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SPITwSPOTS is currently raising capital to both expand and upgrade our network.  If you are interested in opportunities investing in SPITwSPOTS Inc., and would like more information please feel free to contact us at Accounting@SPITwSPOTS.com or call us at (907) 226-2082.

The following is the Executive Summary from our 2012 Investor Packet. (If you would like a copy of the entire finacial packet please sign and return the NDA and we will provide you with a username and password to the secure Investor Page):

EXECUTIVE SUMMARY

Beginning in April 2005 with a group of friends seeking access to affordable, faster, and more reliable internet service, SPITwSPOTS, Inc. (SPITwSPOTS) has grown quickly and steadily to become the largest Wireless Internet Service Provider (WISP) on the Kenai Peninsula.  SPITwSPOTS provides residential and commercial internet service to users across a wide geographical area, from Kachemak Silo and the area at the head of Kachemak Bay to Seldovia and North to Anchor Point, and of course, Homer.  SPITwSPOTS also provides a host of networking services, including network administration, router management, and customized hardware configuration and installation for large commercial clients. Also included are services such as hi-speed HOTwSPOTS for hotels and marinas as well as secure wireless links for hospitals and other users.

SPITwSPOTS offers the fastest most competitively priced residential and commercial internet services available on the Southern Kenai Peninsula.  SPITwSPOTS offers its customers a variety of setup options, to cover the cost of installing and maintaining the Client Premises Equipment (CPE) installed at the client’s location.  This equipment is the medium through which SPITwSPOTS provides internet service, from one of many access points ultimately linked back to our primary data center in Anchorage.  Our main tower in Homer and our new tower in Anchor Point are serviced by dedicated fiber-optic connections, linking our network and customers to the rest of the world with the highest quality internet connection available.

Averaging an increase in gross receipts from 25% to 40% annually, SPITwSPOTS has struggled since inception to keep pace with demand for the products and services it provides.  As we transition from a truly small business into a more medium-sized corporation, with commensurate opportunities and obligations, our need and ability to utilize capital has expanded as well.

Our current uses for capital are in three main areas:

  1. First and foremost, we are working to obtain long term lease agreements or direct ownership of geographically significant locations where we can use or install tower space to both improve and expand our network coverage.  We have already secured such a lease in downtown Anchor Point, and are erecting a 76’ tower with a fiber backhaul at that site.  This tower’s access to an additional fiber line connection will add both redundancy and robustness to the network as well as significantly increasing our coverage area. New areas covered include Anchor Point, Nikolaevsk, North Fork, and the Caribou Hills.  Owning tower space offers advantages beyond simply expanding our service area.  Towers and tower space are a form of real estate that is always increasing in demand.  Such investments are a strong, long-term addition to SPITwSPOTS’ balance sheet.
  2. SPITwSPOTS’ second major need for capital is to upgrade our core infrastructure in order to continue to keep pace with our ever increasing customer count and continued demand for faster (more expensive) internet service.  Our installation crews and staff are also in need of more reliable and efficient equipment, thus allowing us to perform more installs and acquire more customers.  These include upgrades to our backup power equipment at critical nodes, more reliable service vehicles for survey and install crews, advanced safety equipment and training for our install crews.
  3. Third, in the past, SPITwSPOTS did not have access to borrowed capital at competitive interest rates.  Hence, SPITwSPOTS has a manageable but unnecessary sum of high-interest debt that needs to be either paid off with new investor capital or refinanced via lower interest debt instruments.  By reducing its debt servicing obligations SPITwSPOTS will free up capital to expand service and build up current and strategic assets, ultimately resulting in higher profits and an increased value for our investors.

Beyond the current capital needs listed above, SWS has several significant opportunities which require new capital in order to fully exploit.  Our new contract with ACS and our relocation to their Anchorage Data Center has allowed us to expand into territory almost anywhere in the state where ACS’ fiber runs.  This is a quantum leap forward in terms of the scope and potential for growth of our company.  If we can manage the challenges of growth and pace ourselves accordingly, we stand to become one of the premier WISPs in the State of Alaska.  Expansion into areas like Kenai, Soldotna, Kasilof, Kodiak, Fairbanks even Anchorage is now only a simple step away.

To help with these endeavors SPITwSPOTS is proud to introduce our new Chief Information Officer Josh Reynolds.  Josh is an experienced IT professional with over 15 years in the industry. He has worked and contracted for companies in the Wireless Internet Service Provider industry, financial markets, major computer suppliers, and Tier 1 network providers. He has also helped develop multiple communications and GPS products for various industries, and has served as a Department of Defense SIPRNet Administrator with a DoD Secret Clearance. He is also a retired Sergeant with the United States Army, and a Veterans Affairs Registered Combat Veteran.

It’s hard to contain our excitement at the opportunities we now have to grow our company.  We are very proud of what we have been able to deliver to our investors, lenders and customers in a very short time.  We have every reason to believe that this coming year will be a great one for the history books, and we at SWS can’t wait to make it happen.

