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17yr - It was precisely because of prompting that he responded. Questions to IR and the realization that there was ambiguity in understanding the advantages that Asepticsure has over the competing technologies. Why they don’t respond similarly to other ambiguities e.g. patent delay etc..is still a puzzlement to me.
>> Shannon responded to the efficacy discussion, apparently without prompting
BenK – How is an investor supposed to understand these delays - that the government is taking their time or that there are issues with the approval and it isn't as straight forward as Medizone made it seem?
Same question as far as patents. They claimed they had several patent lawyers look at their application - why is it taking so much longer than they originally projected - are there issues?
Unless Medizone explains the delays we have no way to know.
>>The FDA and EPA approvals are a perfect example. The government had originally said that it will be done by the Fall, as I recall. Then management was told that "the latest by the end of January." These things go at the government's pace, no one can control these processes. It just is what it is.
One hidden cost of the delay into 2013. When this stock finally does realize it's potential we will be paying close to 60% more in capital gains compared to last year.
What news - they announced three years ago on 01/20/2010 that they filed an application for the bio-terror application.
One thing not clear to me is why this application has a file date of 09/08/2010?
http://www.medizoneint.com/investor-relations/press-releases-2010-3/january-5-medizone-international-successfully-completes-asepticsure-test-program/
January 20 – Medizone International Announces Greatly Enhanced AsepticSure™ Patent Protection
Medizone International Announces Greatly Enhanced AsepticSure™ Patent Protection
San Francisco, January 20, 2010, Following the recently announced success achieved during the third round of trials at its research facility at Queen's University (Kingston Ontario, Canada) Medizone International, Inc. (MZEI.OB) announces that a second patent application has been filed which in combination with its previous patent application for AsepticSure™ filed in July of 2009, affords the Company greatly enhanced protection for both the hospital version of AsepticSure™ and the government variant intended for bio-terrorism countermeasures.
I was talking theoretically - "If they would find out about it ..."
BenK - The good part of all these competitor's studies is that it does prove that a reduction in the pathogens directly correlates to a reduction in HAI's. Considering all the external factors that could contribute to an HAI - e.g people entering the sanitized space, it is good to know that it is now proven - rather than it just being a seemingly obvious conjecture.
The possible bad news is that John Hopkins didn't commit to buy any units until after the 2 1/2 study was completed. Hopefully now that they know the concept works, they won't need such a long time to commit to Asepticsure
Thanks Go. That is from 2 years ago - hopefully they haven't made any more progress
A study released on 12/31/2012 by one of the most prestigious hospitals in the US about a competing technology is OLD news? Isn't relevant to an intelligent discussion of Medizone's prospects?
Go - John Hopkins is one of the top 2 or 3 best hospitals in the US and they have ordered Bioquell after extensive testing. Just like Asepticsure was sucessful against a wide range of organisms, it is very possible their solution will also be proven so.
They might very well be, but if hospitals don't care about sterilization and only care about decreasing their HAI's for a quarter of the cost of Asepticsure it is going to be a very hard sell.
2 1/2 year Bioquell John Hopkins study
http://medicalxpress.com/news/2013-01-hydrogen-peroxide-vapor-hospital-disinfection.html
Seems as if there are experts who aren't insisting that technologies meet the standard of sterilization, as long as they work to reduce incidences of HAI's.
Go - Something doesn't sound right/good to me - 25 million shares at .012? Didn't Leader just agree to put in $3 million? It would be nice to hear some update as to the $20 million dollar contract.
NSD - They have always mentioned the 20-30% reduction target. Refer to the conference call in June 2011:
"Consider for a moment, should a major hospital operating company in the United States, such as a Kaiser Permanente, employ AsepticSure in two or three of their hospitals, and be able to verify a reduction in HAIs of 20% or 30%, perhaps more, and then adopted the system for their entire hospital operating system, would it not seem appropriate to advertise the fact that you could verify you had the cleanest hospitals available to patients anywhere in the world?"
