Last Updated: November 30, 2017


As we have communicated in our 8-K and 10-Q Reports filed with the SEC as well as our periodic news announcements through our website and social media channels, VCSY has been building what we now call a “Private Communications Platform” while our Ploinks, Inc. subsidiary is developing Ploinks® applications that make up a private Secure Personal Capsule (“Ploinks SPC™”).

As noted in our filings, Ploinks, Inc. has an exclusive license from VCSY to utilize VCSY’s proprietary technology to develop and market private secure communications applications (such as Ploinks SPC™) for use between individual users within the United States only. This license does not include the enterprise and healthcare markets in the United States. Ploinks, Inc., is also developing “Ploinks for Business™” which is designed for individuals within companies and organizations who need to communicate directly and safely with customers, clients and fans (as applicable), but not for internal communications within an entity. Consequently, the “Ploinks for Business™” products are not considered part of an enterprise solution which would be used internally within a business or organization.

The VCSY Private Communications Platform incorporates new technology including patented and patent-pending inventions as well as proprietary trade secrets developed in-house. We believe that the VCSY Private Communications Platform (and products developed from this platform) create a unique value proposition to anyone who values security and privacy. We will be providing a product comparison that will demonstrate the differentials between Ploinks SPC™ and other sharing applications in the near future.

In sum, we have been developing the Ploinks® products and the VCSY Private Communications Platform simultaneously, with both efforts being coordinated through constant communication between the mobile development and the platform development teams.

The development of the Ploinks SPC™ has presented major challenges. Since Ploinks SPC™ currently consists of two integral components, the Ploinks® mobile application and the Puddle™, we have had to meet two separate sets of standards of differing operating systems. With the Android-based Ploinks® mobile app, we have had to comply with the requirements of Google Play. Conversely, the Puddle™ is a Windows-based solution, which has meant we have had to meet Microsoft’s development standards. Interfacing the Android-based Ploinks® mobile app with the Windows-based Puddle™ posed an additional layer of challenges to our development teams, particularly with respect to encryption. Since Google and Microsoft have differing requirements for encryption, we have had to develop an encryption protocol for both the Ploinks® mobile app and the Puddle™ from the ground up to satisfy both sets of standards.

The typical design team at any major tech company (like Samsung or Verizon) has a minimum of 8 software developers (working strictly on the application) with additional assistance from other personnel in their organizations. Our team consists of Luiz Valdetaro, VCSY’s CTO for the VCSY Private Communications Platform, with Harold Frazier as VCSY’s Chief Mobile Development Officer, one Android developer, one cross-platform developer, one software test engineer, one UI/UX designer and one .NET developer. Despite this small group, our teams have been able to get us to a point where both the VCSY Private Communications Platform and the Ploinks SPC™ are in the process of being launched in accordance the technical specifications we set out to achieve.

In short, this comes down to a matter of resources. A shareholder meeting would take 90 days of preparations by in-house personnel and would require at least $200,000 in direct costs to be paid to third parties. VCSY believes the best way to increase shareholder value is to focus its available resources on finalizing the launch and marketing of the Ploinks SPC™.

While the Ploinks® mobile application was released in February 2017, it did not include the Puddle™, which was essential for the new concept and functionality that will be available in the Ploinks SPC™. The Ploinks SPC™ encapsulates all the power of VCSY’s proprietary technology and returns privacy back to the individual with secure communications, back-up, and storage solutions for personal information, data, and communications.

While the Puddle™ was released in September 2017, it only included the synchronization functionality but not the restore function. We expect to finalize and release this feature shortly.

The next major release will incorporate the full power of the Ploinks SPC™ with additional features that will significantly increase its functionality. VCSY’s management believes that there is no direct competitor currently available on the market than can compete with the full-featured Ploinks SPC™.

VCSY is preparing a plan for a marketing campaign to coincide with a full national launch, which will include (as mentioned earlier) a full comparison chart with several commercially available applications that offer various means of communication and sharing. To that end, we intend to raise additional financing (through VCSY and/or Ploinks, Inc.) to help with our marketing efforts and with our continued development of the Ploinks SPC™ and the VCSY Private Communications Platform.

