SPITwSPOTS

SPITwSPOTS offers the fastest most competitively priced residential and commercial internet services available on the Southern Kenai Peninsula. SPITwSPOTS offers its customers a variety of setup options, to cover the cost of installing and maintaining the Client Premises Equipment (CPE) installed at the client's location. This equipment is the medium through which SPITwSPOTS provides internet service, from one of many access points ultimately linked back to our primary data center in Anchorage. Our main tower in Homer and our new tower in Anchor Point are serviced by dedicated fiber-optic connections, linking our network and customers to the rest of the world with the highest quality internet connection available. Averaging an increase in gross receipts from 25% to 40% annually, SPITwSPOTS has struggled since inception to keep pace with demand for the products and services it provides. As we transition from a truly small business into a more medium-sized corporation, with commensurate opportunities and obligations, our need and ability to utilize capital has expanded as well. Our current uses for capital are in three main areas: First and foremost, we are working to obtain long term lease agreements or direct ownership of geographically significant locations where we can use or install tower space to both improve and expand our network coverage. We have already secured such a lease in downtown Anchor Point, and are erecting a 76' tower with a fiber backhaul at that site. This tower's access to an additional fiber line connection will add both redundancy and robustness to the network as well as significantly increasing our coverage area. New areas covered include Anchor Point, Nikolaevsk, North Fork, and the Caribou Hills. Owning tower space offers advantages beyond simply expanding our service area. Towers and tower space are a form of real estate that is always increasing in demand. Such investments are a strong, long-term addition to SPITwSPOTS' balance sheet. SPITwSPOTS' second major need for capital is to upgrade our core infrastructure in order to continue to keep pace with our ever increasing customer count and continued demand for faster (more expensive) internet service. Our installation crews and staff are also in need of more reliable and efficient equipment, thus allowing us to perform more installs and acquire more customers. These include upgrades to our backup power equipment at critical nodes, more reliable service vehicles for survey and install crews, advanced safety equipment and training for our install crews. Third, in the past, SPITwSPOTS did not have access to borrowed capital at competitive interest rates. Hence, SPITwSPOTS has a manageable but unnecessary sum of high-interest debt that needs to be either paid off with new investor capital or refinanced via lower interest debt instruments. By reducing its debt servicing obligations SPITwSPOTS will free up capital to expand service and build up current and strategic assets, ultimately resulting in higher profits and an increased value for our investors. Beyond the current capital needs listed above, SWS has several significant opportunities which require new capital in order to fully exploit. Our new contract with ACS and our relocation to their Anchorage Data Center has allowed us to expand into territory almost anywhere in the state where ACS' fiber runs. This is a quantum leap forward in terms of the scope and potential for growth of our company. If we can manage the challenges of growth and pace ourselves accordingly, we stand to become one of the premier WISPs in the State of Alaska. Expansion into areas like Kenai, Soldotna, Kasilof, Kodiak, Fairbanks even Anchorage is now only a simple step away. To help with these endeavors SPITwSPOTS is proud to introduce our new Chief Information Officer Josh Reynolds. Josh is an experienced IT professional with over 15 years in the industry. He has worked and contracted for companies in the Wireless Internet Service Provider industry, financial markets, major computer suppliers, and Tier 1 network providers. He has also helped develop multiple communications and GPS products for various industries, and has served as a Department of Defense SIPRNet Administrator with a DoD Secret Clearance. He is also a retired Sergeant with the United States Army, and a Veterans Affairs Registered Combat Veteran. It's hard to contain our excitement at the opportunities we now have to grow our company. We are very proud of what we have been able to deliver to our investors, lenders and customers in a very short time. We have every reason to believe that this coming year will be a great one for the history books, and we at SWS can't wait to make it happen.