Sincerely, 

Aaron Larson, President                                                           

Beauregard Burgess, Secretary

LETTER FROM THE CHIEF INFORMATION OFFICER

Approximately one year ago, I ran into Aaron at a “meeting of the minds” at Ubiquiti Networks Headquarters in San Jose, CA. For several days we were in a room of savvy internet service provider executives, network and radio frequency engineers, consultants, contractors, and one billionaire in Robert Pera (CEO Ubiquiti Networks, and Controlling Owner of the Memphis Grizzlies basketball team).  I knew little about SPITwSPOTS at the time, but after talking to its owner I knew that his company and the things they were accomplishing were special. I was impressed with his technical competence, field knowledge, and ability to relate to his office staff, technicians, and customers.

Fast forward roughly 9 months, and I would meet Aaron again as the WISP (Wireless Internet Service Provider) Engineering Liaison for Performant Networks, a project company of Accedian Networks. After personally delivering some very one-of-a-kind products and support, SPITwSPOTS became the first production network of any kind in North America to add Performant Network's hardware-based resiliency as an integral part of its design; capabilities no other organization has at the time of this writing.

For more information on these companies to those who may be unfamiliar, I have enclosed a brief informational segment at the bottom of this letter, so that you might better understand the prominence that SPITwSPOTS has in the WISP industry.

Several months after visiting Homer, AK and seeing SPITwSPOTS network first hand, I was offered a position at the company. I was both terrified of moving my family away from their home in Kentucky, and energized and excited by the opportunities that I knew would be created by this relationship.

I took the ball, and ran with it.

SPITwSPOTS has emerged as the premier fixed wireless company in Alaska. Between June 2010 and June 2013, the subscriber base has doubled. In the same period, gross revenue has increased from $150,000, to over $400,000. Between 2011 and 2012, net income increased a staggering 103.56%. Year 2013 to this point has had several months of record sales, despite increased CAPEX and OPEX expenditures. The company has seen this massive growth while maintaining an impressive and continuous level of service, reliability, and customer support.

As Chief Information Officer, the task falls upon me to find a balance between sustaining operations and expanding SPITwSPOTS reach in a cost-effective and responsible manner while maintaining existing relationships. Massive growth is of no use to us if we damage our existing customer and vendor relationships. It is important to me personally that the spirit and drive that created and built this company be fostered and continued in the future. 

Internally, we have already started discussions about ways to leverage SPITwSPOTS existing network and technical acumen to advance our services into other vertical markets. Although no final decisions have been made in this regard, interesting ideas have been laid out that could have a drastic positive effect on quarterly revenue with often minimal initial expenditures. Remote monitoring service packages for part-time residents, hosted and remote training venues for various goods and services, service level agreement (SLA) backed network transit services for companies like ACS and GCI, and Department of Defense approved contractor status are ventures SPITwSPOTS may embark on over the next 12 to 18 months. 

Despite our exploratory interest in these and other topics, it is of the utmost importance to us that we continue to strengthen our company internally before we tackle new projects; a weak back cannot carry a heavy load. Employee training in the areas of safety, customer service, and continual and tiered technical education will allow us to be more efficient in day to day operations, and will enable us to carry on SPITwSPOTS outstanding reputation in an organic fashion. 

I feel very honored to be a part of this company, and I am excited about what the future holds. 

Josh Reynolds

Chief Information Officer

 

Additional Information

Ubiquiti Networks was founded in 2005 by ex-Apple engineer Robert Pera. After being unsatisfied with the company and technical direction, he decided to branch out on his own and design his own hardware. The original hardware was quickly adopted by OEMs and WISPs, and by 2007 a wireless world record on the 5.8GHz spectrum had been set in Italy using Ubiquiti Networks products. In 2010 and 2012 Ubiquiti Networks won awards for Product of The Year by the Wireless Internet Service Provider Association (WISPA), and claimed the Manufacturer of The Year titles in both 2010 and 2011. Also in October 2011, Ubiquiti Networks released their IPO at $15.00 a share. Less than 24 months later that stock is now trading above $33.00 a share, with over 10 million products shipped. Ubiquiti Networks has developed several case studies about SPITwSPOTS use of their products.

Accedian Networks is a network hardware provider that was established in 2004, and quickly attracted a customer base among Tier 1 and Tier 2 network providers. Their products extend to over 75,000 cellular base station sites, and has over 120,000 platforms deployed world-wide. In 2011 and 2012, Accedian was ranked in both the Deloitte Technology Fast 50 and Fast 500, which are awards recognizing the fastest growing 500 companies in North America. Performant Networks has developed a web and video case study about SPITwSPOTS use of their products.

 

SPITwSPOTS uses Ubiquiti Networks and Performant / Accedian Networks products extensively in its network, for their performance, cost effectiveness, and carrier class features.



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