Wes, Thank you for your frank and forward comments on the progress of Heartsoft. I watch at times, with much respect to what the owners of FTEL are accomplishing with their resources. It seems that every week or so they release news that they have landed another $2 million contract or have received an additional multi-million financing package (which has a high potential of diluting current shareholder's unless the application of the funds generates LARGE ROIs.)
My response to your comments, in general, is that while HTSF's stock price has been very, very low of late, we have not had the resources (highly paid or HIGHLY experienced individuals) to simply introduce our product to schools and just wait for the big orders --
As a young company with new personnel getting on the job training constantly, we have had to scrap and fight for every inch of forward momentum -- both financial and experiential. However, with the release of Thinkology, Heartsoft will be defining, over the next few months, its differentiating competitive nature - that which will allow our shareholders to own part of a UNIQUE education technology solution for students world-wide -- literally a product solution which is needed badly, and unavailable from ANYWHERE else.
Thinkology has recorded strong short-term and individual school sales. We are not going to release the percentage of Thinkology sales vs. existing product sales until the release of our 10K since most people don't understand the time it takes to penetrate the education market. What I can tell you is that due to this "encouraging response", as I have refereed to it previously, has cause a highly conservative management team to abandon our "old" sale models and methodologies of selling $300-$400 package sales to schools and we have added additional personnel and a HIGHLY experienced National Sales Manager from one of our competitors to LEVERAGE the 40+ school districts who have asked for pricing proposals for district-wide adoptions of the Thinkology Trilogy. These pricing proposals range from under $10,000 to over $100,000 each. These larger orders ARE far, far more profitable for the company than the previous methods of selling.
So, what we have been doing is trading short-term gains for long term potential. Let me remind you that on a comparative basis, for the quarter ending 9/30/97, existing product sales were up over 20%, with NO increase in marketing resources.
Once we announce the FIRST DISTRICT sale of the Thinkology Trilogy, the financial world will begin to understand fully what we have developed in this new product. With an aggressive sales organization, working the most lucrative portion of the school year (3/1->8/15), interest in Heartsoft will begin to increase significantly.
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