RJD Green Inc.’s Management Discusses 2022 Year-End Results and 2023 Growth

Tulsa, OK – (NewMediaWire) – February 13, 2023 – RJD Green Inc. (OTCPK: RJDG) CEO Ron Brewer updates shareholders on 2022 year-end results and targeted 2023.

Dear Valued RJD Green Shareholders,

As we have finished 2022 and are now in 2023, RJD Green’s management team would like to take the opportunity to update all existing and potential shareholders with the latest information on developments with the Company. Please be advised – this letter is not a substitute for reviewing our press releases and SEC filings. Some of this update is opinion – please note the forward-looking statements disclosure. We hope to simplify the complexity and put our latest news items in context and keep you updated on our activities and events that may not rise to the level of a press release or SEC filing.

We continue to work diligently to execute our business model to create a substantive holding company with a focus on acquiring and managing assets and companies. RJD Green operates in three divisions: 

RJD Green Healthcare Services Division, which owns IoSoft Inc., a company that provides discrete payment technologies, services, and software platforms that can integrate into targeted offerings for healthcare provider networks, hospitals, healthcare payers, as well as the insurance and financial transection sectors. 

Silex Holdings Division, which offers installed granite/other countertops, cabinets and related products to the residential builder, commercial contractor, remodeling contractor and retail customers. 

Earthlinc Environmental Services Division, which provides green environmental services and green technologies. 

In the past 12 months:

 RJD Green’s Construction Products Division – Silex Holdings Inc

In 2022 Silex Holdings experienced 15.5% revenue growth over 2021 and 21.6% over 2019, with a 13.8% EBITDA. These efficiencies were created despite a $171,000 one-time inventory write down. The history of continued growth has been enhanced by continued sales growth in the commercial sector and high-end custom homes market. Sales were supported by extensive increase in the automation of production increasing production capacity over 30% and further enhanced the quality control program with the additional CNC automation. These key components solidify Silex’s ability to create continued profitable growth and progress the expansion of the Silex Holdings business platform. RJD Green will continue to grow the division through internal growth and targeted industry acquisition options. Forecast for construction activities in 2023 remains positive with the commercial market continuing to be active nationally. In Silex’s region homebuilding and remodeling are currently down by 10%. Silex’s significant high-end customer base will offset much of the volume builder and small builder decline. Nationally, by several industry professional organizations, the national decline will be 105% to 15%. The current backlog is over $1,000,000.

The commercial division continued its revenue growth and geographic expansion with new commercial contracts awarded Silex in 2022. Silex has projected an additional $750,000 increase in commercial sales for 2023.

Silex Holdings  home builder business will continue to grow in 2023 with two significant revenue streams as the primary focus in both markets serviced.

High-end custom homes ($1,000,000 to $20,000,000) increased revenues with greater profit margins.

Silex continues to maintain a long-term builder client base.

Silex has targeted the designer, remodel, and retail sectors for significant revenue growth from previous years. The new 4,000 square foot kitchen and bath showroom in Tulsa Oklahoma, and the updated Oklahoma City location will assist with this targeted market.

Ron Brewer, CEO of RJD Green Inc., states, “Silex continues its progression in solidifying long-term relationships with valued clients in the construction industry by providing a custom quality product with fast turnaround times on our clients’ orders. We feel the close attention to the changing market sectors and the individual needs of each market, will further assist Silex Holdings to continue regional expansion creating ongoing additional profitable revenue while searching for  appropriate acquisitions that would consolidate a larger six-state regional position.”

IoSoft Services, a Division of RJD Green Focused in Software products for Healthcare and Insurance Sectors

IoSoft continues to pursue relationships within the initial focus is being diversified in sectors and product offerings to create a broader revenue opportunity. The TPA sector has become a slower growth in clients than was desired. IoSoft continues increasing presence in this sector; IoSoft focused on acquiring and creating software platforms for the common needs of universal sectors. This allows IoSoft to pursue custom software development and software support in sectors that include healthcare, insurance, legal, hospitality, and financial services.

Specific programs developed or refined include:

IoSoft Suites

The expedited payment systems are now teamed with claims processing and adjudication, a multi-level communications system, and accurate data collect software systems.

IoSoft’s  integrated systems offer leading edge solutions for pricing and payment of claims that enhances efficiency and productivity. The software solutions can be utilized individually or as a total claims and payment management system.

IoSoft’s system offers full auto adjudication claims processing software program that maximizes automation and customer engagement through leading edge technology. The system is secure, compliant, and scalable to the payer’s specific needs.