NSD - I guess our posts crossed :)
If I remember correctly NSD took issue with the following quote from the 09/12 press release:
"These systems are being placed into immediate commercial service by our Canadian distributor. "
This comment, together with his conversations with CM that 3 months later the units still aren't being used, is how the "deception" claim came about. Deception might be a strong word, but as usual we aren't getting clear answers from management.
Still waiting for hospital testing ...
Benk - It is a bit disingenuous to make him out as a honorable man because he "saved" investors money. Please remember a lot of the long-time shareholders invested based on his mis-leading Groundell announcement. I have significant money invested at over .60 cents/share because of that fiasco.
While he deserves credit for not giving up and his incredible perseverance, in my mind that doesn't give him a free-ride for all of the mistakes he has made over the past several years. Some accountability would be appreciated.
>> But out of a sense of loyalty to the shareholders, who would have lost all of their investment, he refused.
I did and got "I can't comment on that". I guess different people get different answers :(
Can you please enlighten us.
>>Write Bruce yourself, and find out what's really happening.
When is Ed going to take responsibility for these poor decisions? This is no longer about poor communications, or even the “inevitable” delays of bringing a product to market. This is about many major decisions in significant areas of the company that have proven to be bad by their own admittance. Not that he will ever admit it (it has always been someone else’s fault) ,but their own subsequent actions have shown they realize that these have been failed decisions
Funding:
Mammoth – Much ballyhooed, but obviously a mistake considering they are reluctant to use it and that they have been looking (unsuccessfully) for alternate sources
Sales/Distribution:
Original plan - Create partnerships all over the world. Now they are saying they will stick to North America
Manufacturing:
Went with troubled/In flux SMTC. After many delays now they are looking elsewhere.
It is called accountability – something he seems to be sadly lacking.
NSD - Mammoth deal was for 2 years, which is just about up, so either way they need to find a new method of funding.
Benk - I will follow up with Bruce, but it is hard to fathom that they should have such a hard time raising funds. Contrast Medizone to another penny stock that I followed Semper to. They recently raised $1 million from their manufacturing partner at twice the current share price. Obviously it is in the manufacturer's best interest from the company to go forward.
The main difference between the 2 companies. 3 months ago they brought in an experienced CEO from one of the major players in their industry. He has brought credibility and focus to the company.
I can't understand why Medizone refuses to do the same.
BenK- Did I miss something? Who said funding is what is holding up news?
Hospital testing has been delayed 2 years because of lack of funding? Bedbugs, Lab sterilization, food processing have all been delayed because of lack of money? I thought they said they are comfortable with their current funding options ( private placements, Mammoth) and never heard that is what is holding things up. Can you please clarify - are these your conjectures or have you heard that from the company?
>> Funding is IMO the big and only issue. If they could find some cash despite this incredibly difficult risk-averse environment, I think there would be a flood of news.
We will get there - otherwise I will need to change my screen name )
>> Wish to God this news would happen with my other...
I like what this CEO is doing!
Sunovia Energy CEO Releases Shareholder Letter
Today, Sunovia Energy released its SEC quarterly results for the quarter ended June 30, 2012. This quarterly filing represents my first 90 days as CEO of the company, and although I understand that success will ultimately be measured in earnings per share (EPS), I hope that you will recognize the positive steps forward that have been made during the past quarter.
First and foremost, we have finalized a contract with a large, reputable customer to deliver more than $20 million of our EvoLucia™ Aimed Optics™ roadway lights. In order to fulfill an order of this size, we have to be able to mass manufacture our products. When I arrived to Sunovia in April of this year, we could not fulfill a $1 million dollar order under standard industry delivery terms. Our manufacturing capabilities were limited to a few hundred thousand dollars per month, and our quality controls and project management procedures were not adequate to effectively manage a global supply chain.
