Next » | All Messages |  SFNL Message Board Home | recommend post |  Ignore Poster

SFNL News Secured Financial Network CEO Issues Letter To Shareholders

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Secured Financial Network, Inc. (OTCBB:SFNL) Jeffrey Schultz, President/CEO, issued a letter to shareholders today updating them on the status of the Company’s business and its outlook for the future.

Dear Secured Financial Network, Inc. Shareholders:

We began 2006 with the anticipation of collecting our receivables earned in 2005, only to be disappointed by the continuing legal problems associated with the container companies and their principals. To date there has been no final legal determination on their situation. While there may be hope of collection of these receivables at some point in the future, management believes this possibility is now remote. In order to reflect this fact in our financial statements, management decided to write-off essentially all of the receivables associated with the container companies. This action does not mean the company has forgiven the debt. Management continues to pursue all legal avenues for collection.

Although management is not encouraged about the collection of its container receivables, the Company has not forgotten its debt and obligation to its patient and supportive ”Container Program” note holders. The Company is currently considering a number of possibilities to facilitate repayment. Conversion to equity and all other means of repayment are being considered. Management hopes to have a proposal ready for the note holders shortly.

During 2006 the company appointed Michael Fasci as Chief Financial Officer. Mr. Fasci was previously, and remains, a Board member. During this past year he has worked diligently to keep the company in full compliance with all SEC requirements and has put into place the necessary accounting procedures to strengthen the financial integrity of the company. As a condition of his appointment, and with Board approval, the company engaged Sherb & Co., LLC (www.sherbcpa.com) to be the company’s auditors. Sherb has the credentials and expertise to guide the company into full compliance with the Sarbanes Oxley Act requirements mandated by the end of 2007.

As announced in September 2006, the company acquired Virtual Payment Solutions, LLC (VPS) as a wholly owned subsidiary. The Nutmeg Group and The Melanie Altholtz Trust provided funding for this acquisition through the issuance of convertible notes.

VPS adds a very exciting business dimension to SFNL by allowing contracted businesses the ability to transact business over the Internet, with their clients, through a very secure and proprietary payment system. We are currently working with several clients to provide payment, loyalty, and redemption solutions for their Internet customers.

In 2007 we expect the company to establish a growing presence in the payment solutions industry. It is management’s continuing goal to keep corporate overhead low, reduce debt and bring the company to profitability as quickly as possible. Through its new VPS subsidiary, management expects to build shareholder value and subsequent stock appreciation.

Very shortly we will launch our new Company website. It will be interactive and provide up to the minute information about the Company and its activities. It also provides shareholders and potential investors alike, the ability to email and interact with the Company and its management. (www.securedfinancialnetwork.com)

We at Secured Financial Network, Inc. wish all our shareholders a Healthy and Prosperous New Year and thank you for your continued support as we move into 2007.

About Secured Financial Network

Secured Financial Network, Inc. (SFNL) is a Florida based company that specializes in providing businesses with creative funding solutions. SFNL is constantly seeking business opportunities in which Company participation will create growth, add to profitability, and build shareholder value.

About Virtual Payment Solutions

Virtual Payment Solutions (VPS), a wholly owned subsidiary of Secured Financial Network, provides contracted Internet business customers the ability to transact business, with their client base, through a very secure proprietary electronic-vault based payment processing system.

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations and statements of future economic performance. Statements containing terms like "believes," "does not believe," "plans," "expects," "intends," "estimates," "anticipates" and other phrases of similar meaning are considered to imply uncertainty and are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from what is currently anticipated. Factors that could cause or contribute to such differences include those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company cannot guarantee its future results, levels of activity, performance or achievements.