2021 Annual Financial Statement Report

Dear Equitech Shareholders,

The past three years have been quite challenging for Equitech. However, and thanks to the dedication, the trust, hard work, and investment in the company by a few shareholders, and the employees, Equitech is turning the corner and moving to new pastures.

Equitech is very close to becoming a Pink Sheets Current Information company and should attain this status at the end of the first quarter of 2022; this report is the last requisite! The report has been uploaded to the OTC and Equitech website.  How did we achieve this?  With a well-thought-out strategic plan.

In 2021, we formed a Keiretsu (a Japanese word meaning 'Affiliated Group or Conglomerate') by acquiring >80% of CompSOL USA, a company with capabilities to manufacture opto-electronic subassemblies. This move became the cornerstone of our strategy. CompSOL USA brought valuable resources to Equitech that we had never had before. With CompSOL, we added vertically integrated capabilities to manufacture our own Printed Circuit Boards (PCBs), valuable electrical, optical, and software engineering resources and a growing Customized Solutions Business Sector. Today, Equitech is a very different company than it was just a year ago!

Equitech also invested in sufficient inventory to guarantee a fast turnaround of our products and built a dedicated room for polishing, storing, handling, and building fiber-optic probes. Thanks to these investments, we can deliver a full system in only 2 weeks compared to 12 weeks in the past and a fiber-optics probe in just few days.

The acquisition of the above capabilities and the diversification of the product line prompted us to re-evaluate the raison d'être of the company.  Thus, we repositioned Equitech and became a manufacturer of opto-electronics solutions (devices + software) for in-line process measurements.

We also formed a strategic alliance with Optoniks, M&M, and bridgeTec.  Once a Licensing Agreement is in place (first quarter 2022), the alliance will permit us to manufacture and commercialize under the Equitech brand, technologies developed jointly between Optoniks and the University of North Carolina Charlotte (UNCC). By doing so, Equitech will expand its market potential adding applications in several other industries and diversifying the source of its revenues.

Three years ago, we received a company with almost $3M in debt, dwindling sales and a challenging legal situation. The picture is quite different now as shown in the financial report. The projections for the next three years are very encouraging too!

I would like to extend my heartfelt thanks to our employees who have worked under onerous circumstances during the past years. They have demonstrated resilience and shown extraordinary commitment in these unprecedented times. Finally, I would also like to thank you, our shareholders, for the trust you have placed in us. We will continue to do everything in our power to remain worthy of this trust.

Jaime A. Gómez, PhD

President & CEO