Over the past quarter, we finalized an important agreement with Leader Electronics Inc. Leader is a global contract manufacturing company with quality and environmental certifications that include ISO9001, TL9000, QS9000, TS16949, TQM (Total Quality Management) and Six Sigma Black Belt certification. Leader is also certified as one of the Energy Star Member Laboratories, and currently provides contract manufacturing services to a number of Fortune 500 electronics companies. Leader will begin manufacturing our EvoLucia™ light fixtures during the second half of this year with a goal of producing 20,000 of our Aimed Optics™ fixtures each month by the end of this year. In addition, Leader invested $1 million into Sunovia whereby Leader acquired shares of common stock at a price of 8 cents ($0.08) per share. Although I will actively pursue additional partnerships for the global production of our fixtures, I expect that Leader's capabilities can certainly propel our annual manufacturing capacities to more than 1 million units within the next 24 months.
In addition to shoring up our sales and manufacturing capabilities, I have authorized and committed capital to the completion of our next generation LED fixtures. While our original EvoLucia™ Aimed Optics™ fixtures set the performance bar in the industry and won awards for efficiency, the original design was not optimized for manufacturability. Our next generation fixtures will perform at even higher levels than the original, and will include a streamlined design that reduces the weight of the units. Further, our latest innovations have resulted in a number of new patent applications that will further protect the value and propriety of our Aimed Optics™ products, which are the highest performing LED roadway fixtures in the industry. And most importantly, the new EvoLucia™ Aimed Optics™ fixtures will cost significantly less than the originals, and will hit the market in the next 90 days.
During the 3rd quarter, the name of the company will be changed from Sunovia to EvoLucia Inc., and the company's ticker symbol will also be changed. This change represents a renewed spirit and a complete focus on becoming a dominant company within the rapidly expanding LED lighting industry. In addition to our name change, the company is launching a rebranding campaign that will include new product collaterals, a new industry-friendly website and a promotional campaign that will introduce the company and its new LED lighting products to the global lighting industry and financial markets.
We will also be launching a community outreach program during the 3rd quarter of 2012. Our first project is working with the Boys and Girls Club of Sarasota County to improve the safety, security and overall environment of the local facility through the replacement of antiquated lighting fixtures with our new high-performance EvoLucia™ LED fixtures. We will continue to search for worthy opportunities where we can give back to the local Sarasota community, which has been so welcoming and helpful to our company and its employees.
In order to build the best team in line with the company's strategic focus on LED lighting, I have recruited a number of new employees with strong lighting backgrounds. Over the past 90 days, we have added more than 200 years of lighting experience, and as we continue to grow, will continue to look for the best qualified people regardless of race, gender or creed in order to create a diverse and professional workforce.
As I stated in my last letter, my primary goal is to create value by positioning our company to become a dominant "pure play" LED lighting company within the $100 billion lighting market. While we have plenty of work to do to accomplish this goal, I believe that our achievements over this past quarter represent several big steps in the right direction.
The future is bright!
Yours sincerely,
Mel Interiano
Chief Executive Officer
10Q is out. Did I understand this correctly - they have a $20 million backlog of orders!
We currently have in excess of $20 million in contracts for our new cobra-head fixtures, and we expect to begin fulfilling these contracts during the third quarter of 2012.
Benk - It hasn't only been Zenex -
There is Crothall using Tru-D SmartUVC.
A hospital in Oklohoma using Steril-Aire UVC Lights
As far as not hearing about competitors - most companies keep their product development under tight wraps until they are ready. Medizone didn't have that option because this is all they have and needed to attract investment dollars. If J&J was developing something I don't think we would know about it until it is market-ready.
Having said all that I added to my position several weeks ago - unfortunately, considering todays sp, several weeks too early.
BenK - Do you consider that every couple of weeks a new competitor pops up the same discussions? While perhaps these are inferior products, doesn't it give you pause that one day a better product will appear?
