Further, to the point of technology advancements and our strategy to continue to nourish the Company’s product development endeavors, the Company invested in a U.S. company, AC Kinetic Technologies, in 2013 to confidentially explore and develop certain inventive concepts the Company has conceived that are very complex and that would yield intellectual property which will further distance the companies’ products from off the shelf products commonly marketed at retail. The Company plans to exploit the trade secret technologies within its own products and also make the technologies available for licensing to companies that have distributions not currently served by other Capstone related companies. The first of these products will be introduced to the market in second fiscal quarter of 2014. The Company also continues to seek out and selectively acquire or invest in businesses with perceived superior technical product development capabilities or that could benefit from our market position and strategic direction. All forward planning product development roadmaps are also assessing possible benefits to be realized from US based production.
As previously announced, the Company also seeks and reviews potential acquisitions of new products and technologies that are complementary to our product lines, or the acquisition of companies with such products and technologies. We have not entered into any agreements or commitments with respect to such efforts, but the effort is ongoing and part of our growth strategy and strategy to enhance shareholder value.
We have extensive experience in introducing new products to retail market channels and believe that provides us a competitive edge. In our early development, we sought to find niche product opportunities that may have been overlooked or underexploited by competitors, in order to win a profitable niche of the market share with minimal cost of entry. In 2014, the Company plans its largest launch of new products that is expected to expand the Company’s distribution beyond its current product placements.
