During April 2000, the Company finalized the acquisition of Beach Access.Net,
Inc. (Beach Access) and on December 1, 2000, the SWOMI system was up and able to
operate in Myrtle Beach, South Carolina with over 800 rooms under the SWOMI
umbrella. The acquisition was funded with 1,750,000 free-trading shares of
Company stock. This acquisition completed the Company's goal of providing a
means for remote monitoring of pollution treatment sites and expanding its
internal technology capability. Beach Access is operated and managed as a
wholly owned subsidiary and is charged with the mission to be the technology
group of the Company and a leader in the wireless Internet access market.
In connection with the Beach Access purchase, the Company recorded $226,010 of
goodwill, which is being amortized over five years. For the nine months ended
September 30, 2000, $22,600 was recorded as goodwill amortization.
In connection with the initial acquisition of BeachAccess.Net, Inc., the Company
invested 8,600,000 shares of restricted common stock in BeachAccess.Net, Inc. to
acquire other related business assets and operations. In connection with these
acquisitions, Beach Access.Net, Inc recorded goodwill of $323,756. For the nine
months ended September 30, 2000, $19,167 was recorded as goodwill amortization.
In connection with the Beach Access acquisition, the Company issued to the
former owner and certain employees of Beach Access.Net, Inc. 8,000,000 shares of
unrestricted and restricted common stock as a signing bonus and additional
compensation.
As part of the operating plan for expansion, Beach Access made the following
acquisitions. In May, Beach Access acquired the Internet servicing rights to
approximately 1,300 resort customers. The cost for these rights to provide
Internet service for a 12 month period was 3,200,000 shares of restricted common
stock. The Company negotiated with three different apartment/condominium
builders to be the sole provider of Internet service for their respective
facilities. In addition, Beach Access acquired Revcon Technologies, Inc., a
company in the wireless systems industry and acquired Alliance Computers, LLC, a
company in the computer networking, programming and wireless connectivity
industry. Neither of these companies had significant operating activity before
or after they were acquired. These assets were purchased with 1,000,000 shares
of Company stock.
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