D-man, here's the latest. What do you think?
FROM THE CEO
Dear Investor:
Many times before, I have used this forum to keep you, our loyal investor, informed of the many efforts we are making on your behalf to continue to build and strengthen Equity Technologies & Resources, Inc., and our viable Verified Prescription SafeguardsTM system that is protected by a provisional patent.
Although you have come to rely on periodic updates through this forum and via timely news releases issued through the normal channels, for the past several weeks you may have noted a lack of communication.
With good reason. Our primary efforts have been two-pronged:
First, we have focused on legislation in Kentucky, which was selected for several reasons. (a.) The KASPER (Kentucky All-Substance Prescriptions Electronic Reporting) system was already developed. (b.) The 2002 Kentucky General Assembly was in session. (c.) Management had already been an active participant in legislative efforts to create a Kentucky e-Health Network.
The outcome of our efforts in the 2002 General Assembly was to pass emergency legislation in a unanimous, bi-partisan vote by both chambers and signed by the governor. This legislation directs the Governor’s Office for Technology, in consultation with the Cabinet for Health Services, to apply for a grant from the $2 million U.S. Department of Justice “Harold Rogers Fund for Prescription Drug Diversion Monitoring” to conduct a two-county study. The VPS system will be part of this study.
After successfully completing this study, our VPS system would be considered the national standard for real-time prescription drug diversion monitoring programs — and made available to not only those 15 states with current administrative regulations to monitor prescriptions*, but to all 50 states, the District of Columbia, and U.S. Territories.
This is the exact scenario on which we based our business plan.
The next step, now, is to obtain the funding. This is not an immediate or automatic step for two reasons:
1. Multiple states have been encouraged to apply for Federal funding; and
2. Federal funding is based on a “request for proposal” (RFP) process.
Let me explain each.
First, the Department of Justice “Harold Rogers Fund” was established with the intent to attract multiple state applications — not to fund just one concept. As such, each proposal for an “enhancement” of current systems (such as Kentucky’s KASPER system) will receive a $220,000 grant. Each proposal for a “new” program will receive $180,000.
Second, the Federal RFP requirement supercedes the Kentucky legislative “emergency” provision. This means there is an established, Federally mandated process that must be followed. Each of the steps had its own timetable — and its own separate set of requirements for success.
What is next?
Our two-point plan is:
1. Focus on the Kentucky Governor’s Office for Technology to ensure the RFP is compliant with the Department of Justice Guidelines.
2. Maintain positive relationships with the various Federal, state, and local entities that have a vested interest in the VPS system.
We will continue to work with State governments, particularly those in which there is existing legislation or in which legislation was introduced and passed. Efforts will also be continued in those states in which legislation was introduced but did not pass. In states such as the latter, the education process concerning privacy and similar issues should not be as great in the future. Once the other states can see what the Kentucky pilot project produces, we believe we will experience more readily acceptance of our healthcare solutions.
Our second major focus has been on external funding from the private sector:
We are in the process of securing committed resources that are sizeable investments. These will allow the company to move forward quickly on many fronts. In today’s economic climate this is a long, arduous task, but we are making progress and have many options open to us.
We are also negotiating with potential partners to form alliances, discussing the possible acquisition or merger with other revenue producing entities, and exploring the availability of licensing technology from, and to, others.
The VPS website will soon be completed. It will be informational only. The Company believes that to disclose anything further would not be prudent.
We are committed to our investors and their financial interest in our company and we are working diligently to fulfill their expectations.
Further, each day there is national news of increasing addiction and diversion of prescription drugs, the rising costs of law enforcement to combat this epidemic, and the devastation to human lives and communities it causes. This environment, in turn, increases pressure to move the company forward quickly because we are more convinced than ever that the VPS system holds the solution to these problems — and the benefits to society are immeasurable.
You may be assured that your management team is laser-focused on the success of Equity Technologies & Resources, Inc., and its Verified Prescription Safeguards system, and we are working hard every day to achieve that success as quickly as possible.
Best regards,
[x]
Frank G. Dickey
Chief Executive Officer
Equity Technologies & Resources, Inc.
1050 Chinoe Rd., Suite 304
Lexington, KY 40502
859-268-4446
Contact me. |
