MEMPHIS, Tenn., April 23, 2013 /PRNewswire/ -- J. Kevin Adams, Chief Executive Officer of Green Ballast Inc. (OTCBB: GBLL), today provided the following letter to shareholders.
We have achieved much in this past year, and we are very excited and optimistic about our future. But there are still challenges ahead of us. The sales cycle in lighting is 3 to 9 months which is causing a strain on our current cash resources. We have started to build the sales pipeline which should help address this issue going forward. In addition, we have sought out and are in discussion with strategic investors who we also expect to be significant customers of Green Ballast. The challenges of managing a growing business are formidable, but one fact is clear: the hard work that everyone at Green Ballast has invested in the company is now producing tangible results.
Below is a brief list of the highlights of our operations over the last 12 months.
- 4th Quarter 2012 revenue was $639,003. Our products are being accepted by our customers and the sales pipeline is continuing to grow with new and existing customers.
- We recently completed a total lighting project for 11 Shelby County, Tennessee Schools. In addition to incorporating its patented daylight harvesting fluorescent light ballasts, Green Ballast performed a complete energy efficient lighting upgrade on the 11 schools that included new lights in the classrooms, hallways, offices and some of the gyms and auditoriums. We believe that the school market could be a large one for our ballasts. We are targeting markets in Indiana, Texas, New York and New Jersey for additional sales to school districts.
- Belz Enterprises ("Belz"), a leading US real estate developer, owner and operator for over 70 years, installed vapor tight florescent fixtures equipped with Green Ballast's patented fluorescent light ballasts in a structured parking garage facility in Memphis, Tennessee. The new fixtures are expected to reduce electric lighting usage in the facility by over 50% per year, with Belz receiving a payback on its investment in less than 3 months for fixtures which have a 10 year life expectancy.
- Talcott Realty, a Real Estate Investment Trust with Class A properties across the United States, is implementing a lighting retrofit equipped with Green Ballast's patented daylight harvesting fluorescent light ballasts for the 420,000 square foot Thousand Oaks office park in Memphis, Tennessee, which is managed and leased by CB Richard Ellis Memphis. Work has now commenced and this project should be completed by summer 2013.
- Long Island Power Authority ("LIPA") has qualified Green Ballast's daylight harvesting ballast for a significant rebate. This rebate significantly reduces the cost of purchasing and owning our ballasts and we believe will be a big driver for sales going forward. We have begun projects on Long Island, New York, and expect to have continued sales traction in this region.
- The company formed working/strategic relationships with 2 large national electronics contractor groups. These 2 companies have seen the value of including Green Ballast's products in their product offering set, and have specified Green Ballast in dozens of jobs in Long Island totaling thousands of our daylight harvesting ballasts. These jobs are starting to be released now by LIPA.
There are many more reasons to be optimistic and excited about our future. Several fixture manufacturers have approached us about private labeling our ballasts and the response at various industry trade shows has been tremendous. New customers often test our ballasts in one or more locations prior to placing an order with us. These tests demonstrate the energy and cost savings of installing our ballasts. We have completed tests for Fortune 500 companies in the following industries: banking, logistics, pharmaceuticals and real estate management. Our goal is to initiate a nationwide roll-out of our products for one of these Fortune 500 companies.
Despite facing some initial headwinds, you can see we have started to gain market traction and success. Green Ballast is on the right path and with the proper capital base, its future is bright. The demand is there. The customers are there. The company and its products provide real savings to its customers, and the message is getting out there.
If we continue to execute upon our business plan, we expect that our revenues will continue to grow in 2013 and beyond.
Thank you all for your support.
J Kevin Adams
Chief Executive Officer
This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements for Green Ballast reflect current expectations, as of the date of this letter, and involve certain risks and uncertainties. Forward looking statements include statements herein with respect to the company's successful execution of its business strategy. Actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results are described in form S-1 filed with the Securities and Exchange Commission on April 12, 2012.
SOURCE Green Ballast Inc.