HPC POS System, Corp. President's Letter to Shareholders
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:
mwcoles@mohanincense.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.
SOURCE HPC POS System Corporation
