Business Development
We were incorporated on July 3, 2006 in the State of Nevada under the name Promotions on Wheels Holdings, Inc. We changed our name to Blindspot Alert, Inc. on December 12, 2008 and to Websafety, Inc. on September 11, 2009. The Company was originally a developmental stage company with a principal business objective of offering live promotions and marketing events utilizing unique custom built mobile displays. On July 21, 2008, we discontinued that business.
On June 30, 2008, the Company entered into a License Agreement (“License”) with WQN, Inc., a Texas corporation (“WQN”), which, in consideration for the sum of $300,000 granted the Company the right to market and sell WQN’s Websafety software products. The License covered software products that had been developed by WQN and granted the Company an exclusive right for a period of 12 months to market and sell the software products through the Home Shopping Network, QVC, Inc., CVS Pharmacy, WalMart, and Walgreens and the non exclusive right to market and sell the software products worldwide.
The License provided for the Company to retain 65% of all revenue received from the sale of CYBERSAFETY software and to pay 35% of all revenue to the Licensor, WQN. The License Agreement required Licensor to provide Company technical and customer support and required Licensor to provide Company with all future updates of the software.
On July 2, 2009 the Company entered into an asset acquisition agreement with WQN, Inc. Under the agreement we acquired all of the technology known as Websafety Technology for approximately 27,000,000 shares of our common stock. Consequently, the Company no longer has any royalty commitments to WQN under the June 30, 2008 license agreement.
Management believes that our products are a timely solution to many of the dangers that come with the unprecedented access to information and people that is provided by the internet and cell phones provide.
From June 2008 through December 31, 2009 we refined our website and we commenced limited revenue activity in the fourth quarter of 2009. We intend to market our products and services through relationships developed with “trusted” sources consisting of child protection advocacy groups including church, school and civic organizations. We intend to also explore opportunities to enter into strategic revenue sharing partnerships with companies having synergy with our products. These partners may include auto related companies, auto insurers, telecom logistic companies and cell phone manufacturers.
Business of Issuer
We are focused on marketing, selling, and distributing a range of Internet software applications and services for cell phones worldwide. These software applications allow parents or other caregivers to monitor and be notified of occurrences of predator advances, cyber bullying, pornography; and cell phone applications that restrict text messaging while driving and provide location information to parents using GPS technology. We market our software products under the WEBSAFETY or CELLSAFETY brand names.
Since our inception on July 3, 2006 and as of December 31, 2011, we have generated a minimal amount of revenue and have incurred a cumulative net loss of $11,618,598. In 2011 our revenues were $65,830, however, we believe that we must raise approximately $250,000 through the sale of equity or promissory notes for us to sustain operations through the next twelve (12) months. This amount of capital has been budgeted to maintain our minimal infrastructure and marketing and sales campaign. We believe that the recurring revenues from sales of software products eventually will be sufficient to support ongoing operations. We can provide no assurance that the actual expenses we incur will not materially exceed our estimates or that cash flow from sales will be adequate to maintain our business. As a result, our independent auditors have expressed substantial doubt about our ability to continue as a going concern as noted in the independent auditor’s report to the financial statements included in this report.
In the month of September, 2011 due to the lack of revenue and inability to raise enough capital to pay for ongoing operations, we vacated our premises in Irving, Texas. All employees left the Company and we suspended our operations pending the raising of additional capital to finance our operations on a going forward basis.
Our CEO, Rowland W. Day II moved the administration of the business to his law office located in California which is the new address of the Company.
Mr. Day has continued to meet with prospective investors to fund the operations of the Company. To date very little money has been raised or loaned to the Company. There is no assurance that enough money can be raised for the Company to become operational at any time in the future.
Our Chief Executive Officer and Chief Financial Officer/Director works for us on a part-time basis. We also have four other Directors.
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