WASHINGTON, Jan. 2, 2013 /PRNewswire/ --
Dear HPC POS System, Corp. Shareholders,
This letter is to update you on the current status of HPC POS System, Corp. (dba Mohan Corporation), (Pink Sheets: HPCS), and its continuing efforts to grow into a highly profitable company with a resulting increase in shareholder value. House of Mohan Corporation merged with the public company HPC POS System Corporation in 2009 when Mohan was still a viable business. We pursued the public market to raise expansion capital. However, from 2010 to September 2012, HPC struggled through management conflict of interest issues. Consequently, HPC was downgraded from OTCQB to OTC PINK. By the end of June 2012, it became apparent that the perception of operating a public company to raise capital was not possible with the current team.
Public Structural Changes: Once I re-engaged to get back on track for product orders, by June 2012 my distributors had placed orders for three containers of incense. In August 2012, I started negotiating with new sources of advisors on governance and the importance of filing practices that are needed to operate HPC POS System, Corp. As my understanding of what is required of a public company increased, I made a decision not to release any more financials until previously unrecorded debt and properly stated expenditures were corrected. Consequently, my consultants, advisors, lawyer, company officer and auditor resigned because of what appeared as misrepresentation. HPC was not able to submit its financial and management disclosure information in a revised 10-K, which resulted in HPC being downgraded to OTC PINK. However, changes have brought about a positive transformation. HPC was able to re-establish its focus and begin to bring the business structure back and thus realize the impact Mohan incense had on its contacts and distribution channels. The organization of distributors of House of Mohan who represented our rapid growth nationwide from 1997 to 2008 is back in place. We have formulated a new and exciting business plan to improve our ability to gradually stabilize a business structure with innovative approaches to distribution and financing.
We are negotiating an engagement with an approved auditor to provide accurate financial statements, as well as a CFO on an as needed basis to assist HPC in becoming audit ready. Corporate structural changes and adding alternative financing services to empower our distributor's ability to prepay container orders will reduce our overall operating cost. It is our goal to grow and provide creditable and audited information to support our shareholder's ability to make sound decisions on reliable information provided by HPC POS System, Corp.
It is our intention to operate HPC as an OTC PINK company temporarily while the new auditor and accountant develop and implement new financial and reporting structures for HPC. We will re-instate our 2012 quarterly 10-Ks and 10-Qs soon, and start filing audited financials to become current with SEC and seek to become QB again.
Product Financing, Distribution and Trademarks: Public as well as private funding opportunities for the financing are currently being negotiated for future Mohan incense container purchase orders. Ashford Finance LLC renewed its manufacturer financing contract with Mohan, EnCap Inc. was engaged to create financing for our distributors, and Robert A. Shapiro of Thompson Coburn LLP will update product trademarks. We expect HPC to be profitable, and project that the company will generate over the next six months reasonable growth, and we expect to operate profitably for the foreseeable future. HPC (Mohan) completed the development of new product packaging and marketing displays to accommodate its distributors' sales campaigns to resupply over 200,000 retail outlets with our brand name incense products (www.mohanincense.com). These are a few of the recent events that we believe will lead to positive results. A number of other activities are in progress and being negotiated. We will keep you apprised as they develop.
In closing, I want to thank you for your patience and ongoing support of HPC POS System, Corp., and assure you that the entire team of new management and promoters are dedicated to making our company a great success. I believe we will finally reach our revenue goals and generate earnings which we have started to achieve. Our current projections are based on prospective orders which historical data demonstrate to be possible. With established distribution channels and projected order levels, we are confident of our ability to recapture the market share that House of Mohan had dominated over the past 17 years.
With kindest regards, Melvin W. Coles, President Marketing/Public Relations, Email: email@example.com
About Mohan Corporation. www.mohanincense.com - Mohan Corporation is an international manufacturer and distributor of fragranced oils and incense. The company dates its origin to 1970 and supplies over 200,000 wholesale and retail outlets throughout the United States. The company has registered trademarks on over 70 fragrances and packaged designs. Mohan incense is a leader in the industry, creating top quality oils and incense made from charcoal that burns without harsh or harmful residues.
"Safe Harbor Statement" under the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
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