November, 2004
Dear Investor:
I am happy to report that we have made significant progress since my letter to you in May. Since then, the team at Invisa has accomplished many of its early objectives:
- In line with our financing plans, we raised $2.2 million in funding (which was completed in September). We sought this round of capital to provide Invisa with funds needed to support our business plan. Management was delighted to obtain this financing. With funding in place, for the first time in two years we now have positive working capital and little debt other than the normal trade payables. The Company can now focus on implementing its business plan.
- We began manufacturing the 4th generation "digital" SmartGate product (front page of the data sheet is attached). This product is easier to install, more compact, more reliable and, significantly less expensive to produce than earlier generations of SmartGate. We believe this product will receive widespread customer acceptance.
- A major emphasis of our business plan has been to sell to major manufacturers and suppliers of powered closure devices. In an important first step towards that objective, early in October we shipped the first 50 units of a 1000 unit order to Magnetic Automation, a major manufacturer and supplier of parking barrier gates in North America. The order is the largest that the Company has received to date - significant not only for its size, but also because Magnetic Automation is a highly respected manufacturer.
- As part of our efforts to develop the security applications of our technology, in Boston we recently presented a case study to the International Association of Museum Facilities Administrators. We highlighted and demonstrated a museum installation of our security sensors and established valuable contacts in the museum security sector.
- Invisa made real progress in improving efficiency by lowering overhead and reducing product costs. We signed a cost-effective lease and completed plans for a new facility in Bradenton, Florida, six miles north of our current facility. The interior area is being built-out to our specifications to create an efficient workspace with room to demonstrate our product line. We plan to complete the move in December. To further reduce product costs, we have negotiated the termination of two royalty obligations (particularly important as we expand into the security market), and have outsourced the manufacture of our product line.
- Finally, even as we roll out our 4th generation product, we are developing a new 5th generation sensor platform. This platform will feature tighter, system-level integration with added features at a much lower cost. As a result, we believe that this new product could significantly increase our market presence.
We will continue to provide current information on important developments at Invisa. The best timely source for all Company information is our website, www.invisa.com, where the Invisa Form 10Q-SB for third quarter of 2004 has been posted.
We will hold an Open House after our relocation. Directions to our new facility will be posted on our website in January.
Many thanks for your continued support! We are confident that Invisa is executing its plan.
Herb Lustig
President & CEO
6935 15th Street East, Suite 120, Sarasota, Florida 34243 USA; Tel 941.355.9361; Fax 941.355.9373