ERF Wireless, Inc. is a fully reporting public corporation that specializes in providing secure wireless and broadband product and secure service solutions to banking and commercial clients on a national and international basis. Its principals have been in the network integration, triple-play FTTH, IPTV content delivery, and Internet banking and encryption technology businesses for more than 20 years and have constructed encrypted, wireless broadband networks, fiber-to-the-home projects, as well as secure Internet banking solutions for hundreds of banks across America.
2007: Highlights
- The company revealed to the stockholders its overall business strategy for the banking industry of combining upfront BranchNet construction revenue with longer term BankNet, WiNet, and product recurring revenue to produce exponential revenue growth with a very conservative market penetration of the US financial sector.
- The completion of the acquisition of assets and operations of three Central Texas WISPs - Momentum Online, TSTAR Internet and Total Access - added approximately 6,000 customers and more than $2.5 million in annualized revenues. These acquisitions cover eight counties in Central Texas and give the company a footprint covering 4,000 square miles when integrated with the company's existing Central Texas WiNet and US-BankNet System. These acquisitions also provide ERF Wireless a target market of more than 25,000 businesses, over 600,000 residents and more than 42 regional and community bank charters aggregating approximately 500 branch locations. The acquisitions also give the company access to 12 towers, in addition to 78 towers that the company already controls across the state.
- The completion of more than $4 million in cash equity investment from accredited investors during the third quarter and early fourth quarter of 2007.
- The completion of $10 million in funding commitment from BancLeasing Inc. for funding the company's US-BankNet System.
- The completion of $10 million in funding commitment from Dutchess Capital for funding the company’s growth.
- The completion of a total of $3 million in funding commitment from Agility for lease financing of WISP equipment.
- The company paid off in cash the remaining convertible debenture entered into with Global Capital Funding Group L.P. The company now has no outstanding convertible debentures other than the conversion feature under its ongoing E-Bond investment program.
- The company announced that its patent-pending ERF Wireless CryptoVue(TM) Network Security Appliance would be marketed worldwide as a stand-alone VPN security device for encrypting wired and wireless wide-area networks. The patent-pending CryptoVue Network Security Appliance has successfully completed a testing program conducted by Motorola in its Schaumburg, Illinois, labs to validate its use with the MOTOwi4 wireless broadband solutions in applications requiring secure wireless communications. Under a Product Affiliation Agreement recently signed with Motorola, ERF Wireless has made its CryptoVue Network Security Appliance available to Motorola and Authorized Motorola Canopy Solutions Providers wanting to deploy secure wireless communications networks for non-financial industries. Both companies are now referencing and cross-linking the CryptoVue Network Appliance on their respective websites.
- The continued deployment of US-BankNet in Texas to provide the opportunity to gain market share of over 250 of the more than 1,300 financial intuitions in the state. The rollout of US-BankNet in Texas complements the deployment of US-BankNet already underway in the state of Louisiana.
- The company, through an affiliate, signed a contract to acquire the largest transmission tower facility in Galveston County, Texas, to serve as the transmission hub for most of the company's banking and wireless broadband networks in the southeastern part of Texas. This 1,120-foot-tall tower and associated real estate is situated in an area south of Houston and provides a direct line-of-sight to a circular ground level footprint 70 miles in diameter that includes all the cities in three counties, including a population base of more than 5 million people.
2008: Looking Forward
- Based on its existing sales pipeline, the company expects there will be an opportunity to close a number of significant BranchNet, BankNet, WiNet and product contracts with banks and other financial institutions in multiple states.
- Marketing of the company’s product and services will be expanded from the current regional base to a multi-regional basis and beyond.
- The marketing of CryptoVue will be expanded by both the company and the company’s previously announced marketing partner to multiple industries and applications. Additional marketing channels will be developed and implemented.
- Additional states will be added to the company-owned BankNet footprint.
- Master tower usage contracts will be negotiated in additional states.
- Additional WISP network acquisitions will be completed adding significant new profitable recurring revenue to the company revenue base while at the same time supporting the growth and maintenance of the banking networks.
- Based on the successful completion of the El Dorado FTTH contract in January 2008, additional significant FTTH contracts are anticipated in 2008.
- The movement of the company to a national market listing as soon as the share price meets listing standards.
ERF Wireless is in the right industry with the right proprietary product at the right time.
