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 2, 2003
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 a capital structure
realignment from the retirement of common stock by Company Founders.
TELKONET FOUNDERS RETIRE SHARES
REALIGN CAPITOL STRUCTURE
FOR IMMEDIATE RELEASE:
Contact: TELKONET, INC. HAYDEN COMMUNICATIONS, INC.
Stephen Sadle, Chief Operating Officer Matthew Hayden
410-897-5900 843-272-4653
ssadle@telkonet.com matt@haydenir.com
ANNAPOLIS, MD-JANUARY 2, 2003 - TELKONET, INC. (OTCBB: TLKO) a leader in
Powerline Communications (PLC) for the commercial market, today announced that,
Company Founders David Grimes and Stephen Sadle retired 1,805,400 shares of the
Company's common stock in exchange for the cancellation of a note reducing the
total outstanding number of shares of common stock in the company by
approximately 9% from 17,326,531 shares to 15,521,131 shares. Additionally since
the retired shares were free trading, the float of the Company's stock has been
reduced by approximately 38% from 4,758,146 shares to 2,952,746 shares.
David Grimes, Founder is retired. He continues to serve on the Board of
Directors and remains active within the Company under a multi-year Consulting
Agreement.
Stephen L. Sadle, Founder and Chief Operating Officer Mr. Sadle has an
Employment Agreement with the Company for three years.
Prior Retired Adjusted
Founders Shares Shares Shares
-------- ------ ------ ------
Dave Grimes 2,250,000 952,000 1,298,000
Steve Sadle 4,500,000 853,400 3,646,600
---------- ---------- ----------
6,750,000 1,805,400 4,944,600
Stephen L. Sadle, Chief Operating Officer of Telkonet, Inc. commented, "We are
proud of the performance of our team this past year, their technical
accomplishments, loyalty and dedication to our corporate vision. As 2003 begins,
Telkonet vigorously continues to pursue our goals of garnering wide acceptance
of our PlugFast family of products in the commercial PLC markets, and
concurrently bringing value to our shareholders.
Dave Grimes Stated, I am proud to have witnessed the growth and maturation of
our Company from its inception to the Telkonet of today and I continue to be
excited over the potential of our products. I look forward to my continued
participation with the Company as a consultant and serving on the Board of
Directors.
Telkonet's PlugFast Terminal can be used as a stand-alone solution within a
residence, or it may be used in conjunction with a PlugFast Gateway as a part of
Telkonet's solution for the commercial market. The core focus is High-Speed
Internet distribution over the electrical power lines for the commercial and
multi-dwelling residential markets. The Company has designed a suite of products
to address the needs of office buildings, hotels, schools, shopping malls, and
commercial buildings.
Telkonet's products provide connectivity over the 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 PlugFast family of Internet access products offers a viable and
cost effective alternative to the challenges of hardwiring and wireless LANs.
This solution set is comprised of two products, the PlugFast Gateway and the
PlugFast Terminal. The Telkonet PlugFast Gateway and Terminal are aimed at
applications such as apartments, hotels and motels, and the SME market.
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).