IQ Micro Inc (fka IQMC)

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Another Osmotex article translated. Like the last article, I have also posted it's image below the translation and I've done the best I could on translation, but of course I know minimal German (Google Translate has been my friend here). Please let me know if you see any errors. Overall, spells out much of what we already know, but also mentions a little more on market expectations for Osmotex products, amount of funding by investors, maintaining trade secrets, and a brief bit on licensing.

Here's the link: http://www.handelszeitung.ch/artikel/Unternehmen-Batterie-oder-Akku-ueberfluessig-machen_481899.html

Article from Handelszeitung & The Wall Street Journal(3/2/09)

Battery or Superfluous Battery

There is a company in Alpnach, Switzerland developing micropumps, which are now helping to fuel a breakthrough in electronic devices. The technology has been implemented through a partnership between a company with Norwegian roots and CSEM.

How does it operate?

The basic idea of fitting notebooks, mobile phones and medical instruments with independent fuel cells is now within reach. Instead of using short-live batteries, rechargeable batters or related power form an electrical outlet, these electronic devices could use these "small power stations" to keep the device going for much longer. The main obstacle for the commercial breakthrough of this fuel cell technology, is that fuel cells require actuators or micropumps for moving the liquid. Previously, micro-pumps available on the market were too expensive, too inefficient and required too much energy.

Four years to market

The founders of Osmotex stumbled on this market niche when they discovered a new electro-osmotic process. The company was located in Belgen, Norway from 1999 to 2007. They experimented with, among other things, using the new electro-osmotic process for textile applications. "Starting five years ago we were specifically looking for a partner in the areas of Microfluidics, Electrokinetics, micro-integration and prototype production," said Per Arne Lislien, CEO of Osmotex. The Norwegians then evaluated options in Europe and America.

Their search led them to CSEM in Alpnach. "Our job was as a research and development partner to bring the micro-pump to market," says Philippe Seiert, director of CSEM. Two Norwegian engineers, along with Trond Hendle, a company founder, went to Switzerland. The specialists at CSEM have helped drive the electro-osmotic pump to market in only four years. The process took place gradually with a series of small prototypes. The latest generation of micropumps transport the required amounts of liquid through a capillary at a very low voltage (in the range of a few volts). They reached energy consumption values that met the requirements for beneficial use in compact fuel cells and met the requirements for use in electronic devices.

The first customer on the hook

The successful cooperation with the innovation partner CSEM has led Osmotex to move all operational activities and their head office to Switzerland. "In Alpnach, we have the found, with the help of CSEM, not only the right people for the practical research, but also a number of small businesses with whom we can work with immediately, if we start producing," says Lislien. So far it is not there yet. In the research laboratory in Alpnach you will see engineers on screens, measuring and testing equipment. They converse in Norwegian, English and Swiss German. The breakthrough to market is set to happen this year. Lislien has recently made some successful contacts. The latest series of micro-pumps are already proving suitable for everyday use with various applications. "We have already attracted some paying customers," says Lislien.

Production is expected to start in 2009. For the time being, which devices will be using the micro-pumps first is a trade secret. In this final stage, of bringing the product to market, Lislien is walking a tightrope. On the one hand, he may in attempt to obtain customers, reveal some of the secrets of their micro-pump. On the other hand, there is the danger that competitors and imitators will be watching very closely. Osmotex also must be prepared to being wholesaling the micrpumps. It has therefore built up contacts with local businesses to prepare to boost production at the decisive moment.

In addition to energy efficient micro-pumps Osmotex is also focused on the development of electro-osmotic textiles on the basis of active membranes. "In both areas, we can use our technology, which is protected by multiple patents, in the development of the products of tomorrow," Lislein said. The business model provides system manufacturers with the ability to license the technology to manufacture or own micro-pumps. Their use is not only limited to fuel cells, but is possible anywhere in integrated micro-fluid systems including in DNA analysis, in insulin pumps, for the cooling of micro-chips and in the monitoring of biological and chemical processes. The wide application potential makes it clear that Osmotex will continue to count on the help of CSEM. A next step will be to expand the range of micro-pumps to include various sizes. More than 100 investors from Norway and Switzerland have invested 10 million francs so far to support the development of micro-pumps and they hope to soon be able to reap the rewards. No later than two years from now Lislien hopes to be at break even with their innovations.