Altisource Asset Management Corporation Letter to Shareholders
May 17 2024 - 8:30AM
Business Wire
Altisource Asset Management Corporation (“AAMC” or the
“Company”) (NYSE American: AAMC) posts the following letter to
shareholders:
Dear Fellow Shareholders:
From my perspective, one of the most important assets of AAMC is
our interest in the EV Alpha Control System business. Our interest
in the Alpha Control System could be worth zero or a considerable
value, depending on our ability to execute the strategy. My task is
to control expenditures to provide AAMC the time to realize the
potential of our assets. The goal is to reduce operating
expenditures below $2.5 million per year and to minimize any undue
risk on the balance sheet.
Inquiries have been received concerning the progress reports we
have posted regarding the Alpha Control System. Specifically, the
questions about these reports, which are prepared by our UK partner
Seabird Limited, are largely focused on why certain portions are
shown as "redacted."
To clarify, the redacted information falls into three
categories:
- Potential additional claims which could potentially strengthen
the patent, the public disclosure of which could jeopardize such
claims.
- Sensitive commercial information that could affect our
negotiation positions such as motor selection and the
identification of potential counterparties.
- Preliminary scientific data upon which Seabird wishes to do
further analysis to confirm accuracy.
Where are we with the Alpha Control System? We are in the
commercialization phase of the project.
- First, Seabird concluded an exhaustive search of all available
motors and have arrived at a final selection. This has gone better
than expected and has identified an additional significant market
where we can provide substantial economic benefit – delivery
trucks. Seabird achieved a 16 - 24% increase in range for in-city
driving. UPS drivers’ total compensation is $170,000 per annum.
Making them as efficient as possible is a significant return on
investment over the life of a delivery vehicle.
- Second, the demonstrator vehicle has been acquired and
engineering is preparing the vehicle for before and after testing
of the Alpha Control System.
- Third, the initial commercial presentation has been developed
which will be iterated as we receive feedback from potential
customers.
Generally, we are on track for the 9-to-18-month sales timeline.
A couple of weeks ahead or behind on the various work streams. We
stress that even after we sign a contract, it will be several years
until Alpha will be integrated into the production process.
Respectfully,
Bill Erbey
Chairman
About AAMC
AAMC is a private credit provider that originates alternative
assets to provide liquidity and capital to under-served markets.
AAMC works to employ capital light operating strategies that have
historically been implemented across a variety of industry sectors.
The Company’s principal line of business going forward is the
development and licensing of a control system which increases the
efficiency of electric vehicles. Under the PTLA, the Company
acquired a non-exclusive license for a set of patents for a control
system which seeks to optimize the efficiency of electric vehicles.
Additional information is available at www.altisourceamc.com.
Forward-looking Statements
This press release and the attachments thereto contain
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). In some cases, you can identify forward-looking
statements by the use of forward-looking terminology such as “may,”
“will,” “should,” “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “targets,” “predicts,” or “potential,” or
the negative of these words and phrases or similar words or phrases
that are predictions of or indicate future events or trends and
that do not relate solely to historical matters. You can also
identify forward-looking statements by discussions of strategy,
plans or intentions. The forward-looking statements contained in
this release reflect our current views about future events and are
subject to numerous known and unknown risks, uncertainties,
assumptions and changes in circumstances that may cause our actual
business, operations, results or financial condition to differ
significantly from those expressed in any forward-looking
statement.
Factors that may materially affect such forward-looking
statements include, but are not limited to:
- Our ability to develop and implement new businesses or, to the
extent such businesses are developed, our ability to make them
successful or sustain the performance of any such businesses;
- Current inflationary economic and macro-economic and
geopolitical events, and market conditions that can affect our
businesses;
- Our ability to develop and implement a new business with
respect to the PTLA and that the Company will achieve its
expectations with respect to the patents and other intellectual
property associated therewith;
- Our ability to monetize our existing loan portfolio; and
- The failure of our information technology systems, a breach
thereto, and our ability to integrate and improve those systems at
a pace fast enough to keep up with competitors and security
threats.
While forward-looking statements reflect our good faith beliefs,
assumptions, and expectations, they are not guarantees of future
performance. Such forward-looking statements speak only as of their
respective dates, and we assume no obligation to update them to
reflect changes in underlying assumptions, new information or
otherwise. For a further discussion of these and other factors that
could cause our future results to differ materially from any
forward-looking statements contained herein, please refer to the
section “Item 1A. Risk Factors” contained in the Company’s 2023
Annual Report on Form 10-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20240517390710/en/
Charles Frischer T: +1-813-474-9047
E: charles.frischer@altisourceamc.com
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