NEWS - Manufacturing

SBJ Staff Report

June 14, 2010 - PureSpectrum Lightening, Inc, headquartered in Savannah, met with stockholders this week, and has announced its first quarter 2010 financial results showing the company is out of cash and needs to raise more capital, and quickly, in order to keep operating. The company secured several small loans in April and May to meet short-term cash needs.

PureSpectrum is in the business of developing, marketing, licensing, and contract manufacturing a new generation of bulbs for use in residential, commercial, and industrial applications worldwide, and has patents pending.

But despite raising $282 million from investors over the past few years, as of March 31, 2010, the company had only $250.00 cash on hand, and reported that it had lost $1.6 million during the first quarter of 2010 plus $ 700,000 in interest expense on borrowings, for a total loss of $2.3 million for the quarter.

According to the company’s SEC filings, the company is no longer considered in “start-up” mode.

The company reported assets of $1.2 million in inventory of its lightening devices and other assets, but had only $9,000 in sales from January through March of its bulbs.

In 2009, PureSpectrum merged with International Medical Staffing Inc.,  a Delaware corporation incorporated in 2007 that traded on the Over the Counter stock exchange, getting PureSpectrum off of the “pink sheets” of junk stocks. The strategy provided PureSpectrum with a faster methodology of getting on a better stock exchange in order to sell more stock.

But, “there can be no assurance that  the Company will be successful in the commercialization of the fluorescent lighting technology that will generate sufficient revenues to sustain the operations of the Company,” according to SEC filings signed by president and CEO Lee Vanatta.

In order to improve sales and exposure of the company’s products, PureSpectrum announced last week that it has entered into an agreement with Dave Dettman, a.k.a. Dr. Gadget®, as a spokesperson for the company. The move is “aimed at enabling the company’s dimmable Compact Fluorescent Lamps (CFL) to gain access to widespread exposure via national television audiences as well as providing the company a global forum to educate the public about the importance of energy efficient lighting,” explained Vanatta.

Vanatta said the terms of the two-year agreement with Dr. Gadget® is category exclusive for lighting and dimmable CFLs. The agreement has been in development for some time and has been structured to maximize exposure for the PureSpectrum brand and products as the company continues its efforts to establish a presence in major chain retail stores for its CFL product line.