little cash for paying ongoing charges, which increase with the age of the insured party.
Convertible Group Insurance Policies
Another market for life settlements are convertible group insurance policies that can be converted into individual policies, assuming that the individual has the right to convert the policy and sell it to a third party. Considerations that providers make for convertible group policies are similar to considerations made in the purchase of convertible term policies. Market Size According to the Life Settlement Association, the life settlement industry was a $2 billion (policy face value) industry in 2001 and grew to a $10 billion industry in 2005. It experienced continued growth since 2005 and was estimated to be a $16 billion industry in 2008.
Scope of Market
Today life settlement transactions provide liquidity to seniors to the tune of over $7 million a day and over the past 4 years have provided $8 billion in liquidity to seniors. ( http://www.thevoiceoftheindustry.com/ )
Until 2008, prices paid for “life settlements” were rising due to increased competition and availability of credit to purchase policies, as well as the ability to more easily securitize purchased insurance policies. However, due to the recent credit crunch, both credit extended for purposes of purchasing policies as well as the ability to securitize insurance policies have been reduced, and therefore the prices paid for life settlements have declined. This creates better returns for providers of life settlements that currently have the funds to purchase policies and continue making premium payments on purchased policies.
According to the American Council of Life Insurers, (Life Insurers Fact Book 2009), there were $19.1 trillion in life insurance policies in force in 2008. Also, in 2008 insurance policies worth $3 trillion were purchased by consumers. Of the $19.1 trillion in life insurance policies in force in 2008, $10.2 trillion were individual life insurance policies. Of the $3 trillion in life insurance policies purchased in 2008, $1.84 trillion were individual life insurance policies and of these policies, permanent life insurance contracts constituted over $490 billion in policies purchased.
In 2008, insurance industry revenues due to life insurance premiums amounted to $640.35 billion and payouts in the form of benefit payments amounted to $577.8 billion. In terms of the number of contracts, there were over 9.9 million individual life insurance policies purchased in 2008 of which 5.6 million policies were permanent term individual life insurance contracts.
The average value of an individual life insurance contract in 2008 was $183,000. Life settlement transactions are almost exclusively employed in an estate planning, business transfer, corporate structuring, risk management, or tax optimization context. Life settlements typically have a face value death benefit of no less than $100,000.
The Wharton Business School indicates that more than 20% of insurance policyholders over age 65 have policies whose intrinsic economic value exceeds cash surrender value. Income Sources Current and future income will be derived from:
1) A managed pool of life settlements proprietary to the Company;
2) Provision of servicing [mortality tracking, premium processing and claims management] for other life settlement providers in the future, and;
3) Licensing and usage revenue generated from our proprietary modeling and valuation platform, primarily for asset acquisition and pricing. If properly managed, life settlement pools can yield in excess of 15%.
The management of life settlements entails measuring and management of multiple aspects of financial and operational risk. In order to maximize the return and reduce the risk profile of a group of policies, several defining attributes need to be constantly monitored. Policy groups need to be built initially by balancing a broad range of risk variables and then adjusted to keep risk metrics in acceptable limits.
The Company will service its own portfolio and may offer servicing to other entities engaged in the life settlement business. As our servicing structure is assembled and refined, we will make use of best-in-breed assets servicers, as third party providers and as consultants to our in-house servicing unit. Further, there will be cases where independent servicing is required in design of certain securitizations of portfolio segments.
Proprietary Modeling Foundation
While the Company’s proprietary modeling and valuation platform is currently used for internal processes, we may consider offering this and other of our skill-sets, beyond servicing, to other market participants in the future. Our platform and analytical focus incorporates a first class policy purchase capability, such that we may provision this to other groups or entities looking to enter into the market.
Prospectively, this would be done on a managed account agreement basis with the Company, to provide a vertically integrated suite of purchasing, managing and servicing of a customer’s portfolio for enhanced revenue and income. Further, application of the Company model to index structures, pricing models and other market participant platforms used for hedging in the pension, life and annuity sectors is clearly a future possibility, and is currently a burgeoning activity in money center markets globally.
ALSO will Aid in the maturation of the life settlement segment by constantly educating and discovering new analyses that will help identify and manage volatility in the market. The Company’s platform is the culmination of that dedication and is anticipated that certain of research findings may be able to be protected as intellectual property to the Company.