Presently, the Company’s key focus is the successful development and launch of the Ploinks SPC™ in the United States, which we believe will validate the strengths of the proprietary VCSY Private Communications Platform. Until the initial components of the Ploinks SPC™ are finalized and fully functional, we believe it will not be beneficial to focus on other forms of monetization through licensing and distribution. However, we have embarked on some introductory meetings with demonstrations of our technology to potential partners.

As mentioned in previously filed VCSY’s 8-K Reports with the SEC, the starting point of the spin-off process requires an audit of Ploinks, Inc. that is “current”. At the present time, the audit of Ploinks, Inc. will be for the period ended September 30, 2017. This audit is currently in process and should be finalized shortly.

Once the audit is completed, the Form 10 can be prepared. We estimate this will take 30 days to prepare after which it will be filed with the SEC, subject to its comments.

Since all of these steps are dependent upon one another and review of the Form 10 by the SEC, we cannot estimate the Record Date for the spin-off.

Before commenting on our Public Relations plans for Ploinks®, we believe a few key points are relevant to bear in mind:

Revenues from the Ploinks SPC™ will be generated through paid subscriptions. Ploinks SPC™ is a monthly subscription-based offering for individuals that want their privacy returned and safe secure communication.

We believe the underlying VCSY’s secure Private Communications Platform is a revolutionary platform since it uses components based not only upon patented and patent-pending technology but also uses trade secrets developed by our software development team. In other words, we believe that because our platform was wholly developed internally, our platform and associated products are unique.

It is important to note that the scalability of the VCSY Private Communications Platform has not yet been tested with high volume.

The success of Ploinks, Inc. lies in the ability to offer a true peer-to-peer viewing-only communication channel through the Ploinks SPC™ to millions of individual users where no centralized servers are involved, therefore minimizing direct fixed costs.

We intend to incorporate the foregoing points into our marketing strategy. Our goal is to develop and implement a controlled growth plan that will demonstrate our unique offering with the ability to be profitable with manageable volume of new users while ensuring the VCSY Private Communication Platform and apps like the Ploinks SPC™ always remain stable.

Part of our plan is retaining both an investor relations and PR firms to assist with the Company’s communication.

The Ploinks SPC™ customer is one who values their privacy and wants communications that are protected from existing privacy and cyber security risks. While nearly everyone enjoys the current social media communication environment, we believe a great and growing number of people feel a need for privacy of their personal information and communications.

In addition, there are various monthly charges that people do not consider in maintaining their personal data, including extra storage charges, cloud storage, costs for maintaining passwords, as well as the intangible cost of losing ownership of various proprietary artwork (i.e. images, photos, and videos). Ploinks® wants to be the go-to solution for individuals who want complete control over their personal data and communication.

The current $5 monthly subscription fee to use Ploinks SPC™ is an exclusive offer for initial users of Ploinks®. First, since this subscription is for the Ploinks SPC™, it includes the Ploinks® mobile app and the Puddle™ application for back up, synchronization and storage. We intend to honor this subscription structure for initial subscribers, but at some point, we may revise this subscription model. For example, we may offer different components of the Ploinks SPC™, separately, in the future. We also anticipate fee changes based on volume ranges and number of users for the Ploinks for Business™ offering.

One of the major factors regarding NOW Solutions’ decrease in revenues compared to previous years is due to the exchange rate between the US and the Canadian dollar, which significantly has impacted the revenue and, more importantly, NOW Solutions’ cash flow.

In addition, while the underlying emPath® software allows NOW Solutions to compete with other services offered by larger Payroll/HR corporations, NOW Solutions realized it would increase its product marketability by making significant adjustments to the look and feel and navigability of emPath®. These enhancements were completed in the latest release of emPath® (version 7.0 was released in the 2nd Quarter of 2017). NOW Solutions’ customers are currently in various stages of updating to this latest version.