Some of the IoSoft integrated system components include:

·      Manage Claims

·      Member Management

·      Paper Claims Billing along with cost  and time savings through Virtual Card, Digital Checks, EFT

·      Track Claims

·      Segregation of Claims

·      Provider Information and  Communications Management

Outsourced IT Needs

The services include special technology and software company projects, essential technologies support and development, help desk, and network management services. The many benefits for the active small-cap company include:

§  Cost Reductions

§  Expedited projects 

§  Freeing up internal resources

§  Outside business guidance for increased profitability through technology application

§  Scalability

This effort is very synergistic with IoSoft white label focus and independent software development efforts.

RJD Green Inc.’s Healthcare Services Division, within an enhanced acquisition funds environment has targeted strategic medical billing company acquisitions. The sector typically offers 20% or greater EBITDA earnings.

In 2022, RJD was unable to procure appropriate acquisition funding term that would allow the Company adequate cash-flow for ongoing operations and growth. For 2023, RJD is in discussion with a broader sector of lenders and equity participants to overcome the high-risk terms offered in 2022.

Vincent Valentine, IoSoft Inc. Chief Technology Officer, stated: “We are pleased to be continuing our initial efforts in creating clients in multiple targeted business sectors. We feel the capital markets are more eager to make equitable acquisition funding terms in our industry.”

Earthlinc Environmental Division

In 2022 RJD Green targeted utilizing the proprietary green technologies in direct applications and joint ventures.

Earthlinc Environmental Division is working on joint-venture and white-labeling our unique technology and product development program capabilities.

When RJD Green sees the acquisition economics are truly stabilized in 2023, the Company will seek environmental service companies as possible growth accelerants for 2023.

Ron Brewer, CEO, states: “Through our Earthlinc Environmental Division, RJD Green will continue its pursuit of contracting for their environmental technology services, while continuing efforts in developing additional proprietary environmental products and services. As growth funding relationships are procured, RJD will focus on acquisition of one or more companies operating in green efforts.”

Merger and Acquisition

In 2022 RJDG was not successful in procuring the appropriate M & A  funding program(s) which offered manageable risks in debt / equity financing.  The unsteady economy, war, and political atmosphere greatly limited acquisition funding in the small-cap public company sector. Acquisition opportunities were procured, which would have moved the Company to $10,000,000 to $15000,000 in annual revenue.

In 2023 RJD’s initial acquisition focus is procuring smaller product and services acquisitions that enhanced our window of opportunity for immediate revenue growth and profitability.

The inability to complete two or more substantive acquisitions is a source of consternation for RJD’s management and shareholders.

RJD Green is currently engaged in ongoing efforts to cement funding relationships that afford not only the ability to complete an acquisition, but also give RJD deal structure that does not require most of existing cash-flow of the acquisition.

RJD is already engaged in discussions on attractive acquisition opportunities, as the small-cap market appears to be more open than any time in the past three years. RJD will maintain stringent cash-flow to acquisition value ratios necessary to create the best surety and returns for our equity partner participants, and our shareholders as we move forward this year. We are hopeful of completed results in 2023.

We will continue to update our investors with progress reports in the coming months as newsworthy occurrences happen.

We have accomplished a great deal in creating  a solid operating and financial foundation platform for growth. We are targeting acquisitions that meet our growth criteria and priced within appropriate cash-flow leverage. Our focus is to continue building a stable company with rapid growth potential, and we remain committed to pursuing initiatives that maximize value for all RJD Green stakeholders.

We very much appreciate your support and interest in our continued growth efforts.

 Sincerely,

Ron Brewer

CEO, RJD Green, Inc.

About RJD Green, Inc.

The Company operates as a holding company with a focus on acquiring and managing assets and companies. RJD Green operates in three divisions: RJD Green Healthcare Services Division, which owns IoSoft Inc., a company that provides discrete payment technologies, services and software that can be integrated into targeted offerings for healthcare provider networks, hospitals, healthcare payers and individual providers; Earthlinc Environmental Services Division, which provides green environmental services and technologies; and Silex Holdings Division, which is engaged in specialty construction and industrial manufacturing and fills a market niche between the Home Depots and local contractors. Silex offers installed granite/other countertops, cabinets and related products to the residential builder, commercial contractor, remodel contractor and retail customer. 

 Forward-looking Statement: 

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events of future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In the evaluation of such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

 Ron Brewer

 918 551 7883

ronb@rjdgreen.com

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