Government and Industry Regulation
When the life settlement market was first established, it was sparsely regulated. Due in part to abuses within the industry, which were well-publicized, the federal government and various states moved to regulate the market in the mid-1990’s. These regulations generally took two forms. One sought to apply consumer protection-type regulations to the market. This application was designed to protect policyholders and purchasers. Another sought to apply securities regulations to the market, which was designed to protect purchasers.
Various states have also used their insurance regulations to attack instances of insurance fraud within the industry. Consumer Protection Licensing . The consumer protection-type regulations arose largely from the draft of a model law and regulations promulgated by the National Association of Insurance Commissioners (NAIC). Approximately 45 states have now adopted some version of this model law or another form of regulation governing life settlement companies in some way. These laws generally require the licensing of providers and brokers, require the filing and approval of settlement agreements and disclosure statements, describe the content of disclosures that must be made to insureds and sellers, describe various periodic reporting requirements for settlement companies, and prohibit certain business practices which are deemed to be abusive. Securities Regulations .
Some states and the Securities and Exchange Commission (“SEC”) have attempted to regulate life settlements as securities under federal or state securities laws. On July 22, 2010, the SEC issued a Staff Report of its Life Settlement Task Force. The Staff recommended that certain types of interests in life settlement be classified as securities. The Commission has not taken any position on the Staff Report, and there is no indication if the Commission will take any action to implement the recommendations of the Staff Report. The Company believes that the matters discussed in the Staff Report do not impact on the Company’s current business model.
With respect to state securities laws, 48 states treat life settlements as securities under state laws, although some states exclude from the definition of security the original sale from the insured or the policy owner to the provider. A majority of states include life settlements in their statutory definition of security, either directly in that definition, or as part of the definition of investment contract. We have endeavored to structure our activities to reduce the risk that our activities would be treated as securities under state or federal law, and, to date, no state or federal regulatory body or private litigant has asserted that our settlements are securities. Insurance Regulation .
Intellectual Property
Trademarks, trade secrets, copyrights and other intellectual property rights are important assets. The Company has filed with the United States Patent and Trademark Office an application for registration of the trademark “Absolute Life Solutions” to register this and possibly other trademarks and service marks, both domestically and in foreign jurisdictions.
About Absolute Life Solutions
Absolute Life Solutions’ distinctive approach provides liquidity to seniors in their latter years and maximizes return for its shareholders. By securing only high-quality policies and employing a proprietary valuation platform and best-in-class portfolio and management techniques, Absolute seeks to optimize policies’ inherent value and minimize risk.
An emphasis on proper valuation. Since data supplied by policyholders determines mortality projections and the subsequent probability modeling of policies and pools, incorrect data or faulty assumptions will result in unreliable valuations and poor investments. Absolute’s experienced team brings a deep understanding of mortality patterns comprised of a combination of actuarial, financial, and behavioral variables. This is manifested first in a focus on data quality. Policies are subject to triple-checks for accuracy before and after purchase and packaging for sale to institutions. Redundant systems safeguard the integrity of the data.
Second, Absolute’s understanding of mortality patterns has led to the development of a state-of-the-art modeling platform. Current industry pricing models focus on the price of insurance, rather than the value of a policy as an investment. Absolute’s analysis have been tested through millions of simulations to cover a wide variety of market swings and changes. More reliable valuations can better identify bargains and avoid overpriced assets, which makes the platform a risk management tool as well.
Advanced portfolio management techniques. The firm takes a systematic, data-driven approach to its portfolio management, giving careful attention to latent risk factors such as longevity risk, credit risk, concentration risk, and legal challenges. Considerable resources are devoted to mitigating these risks, including risk-weighting variables embedded in the proprietary modeling platform that indicate whether risk matrices are within acceptable parameters.
The Absolute Life Solutions Team
Absolute’s management is comprised of seasoned professionals, each with over 15 years of industry experience building extensive networks on the life settlement brokerage side and developing complex financial models. They have been involved in nearly $3 billion worth of life settlement transactions, closing over 90% of the deals sourced from a vast network of financial advisors. An advisory board is comprised of veteran life settlements, insurance, and investment professionals. Investors in the company are afforded the opportunity to partner with experienced industry professionals to gain exposure to an attractive alternative asset class.
President – Moshe Oratz was previously the President of Cambridge Life Settlements LLC, a privately held life settlement intermediary and has been involved for more than five years in various aspects the life settlement industry. Mr. Oratz and entities with which he was affiliated have been involved in the transaction related to senior life insurance policies having a face value in excess of $1 billion. He attended Touro College and Yeshiva University.