>> same discussions over and over again
Are you as confident now that "but we'll get there." as you were 2 years ago, or do you now think it's possible someone else will beat us to it?
>>but we'll get there.
That's nice in a theoretical sense, but it's very possible any specific hospital couldn't care less as long as it works now and saves them money - the future be damned. To me it's similar to how the US is trying to get doctors to stop overprescribing antibiotics because the germs are getting immune to them. While that is the official policy, any doctor I've used will gladly give you a z-pack even if you only have a bad cold.
They have been working in a socialist medical environment for their entire careers - perhaps there isn't the time pressure in Canada that exists in the US, where every minute extra costs the hospital money in billing.
>> who have been working in hospitals for their entire careers
Judy - but higher cost in lost revenue due to longer turn-around time than the competition. For now it's all speculation on what is better - the market will decide. Hopefully Aspeticsure will get to market soon and then the competition will begin!
Go - Sounds great but...
If we were operating in a vacuum there is no question as to this approach. But we are not - there are competitors, some known, some unknown, who are working on creating a better mousetrap. There is no way to know how long this window of opportunity will be open for Asepticsure. That is why the 2 year delay in hospital testing is so frustrating. Of course they can’t deliver a machine before it’s market ready, but testing could have been going on concurrently with product development. They made a decision to halt testing – only time will tell if that was a fatal decision. They decided to delay bringing on top quality marketing talent until now - only time will tell if that was a fatal decision.
NSD - just what I was worried about - someone coming from out of the blue with a technology that seemingly leapfrogs Asepticsure.The only part that leaves me with some hope is that perhaps the reason why it worked is because they are a new hospital - without a buildup of bacteria. The study didn't show a drop in HAI's from previous months - just that they didn't have any HAI's. Perhaps something small to hang our hopes on :(
I'm ready for all the proclamations that this is in no way competition to Asepticsure because ....
If not that I have a sizable investment in Medizone it would be fascinating to watch how ego and pursuit of honor can influence someone's actions. Ed has the most to gain, from all of us, by bringing in experienced management to help Medizone succeed. Alas he is unable to do so because that would mean giving up or sharing the glory. It is sad to watch. Even sadder would be if, because of this, Asepticsure fails and then he will have lost both the glory and the money.
Judy, There will almost definitely be a better solution than Asepticsure, maybe tomorrow, maybe 5-10 years from now. That is why the delay of 2 years in getting hospital testing started is so troubling. The company should have been focused on one thing, not spending time/money on sport equipment testing, bedbugs, even TB etc...
I think that is the price we paid for having an inexperienced CEO running the company.
WIV - I am on the fence regarding current management. On the one hand I have great appreciation for what Ed has accomplished for us regarding getting us to this stage. On the other hand I think with different management the last 2 years ( when hospital testing was supposed to have started) would have played out differently.
Can Medizone afford another year? Are there enough discontented shares to force any action?
"In my view, current management has less than a year, if that long, to prove it can do the job or a change will likely be forced by a growing chorus of shareholder discontent."
17years - As far as funding production. I'm not sure it would be that difficult to fund. Machines are selling for $90,000, so a typical retail markup of 100% would mean $45,000 cost to produce. But this isn't typical -medication that is priced at $20/pill only costs the drug company pennies to produce - you are paying for the research - same here. Without knowing anything about Medizone's cost I would guess if these machines are priced at $90,000 it doesn't cost them more than $10,000 to produce - practically completely covered by a down payment.
but I am smart enough to know not to respond to that comment :)
Go - You are sharper than me :) I didn't understand that from the message and asked for clarification.
I was told he is a full-time employee, but will keep his consulting clients as a side venture.
I hope I'm wrong, but there is already a long list of items that it does work against and we are still at .18. My point is - adding TB to the list is most probably not going to add much short-term value to the share price. Obviously in the long-term the more things it works against the better.