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XTouch Metal Mesh Touch Sensors and Diamond Guard Hard Coat Resin (Glass Replacement Technology)

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STRATEGY
''Our business strategy is to penetrate existing applications markets with our family of Performance Engineered Film™ technologies including InTouch™ produced touch panels and our Diamond Guard™ hard coat products by leveraging the capabilities and competencies we achieved in the development of our functional application specific films. We are presently focused on taking the following measures to implement our business strategy:
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Develop Strategic Relationships. We plan to cultivate relationships to further our efforts in the development and commercialization of InTouch™ produced touch panel films and our Diamond Guard™ hard coat technology. We believe that if these efforts are successful, they could result in InTouch™ based touch panels reaching commercial markets in products within the next 12 months. We are already offering our Diamond Guard™ hard coat films for sale. We believe that gaining the assistance of technology leading OEMs in the deployment of InTouch™ produced touch panel films by including the films in their products would be a significant step for our commercialization effort of this product. As a result, we will seek to build relationships with OEMs that will allow us to leverage our existing knowledge, scale, infrastructure, manufacturing and expertise in thin films, optics, fine line printed conductors, assembly, and logistics.
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Enhance the Company’s Existing Performance Engineered Film™ Technology. We believe that continuing development and enhancement of our PEF technology is critical to our success, therefore, we engage in internal development efforts that we expect will expand our intellectual property portfolio, collaborative relationships, and other strategic opportunities. Our primary focus is to expand our intellectual property through development of additional prototypes and materials that enhance and extend our product capabilities or the processes by which the systems are produced, thereby allowing them to be used in a broader array of applications.
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Develop Prototypes Suitable for Industry Demonstration. We have produced prototypes with a performing system and film products that we believe have superior touch performance to those currently used in the industry and demonstrate our ability to meet OEM product requirements. We have partners that provide a small volume pilot production line that provides limited quantities of films to demonstrate our production solutions for all applications.
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Finalize a Manufacturing Process. We are developing the core and foundation of our film manufacturing processes. While we use partners and sub-contractors to manufacture the Diamond Guard™ protective cover films and apply our hard coat resin to various products, we intend to acquire all necessary equipment to manufacture the Copperhead™ films internally with our manufacturing partner.
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Target Leading Manufacturers. We are targeting leading display, materials and electronics manufacturers as potential partners and/or integrators of our Performance Engineered Film™ products. We will provide extensive technical assistance and support to manufacturers who are early evaluators, developers, or users of our protective cover and InTouch™ touch screen films. We also employ a “pull through” strategy (targeting end device OEMs) by actively marketing the advantages of our technologies to the manufacturers that incorporate touch screen technology into their devices. This could result in our production partners gaining access to the OEM supply chain as OEMs seek the competitive product advantages offered by our Performance Engineered Film™ technologies. We also target Original Design Manufacturers (ODMs) targeted to assemble our sub-components and films into OEM products.
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Drive Adoption by End-Product Original Equipment Manufacturers. We also plan to employ a “pull through” strategy with OEMs and ODMs that produce end user products by demonstrating our technology using prototype devices and films. We believe that the significant advantages that our films will offer in performance and protection may induce OEMs to request our solutions from their existing suppliers.
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Build the Company’s Revenue Sources. We believe that we will be able to produce revenues from two distinct sources: product or production licenses and product sales (InTouch™, Diamond Guard™ resins).
We plan to conduct research on the use of a variety of different thin-film technologies in surface modification applications and the construction of multi-layer stacks where micro-structures can play unique functional roles. Our focus on next-generation technologies is designed to help establish us as a recognized provider of Performance Engineered Film™ as new markets and applications emerge.
MILESTONES TO COMMERCIALIZATION
We will continue to focus on technical and business development milestones. The execution of our overall business plan includes a planned push (targeting computer component manufacturers) and pull (targeting end device OEMs) strategy for accelerating product development, supporting market entry, and the expansion of production capability and capacity. Over the course of the last four years, we have pursued a technical development roadmap specific to Diamond Guard™ hard coat and Copperhead™ technologies that seeks to accomplish the following:
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Finalization of Diamond Guard™ hard coat materials and coating technologies for protective cover films and anti-scratch coatings;
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Characterization of the performance of Diamond Guard™ films and coatings as cover lens replacement across numerous touch screen devices;
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Implementation of high volume production of protective cover film;
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Implementation of high volume production of hard coating processes (spray coating, ink jet coating, etc.);
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Establishment of numerous sales channels for Diamond Guard™ products;
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Development of the Copperhead™ high volume production process; and
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Finalization of specifications for the production of InTouch™ films for use in touch sensors
Specific to other Performance Engineered films, we have pursued:
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Completion of designs for marketable products
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Completion of production processes for those products
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Completion of joint development and supply and manufacturing agreements
Our senior management team will work with various targeted strategic partners in each step of the process to provide certain market and technical support resources. We intend to leverage partner resources in launching and growing a continuous flow manufacturing system. ''
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