Chief Financial Officer – Avrohom Oratz was previously the Corporate Controller of Platinum Human Resource Management, a full-service human resource services firm with offices in New York, Florida, Alabama, and California. As Controller, Mr. Oratz designed and implemented a comprehensive fraud protection program, with processes and procedures that protect clients’ financial integrity. Mr. Oratz played a key role in the establishment of Normandy Harbor Insurance Company, specializing in Workers’ Compensation coverage and comprehensive Risk Management Programs.
Board of Directors and Management Advisory Board
Moshe Oratz was previously the President of Cambridge Life Settlements LLC, a privately held life settlement intermediary and has been involved for more than five years in various aspects the life settlement industry. Mr. Oratz and entities with which he was affiliated have been involved in the transaction related to senior life insurance policies having a face value in excess of $1 billion. He attended Touro College and Yeshiva University.
Abraham Lowy has an extensive law practice representing corporate real estate investors in the acquisition, development, and leasing of commercial and retail properties, including office buildings, condominium developments, shopping centers, nursing homes, and warehouses. Mr. Lowy also counsels clients in matters pertaining to banking and financing transactions, including mortgage loans, mezzanine loans, construction loans, and credit facilities. Mr. Lowy received his JD from Brooklyn Law School, and is admitted to the bars of the states of New York and New Jersey.
Chaim Loeb has been an insurance broker since 1994. He serves as the President of Loeb Insurance Brokerage and Cornell Insurance Services. He holds Life and Health insurance licenses from the State of New York, and is a graduate of the Rabbincal College Zichron Moshe of New York.
Sy Stern, Esq., CPA - Currently a Managing Member of the Stern Professional Group LLC, a consulting group focused on complex tax and legal matters, and a partner in the law firm of Stern and Stern LLP, Stern began his career in private tax and accounting in 1998. In 1999 he joined the accounting firm of PricewaterhouseCoopers LLP in New York where he quickly advanced to manager. In 2006, he began work as a Tax Manager for Ernst & Young, LLP and in 2007 he became a partner in the law firm of Polter and Stern, LLP. During his career he has also functioned as chief financial officer for BC-XE, LLC, a real estate development joint venture. Stern, 38, earned his J.D. at New York Law School and his MBA in Accounting at Pace University – Lubin School of Business. He is a member of good standing in the New York State Bar Association and the New Jersey State Bar Association. He is also a Certified Public Accountant licensed in the State of New York.
Contact:
45 Broadway
6th Floor
New York, NY 10006
Phone: 212-201-4070
info@absolutels.com
InvestorRelations@absolutels.com
About Life Settlement Transactions: A life settlement transaction typically occurs when an individual of advanced aged no longer wishes to pay, or is unable to afford, a rising premium payment on their life insurance policies. When faced with the difficult choice of expending diminishing cash resources to make premium payments or simply allowing their policy lapse, the insured senior now has the opportunity to sell the policy for an immediate cash payment. Current life settlement transactions are allowing the individual to receive an average of 8 times the surrender value for an asset that was previous illiquid and those they may have had to abandon. More and more seniors are becoming aware of the potential of these transactions creating a growing supply of policies available for purchase by organization such as Absolute Life Solutions, Inc.
About Absolute Life Solutions, Inc. Absolute Life Solutions, Inc. offers a distinctive approach that provides liquidity to seniors while creating a stable alternative asset class for investors. By securing only high-quality policies and employing a proprietary valuation platform and best-in-class portfolio and management techniques, Absolute seeks to optimize an insurance policy’s inherent value and minimize risk. For more information about Absolute Life Solutions, Inc., please visit our website at www.absolutels.com.
Forward Looking Statements: Some statements in this profile may be “forward-looking statements” for the purposes of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in our public filings with the Securities and Exchange Commission. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. We undertake no obligation to update these forward looking statements.
ALSO Disclosure: Pentony Enterprises LLC entered into an investor relations consulting and market awareness contract on January 11, 2011. The Company has agreed to compensate us six thousand dollars for coverage. We have taken no free trading shares. To avoid all potential conflicts of interest, we never sell shares into the open market during an active market awareness or investor relations program. This means that as we release new information about a particular client company either on our site or otherwise authored by us, you can be confident we are not selling shares at the same time. We hold only restricted shares and will not register or sell these shares at anytime during the promotional period. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