We do not generally comment publicly on the suitability of VCSY as an investment. Such determinations should be made by investors based upon each individual’s research of the Company and should include a careful and thorough review of our SEC Reports and public announcements on our corporate websites. VCSY has survived many obstacles that have put other companies out of business. We have also managed to engage and retain key personnel, obtain patents to protect our intellectual property, and have now developed what we believe is a revolutionary technology that can create several revenue-generating opportunities that could increase the value of VCSY for its shareholders. However, there is no assurance that we will be successful, and our business is subject to substantial risks, including the “Risk Factors” (Item 1A) set forth in most recent 10-K Report for the year ended December 31, 2016.

We do not comment publicly on our stock price and have historically taken a very conservative approach when it comes to dissemination of news about the Company to the public. This is why in recent years, we have elected to file 8-K Reports with the SEC rather than issuing press releases. We also have been using Social Media channels and announcements on our corporate websites to update the public about new developments at our company.

The share price of any company will typically rise or fall based on actual results. Stock prices usually rise due to the successes of a business. Our goals are to increase our revenues through sales of our products and through licensing opportunities. If we can achieve our business objectives, we believe the share price will reflect such successes. Given the many challenges our company faces (see recent reports we have filed with the SEC as well as Risk Factors in our most recent 10-K Report, there is no assurance that we will be successful in achieving these business objectives.

For answers to questions about VCSY's Intellectual Property, please Learn more.

The stock symbol for Vertical Computer Systems, Inc. common stock is "VCSY".

VCSY is traded on the Over-The-Counter Markets and is quoted on the OTCQB (also may be referred to as OTCMKTS or Other OTC) under the symbol “VCSY”.

Vertical Computer Systems, Inc. has two billion shares of common stock authorized of which 1,003,545,134 have been issued as of March 30, 2015.

Vertical Computer Systems, Inc. declared a 20-for-1 stock split of its common stock on January 28, 2000, which was completed February 11, 2000.

VCSY is incorporated in the state of Delaware.

101 W. Renner Road, Suite 300
Richardson, TX 75082

Financial statements and SEC reports such as Form 10-K (annual report), 10-Q (quarterly report) and 8-K (current report) may also be found in VCSY filings with the SEC. To look up filings, please click here.

Please visit the Historical Quotes at Big Charts and enter “VCSY” and the date you would like to see the historical stock price for VCSY stock.

Olde Monmouth Stock Transfer Company, Inc.
200 Memorial Parkway
Atlantic Highlands, NJ 07716
phone: (732) 872-2727
fax: (732) 872-2728

No. Vertical Computer Systems, Inc. does not currently offer a direct stock purchase program.

To purchase shares of Vertical Computer Systems, Inc., please check with your current broker to see if they trade shares of our company. If your broker does not trade in shares of VCSY, please check with another broker such as Fidelity, Schwab, Scottrade, TDAmeritrade, e-Trade, to see if they trade our stock. Vertical Computer Systems, Inc. is traded on the Over-The-Counter Markets ("OTCQB") under the symbol “VCSY” (sometimes the stock may be quoted as "Other OTC” or “OTCMKTS”)

In order to have a new replacement certificate issued, you will need to contact our transfer agent, Olde Monmouth Stock Transfer Company,which handles the processing of our common shares of stock.

VCSY is a publicly traded company that was incorporated in Delaware and is now located in Richardson, Texas. The other company named Vertical Computer Systems, Inc., a private Florida corporation, is not related to the public company (VCSY) that is featured at this website.

For answers to general questions about VCSY, please check first our web site. Another source for information about VCSY may be found in the company's annual 10-K filings and quarterly 10-Q filings with the SEC as well as our press releases.

To look up filings, please click here. To view our press releases, please click here.

You can also contact Investor Relations by email at ir@vcsy.com

Our products consist mainly of software applications and services marketed on a B2B basis. Please visit our Products Page to learn more.