AARO Broadband Wireless Quarterly Report Showcases Key Contracts.Business Editors OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 28, 2000 AARO AARO Association of Americans Resident Overseas AARO Automotive Aftermarket Retailers of Ontario Broadband Wireless See wireless broadband. Communications, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AARW AARW Alliance of American and Russian Women ), released its 10-QSB quarterly report last week, showing the corporation's continued commitment to the deployment of high-speed wireless telecommunications throughout the central and western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . Key to the company's operations listed in the document, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Chief Financial Officer Mike Canfield, were contracts with the Oklahoma Municipal League, a $2 million capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. by the Oklahoma Publishing Company, and AARO's first distributorship agreement to bring its services to southwest Missouri. "These items show the company's sustained efforts toward reaching financial viability and bringing high-bandwidth communications to both rural communities and the business end user," Canfield said. On October 5, 2,000,000 shares of Series I Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. were sold to the Oklahoma Publishing Company (OPUBCO OPUBCO Oklahoma Publishing Company ) for $2,000,000. Each share of the Series I Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". is convertible into three shares of common stock and has a liquidation preference of $1.00 per share. This transaction made OPUBCO a greater than 10% owner of AARO's common stock. On November 16, 2000, AARO entered into an agreement with the Oklahoma Municipal League (OML OML Object Manipulation Language (ODMG) OML Ordinary Maternity Leave (UK) OML Order of Merit List OML Orquestra Metropolitana de Lisboa (Portugese) OML Oil Mining License ), granting the organization the sole and exclusive right for two years to contract with Oklahoma's smaller municipalities for distribution of the company's products and services. These products and services include fixed wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 Internet connectivity and related applications and products. OML agreed to coordinate all the necessary equipment required for installation and operation as well as market to and negotiate with Oklahoma municipalities for the utilization of AARO products and services. Under this contract, Canfield said, 40% of the revenues will be delivered to AARO. On September 30, 2000, AARO signed its first "Exclusive Master Distributorship Agreement" with AARO Broadband Wireless Communications of Missouri, L.L.C. The agreement provides that AARO Missouri has the sole and exclusive rights to distribute AARO products and services in Springfield, Mo., for an initial term of 10 years with two additional, renewable terms of 5 years. AARO Missouri is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to pay to AARO a one-time, non-refundable fee of $250,000. AARO Missouri is required to pay to AARO a monthly utilization fee equal to the greater of $7,500 or 50% of the gross revenues received. AARO has agreed to provide the distributor certain equipment, including its installation and configuration. As of November 13, 2000, AARO had received requests for information regarding our "Exclusive Master Distributorship Agreement" from other locations in Kansas, Arkansas, Oklahoma, Texas and Virginia. These requests are in the initial phase of analysis at this time. During three months ended September 30, 2000, AARO had revenue of $29,273 resulting from custom programming, consulting and providing broadband wireless transport. Canfield said the company is currently in the process of acquiring the necessary equipment to complete the deployment of its regional hubs, national operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. and individual customer sites. He added that AARO expects to make progress in connecting broadband wireless customers in Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm , Tulsa and Austin by December 31, 2000. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $1,253,427 consisted predominately of facilities and telecom charges, depreciation-amortization, contract services, occupancy costs and employee costs. Facilities and telecom charges of $153,429 were incurred as AARO connected offices and regional hubs with the national operations Center. Contract services include expenses related to professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and contract labor fees and totaled $144,277. Other expense in the amount of $665,905 was mainly due to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses associated with settlement of a lawsuit with former business associates. See attached financial documents for detailed information. A full copy of the AARO Broadband Wireless 10-QSB is available at www.aarowireless.com. About AARO AARO Broadband Wireless Communications, Inc. provides wireless connectivity up to 100 MBps. AARO New World services such as unified communications The real time redirection of a voice, text or e-mail message to the device closest to the intended recipient at any given time. For example, voice calls to desk phones could be routed to the user's cellphone when required. , IP telephony and videoconferencing services, are delivered via a highly secure, carrier-class IP network. For additional news and information, please visit us at www.aarowireless.com. This document includes forward-looking statements, made under the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are generally identifiable by the use of words such as "believe," "expect," "intend," and other words of similar nature. These statements are based on management's current expectations, estimates and projections that are subject to risk and uncertainties, including, but not limited to, success of negotiations, availability of financing, political currency and regulatory, competitive and technological developments. Consequently, actual results could differ materially from those forward-looking statements. AARO Broadband Wireless Communications, Inc. does not undertake, and specifically disclaims, any obligations to update forward-looking statements, which speak only as of the date made.
AARO BROADBAND WIRELESS COMMUNICATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2000, AND DECEMBER 31, 1999
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- --------------
Assets
Current Assets:
Cash and Cash Equivalents $ 83,783 $ 1,248
Accounts Receivable 43,565 3,376
Inventory - 13,508
Notes Receivable 65,967 -
Deposits and prepaid expenses 91,567 -
---------- ----------
TOTAL CURRENT ASSETS $ 284,882 $ 18,132
PROPERTY AND EQUIPMENT (net of
accumulated depreciation of
$110,549 and $147,992, respectively) 2,419,301 154,641
Other Assets:
Organization Costs (net of accumulated
amortization of $0 and $3,825,
respectively) $ - $ 675
Noncompete Covenant (net of accumulated
amortization of $0 and $6,150,
respectively) - 11,850
Intellectual Property (net of accumulated
amortization of $0 and $37,917,
respectively) - 287,083
Other Assets 93,860 -
---------- ----------
TOTAL OTHER ASSETS $ 93,860 $ 299,608
---------- ----------
TOTAL ASSETS $ 2,798,043 $ 472,381
========== ==========
Liabilities and Stockholders' Deficit
Current Liabilities:
Accounts Payable $ 2,079,906 $ 61,261
Accrued and Other Current Liabilities 210,291 344,655
Debentures Payable 5,000 75,000
Litigation Settlement Payable 666,600 -
Short-Term Notes 341,425 252,004
Current Portion of Long-Term Notes - 167,447
---------- ----------
TOTAL CURRENT LIABILITIES $ 3,303,222 $ 900,367
TOTAL LIABILITIES $ 3,303,222 $ 900,367
Stockholders' Deficit:
Common Stock, $0.001 par value,
200,000,000 shares authorized,
30,069,309 and 16,553,457
shares, respectively, issued and
outstanding $ 30,069 $ 373,615
Common Stock Issuable, $0.001 par
value, 8,890,767 shares 8,891 -
Series I Convertible Preferred Stock,
$0.001 par value, 5,000,000 shares
authorized, 2,842,770 and 3,000,000
shares, respectively, issued and
outstanding, liquidation preference
2,842,770 and 3,000,000,
respectively 2,843 3,000
Paid in Capital 2,346,139 220,557
Unearned Directors' Fees (130,959) -
Accumulated Deficit (2,762,162) (1,025,158)
---------- ----------
TOTAL STOCKHOLDERS' DEFICIT $ (505,179) $ (427,986)
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 2,798,043 $ 472,381
========== ==========
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