On January 12, 2017, Robert Gruder resigned as the Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer of the Company. Also on January 12, 2017, both Mr. Gruder and Wayne Thomas resigned from the Company’s Board of Directors. On January 16, 2017 Victoria Rudman was appointed as Chief Financial Officer, Secretary and Treasurer of the Company, as well as to the Company’s Board of Directors. Ms. Rudman has spent most of her career in Fortune 50 global investment banks and retail brokerage firms. She has also served several public and private companies as Chairman, Chief Executive Officer, Chief Financial Officer, Treasurer and Secretary. As part of the transition to new management, on January 25, 2017 Robert Finigan resigned from his position as President of the Company. Additionally, Stuart Posner resigned from his position as a Director on February 1, 2017. Huey Long was named Chief Executive Officer on February 2, 2017 and was named as a Director of the Company to fill the seat on the Board of Directors vacated by Mr. Posner. Mr. Long is a seasoned multi-channel retail and global sourcing executive and turnaround expert. He was responsible for general merchandise operations in his capacity as a Senior Vice President at Walmart Stores, Inc. and as General Merchandise Manager at Walmart’s Sam’s Club. Previously, Mr. Long was an Executive Vice President of Radio Shack Corp., where he was part of the turnaround team. He later became a Director of Radio Shack China. Mr. Long was also responsible for Amazon.com’s global private brands and consumer electronics retail buying operations. William Singer remains in his position as Executive Vice President of Sales and Marketing of the Company, and was named as a Director on March 1, 2017. Mr. Singer is a Multi-Channel Retail Expert, an entrepreneur and investor, and has launched several successful businesses and products in retail, transportation, eCommerce, mobility, and services.
Digital Imaging Market
Previous management of the Company was not able to raise sufficient capital to complete its business plan, or fulfill the commitments to its licensing partner, and enter the Digital Imaging market. As a result, the Board of Directors has voted to cease operations in this market and will not pursue the activities under the trademark license agreement, pursuant to which the Company planned to design, manufacture and sell branded action cameras, 360 cameras, dash cameras and still cameras, as discussed in the Company’s Form 8-K as filed on September 22, 2016. The details associated with terminating this agreement have not been finalized and the Company could be subject to a termination fee.
Mobeego and the Mobile Power Market
Moving forward, the Company will focus on sales of the Mobeego brand emergency cell phone battery and other mobile power supply products we plan to source from a previously signed strategic alliance with Ascenda Corporation, a global sourcing and logistics company. We are seeing increased interest in the Mobeego product. The Mobeego emergency cell phone battery provides an extra 20-40% boost of power to a cell phone without having to be tethered or charged. The batteries have a 10-year shelf life. On July 11, 2016, the Company agreed to purchase Mobeego’s parent company, Batterfly Energy, Ltd. for an initial payment of $500,000 to the Batterfly sellers, with $250,000 being due on October 6, 2016 and $250,000 being due on February 13, 2017. The Company failed to make the payments as required and on January 11, 2017 we received a default notice from the sellers. We are currently in negotiations to cure the default and are optimistic we will be able to reach an agreement; however, there is no guarantee we will be able to do so. We plan to keep shareholders updated on our negotiations.
The Mobeego brand launched in November 2015, is available within 16 different countries. The Mobeego product is an affordable one-time use battery that plugs directly into one’s mobile device, iPad, or action camera. The award winning design makes it wireless and disposable.