SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
January 28, 2004
Date of Report
(Date of Earliest Event Reported)
TELKONET, INC.
(formerly known as Comstock Coal Company, Inc.)
(Exact Name of Registrant as Specified in its Charter)
902-A Commerce Road
Annapolis, Maryland 21401
(Address of principal executive offices)
410/897-5900
Registrant's telephone number
Utah 87-0627421
(State of Incorporation) (IRS Employer Identification No.)
ITEM 5. Other Events
The following press release was issued to announce the recent events of the
company.
--------------------------------------------------------------------------------
Telkonet moving to Amex
CONTACTS:
TELKONET, INC. INVESTORS STOCK DAILY, INC. CEOCAST, INC.
Stephen Sadle, Sr. V.P. Jody Janson Ken Sgro
410-897-5900 585-232-5440 212-732-4300
ssadle@telkonet.com jody@istockdaily.com kensgro@ceocast.com
FOR IMMEDIATE RELEASE:
ANNAPOLIS, MD. - JANUARY 23, 2004 TELKONET, INC. (OTCBB: TLKO.OB), the Leader in
Commercial Powerline Communications (PLC), delivering high-speed Internet access
over existing electrical wiring using their patent pending (PLC) technology,
today announced that it has received approval from the American Stock Exchange
for its listing application. As a result, the Company's trading platform for its
common shares will be moving from the NASDAQ Bulletin Board to the American
Stock Exchange. A tentative date to commence trading is set for Wednesday,
February 4, 2004. The letter to our shareholders below will serve as
communication of our transfer to Amex.
About Telkonet
Telkonet's products provide connectivity over existing electrical wiring and do
not require the costly installation of additional wiring or major disruption of
business activity. In many situations, the Telkonet system can be implemented
more quickly and less expensively than adding dedicated wiring or installing a
wireless system. The Telkonet PlugPlusInternet family of networking and
internetworking products offers a viable and cost-effective alternative to the
challenges of hardwiring and wireless local area networks (LANs). Telkonet
PlugPlusInternet products are designed for use in commercial and residential
applications, including multi-dwelling units and the hospitality and government
markets.
Statements included in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve a number of risks and uncertainties such as competitive
factors, technological development, market demand and the Company's ability to
obtain new contracts and accurately estimate net revenues due to variability in
size, scope and duration of projects, and internal issues in the sponsoring
client. Further information on potential factors that could affect the Company's
financial results, can be found in the Company's Registration Statement and in
its Reports on Forms 8-K filed with the Securities and Exchange Commission
(SEC).
902-A Commerce Road o Annapolis, Maryland 21401
Phone: 410-897-5900 o Fax: 410-897-1144 o web: telkonet.com
[Telkonet logo here]
January 28, 2004
Dear Shareholders,
The trading platform for our common shares will be moving from the
NASDAQ Bulletin Board to the American Stock Exchange ("Amex"). We have
tentatively set for Wednesday, February 4, 2004 at 9:30 AM to implement this
change. The existing ticker symbol "TLKO" will be replaced with the symbol
"TKO". A celebratory "Ringing of the Opening Bell" by our Chairman, Pete Musser
is scheduled for Tuesday, February 24, 2004.
Telkonet will create new stock certificates to conform to the Amex
security requirements. OUR CURRENT SHAREHOLDERS ARE NOT REQUIRED TO EXCHANGE
THEIR OLD STOCK CERTIFICATES until a transaction requiring a new certificate
occurs. However, to ensure a smooth transition from the Bulletin Board to the
Amex, we suggest you send a written instruction by fax to your broker to order
new certificates for the shares you have on deposit and then deposit these new
certificates into your account. This will eliminate any potential problems
associated with previous trading while on the Bulletin Board.
We are proud to be an Amex-Listed Company. Among the many advantages for
Telkonet to be traded on the Amex include daily listings in most newspapers and
the confidence gained by the foreign markets.
To increase our visibility, promote our PlugPlus(TM) Internet products
and generate leads, we implemented a marketing campaign, which began in October
2003, targeting the hospitality and multi-dwelling unit (MDU) markets. We
exhibited our products at key trade shows in October and November, ran
advertisements in national trade publications and buyer's guides and enhanced
our web site content. In addition, Telkonet was featured in the cover story
article in the October issue of UNITS, the National Apartment Association's
magazine, which you can read on our web site at
http://www.telkonet.com/html/articles1.html. We have enclosed a copy of our ad
and our corporate brochure, along with an extra brochure for you to share with a
friend or potential business prospect.
Telkonet PlugPlus(TM) Internet systems are being installed every week.
We've been receiving calls requesting updates on sales progress. The release of
Company information (including this letter) must comply with regulations
pertaining to "fairness" to the market. For that reason, this letter is being
included in a press release. You can expect appropriate releases of information
regarding the Company to the entire marketplace via press announcements.
Our goal to complete our suite of products by fall 2003 has been met.
Telkonet now has manufactured regulatory-compliant products that deliver
high-speed Internet connectivity to our three main market channels: hospitality,
multiple dwelling units, and the government/military. We have installed our
PlugPlus(TM) Internet systems in all channels and are now finalizing pricing and
product offering packages for our markets.
The sales and marketing staff have doubled by adding five industry
experienced professionals toward the end of the third quarter and we are
currently filling more positions. We are signing Value Added Resellers (VARs) to
gain market share. Now, in conjunction with a sales effort in the U.S., we are
planning a strategic launch to expose our solution outside the United States.
One such effort in Canada has already resulted in the installation of several
test sites in Canadian hotels.
In a couple of months we will be moving our corporate headquarters from
Annapolis to Germantown, Maryland. We are remodeling this new office space to
support anticipated growth, as well as research and development for our next
generation products.
Twelve months ago, we joined the Telkonet team as President and
Chairman and we now also serve as co-CEO's. Looking back, our suite of products
has been designed, tested and is now being manufactured for the market. A sales
organization has been put in place and systems have been installed and are
successfully operating in our main target market areas. Sufficient capital has
been raised to execute our plan and now our shareholders have the benefit of a
quality exchange for their investment.
We look forward to the challenges of 2004 and thank you for your loyal support.
/s/ Warren Musser /s/ Ron Pickett
Pete Musser, Chairman Ron Pickett, President
902-A Commerce Road o Annapolis, Maryland 21401 o Phone: 410-897-5900
Fax: 410-897-1144 o web: telkonet.com