AVT, INC. (AVTC) SPO
|Company Name||AVT, INC.|
|Company Address||342 BONNIE CIRCLE, SUITE 102
CORONA, CA 92880
|Employees (as of 9/27/2012)||35|
|State of Inc||NV|
|Fiscal Year End||2/22|
|Shares Over Alloted||--|
|Shareholder Shares Offered||--|
|Lockup Period (days)||180|
|Quiet Period Expiration||--|
The following table details the Company’s intended use of proceeds from this offering, for the first twelve (12) months after successful completion of the Offering. None of the expenditures itemized are listed in any particular order of priority or importance. Assuming that 100% of the Offering is sold, the gross aggregate proceeds will be allocated as follows: Expenditure Item (1) Allocated Proceeds $ Legal Fees 15,000 Accounting Fees 20,000 Other Fees (2) 10,000 Administrative 5,000 Capital Equipment 500,000 Professional Fees 600,000 Physical Infrastructure 1,500,000 Product Development R&D 1,100,000 Process Control System 350,000 Cost of Goods 3,300,000 Website design, development, hosting & maintenance 100,000 Total: 7,500,000 (1) The above expenditures are defined as follows: Legal Fees : Fees paid to our attorney for preparation and filing of SEC documents, and other State and Federal documents, as well as preparation of contracts and agreements, and consultation on business matters relating to operation of the business. This item includes offering costs. Audit Fees : Fees paid to our independent auditor to audit and review our financial statements in relation to SEC reporting requirements once we are required to do so. This item includes offering costs. Other Fees : Fees paid to our accountants for ongoing financial statement preparation. Fees paid to the transfer agent for issuing corporate stock and facilitating subsequent stock transactions and oversight, and any other fees that may be paid for ongoing corporate services. This item includes offering costs. Administrative : Any monies paid for communications, postage and shipping, office supplies and other miscellaneous items that are administrative in nature. Capital Equipment : Expenses relating to Engineering Software and Hardware, Assembly Line construction, Work benches, Machinery, Engineer and Software test equipment and test clothing Professional Fees : Expenses related to Software Engineers, Mechanical Engineers, Quality and Test Engineering. Physical Infrastructure : Expenses relating to additional office space, warehouse space, and conference center. Product Development R&D : Development of Software, PCB/BCBA controller boards for locker systems, dispensing systems, vend assurance hardware and software, New product lines. Process Control System : Expenses relating to Inventory Management, CRM Sales System, employee training. Cost of Goods : Required inventory for existing orders relating to three of our largest clients. Website design, development, hosting and maintenance : Monies paid to independent contractors to build, host and maintain the Company website. There is no assurance that we will be able to raise the entire amount of this Offering. The following chart details how we will use the proceeds if we raise only 50% of this offering: (2) These items include a total of $10,000 in offering costs There is no minimum amount we are required to raise in this offering and any funds received will be immediately available to us. If only 50% of this Offering is sold, the Company will have to strictly curtail its development plans. It will only utilize its attorney to do what is necessary to meet its SEC, State and Federal reporting and licensing requirements. Its audit requirements will be met at the same level as would be done if 100% of the stock offering were sold. We will look to other less expensive ways of having our financials prepared and we will engage our transfer agents for only the most necessary tasks. We will look to other more creative ways of financing our operations. The President will pay for any additional expenses as necessary. Any expenses paid by the president will be on a shareholder’s loan basis. If less than 50% of the Offering is sold, the Company will have to severely curtail its development plans and may be forced to cease operations until additional funding can be found, of which there is no assurance. Investors in this Offering may lose all of their investment if we are forced to cease operations. No proceeds from this Offering will be paid to our officers and directors in the form of commissions, salary, or other compensation.
The vending industry is highly competitive. We compete in both the vending manufacturing and vending operations segment of the industry with companies that offer the same services that we do. Many of our competitors have significantly greater resources than we do. Although we believe we have an competitive advantage based upon the lower pricing of our products, a substantial decline in price could adversely affect consumer demand for our products and reduce our competitive advantage. Although we believe that there are significant barriers to entry to new competitors in the vending market due to, among other things, the substantial capital outlay required to purchase the number of machines needed to achieve competitive operating efficiencies, a competitor with significant financial resources may be able to compete with us. There can be no assurance that any competitors will not be able to raise the required capital to effectively compete with us. In addition, we may face new competition as we seek to expand into international markets and develop new products, services and enhancements. Many of the competitors have greater experience than we do in operating in these international markets. Moreover, new products that we intend to develop, such as advertising, may subject us to competition from companies with significantly greater technological resources and experience. Many of our potential competitors have longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical, marketing and public relations resources than we have. These competitors may be able to undertake more extensive marketing campaigns, adopt more aggressive pricing policies and make more attractive offers to consumers and businesses. Our competitors might succeed in developing technologies, products or services that are more effective, less costly or more widely used than those that have been or are being developed by us or that would render our technologies or products obsolete or noncompetitive. We cannot be certain that we will be able to compete effectively with current or future competitors. Competitive pressures could seriously harm our business, financial condition and results of operations and our ability to achieve sufficient cash flow to service our indebtedness.
At AVT, Inc., our primary focus is on the design and manufacture of vending and product dispensing systems which utilize an inventive approach on development, integration of technology and advertising media. AVT's designs are innovative in that our systems exploit the use of an integrated PCs,
having internet connectivity among a variety of other components that work in concert with the PC such as, printers, credit card readers, wireless devices, RF modules and just about any peripheral that is capable of connecting to a PC. As a design manufacture, creator of specialty application software and integrator of technology, our products define the cutting edge of the vending and dispensing industry and position us as a leader and industry innovator. We were originally incorporated under the laws of the State of Delaware on February 25, 1969 as Infodex, Incorporated. In October, 2005, we acquired Automated Vending Technologies, Inc., a Nevada corporation and began focusing our business on vending operations. In December, 2006 we merged our operating wholly owned subsidiary into the parent company and in January of 2008, we changed our state of domicile to the State of Nevada and renamed the company to “AVT, Inc.” We operate in the State of California as “AVT Vending, Inc.” ------ Our offices are located at: AVT, Inc. 341 Bonnie Circle, Suite 102 Corona, CA 92880 Our Telephone Number is: (951) 737-1057
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