UPIN - On April 7, 2016, the Company formed XPAL Technology, Inc., a Colorado corporation (“XTI”) as a wholly-owned subsidiary. On April 20, 2016, XTI entered into an Asset Purchase Agreement (the “Agreement”) with Tennrich International Corp. to acquire certain assets of XPAL Power Inc. (“XPAL”), a California corporation. Subsequently, on August 12, 2016, the parties amended their agreement to provide that XTI would acquire from Tennrich 9,771,429 shares, equal to 80% of the common stock of XPAL. The price was $6,500,000.
XPAL’s Business
XPAL is engaged in the manufacture and sale of technology products produced under license from Energizer Holdings and/or its affiliated group. These products are as follows:
Energizer Power Bank Energizer and Eveready have the highest brand recognition for disposable batteries in the world. XPAL has a five year global license to market Energizer technology and the Energizer tradename for portable power banks. The near global-penetration of smartphones has led to a demand for recharging through portable power banks. There have been instances of explosion and low quality control with many new market entrants. XPAL believes that it can attain significant market share by offering Energizer Power Banks at competitive prices, especially through mass market outlets such as Costco, Target, Walmart, etc.
Energizer LED Lighting. Energizer is the number 1 brand of flashlights in the USA. According to Energy Star, there are over 5.5 billion light sockets in the USA alone that could accommodate LEDS. LEDs offer 85% energy savings, and consumer rebates are offered by nearly all states that bring the initial acquisition cost of LED lighting near to that of incandescent technology. XPAL has a five-year license for the use of the Energizer trademark and the Energizer Bunny for the USA. XPAL also has a technology partnership with Advanced Optoelectronic Technology Inc. to use Nichia’s patented LED technology.
SpareOne Emergency and Safety Products and Services. SpareOne is the world’s only patented (US Patent # 9,106,277) replaceable standard (AA) battery-powered emergency phone. It requires no maintenance or charging, provides simple phone capabilities, and includes dual GPS and LBS certified location and alert monitoring for emergency, disaster, and lost persons. Since its inception, SpareOne has won numerous prestigous design awards including CES’s “Best Wireless Handset,” Red Dots “Best of the Best” design and Henry Ford’s International Design Award (showcased in the Henry Ford Museum). Last year SpareOne became the first ATT certified emergency phone and carrier grade “guardian” tracking service. SpareOne is the perfect insurance or back-up plan for communication. Recently SpareOne launched nationally in all 1700 Target stores (1700) with Energizer as its partner. XPAL has been assigned the SpareOne patent and trademark.
Power Skin. PowerSkin (synonymous to BatteryCase) brand was established in 2012 as a default “battery case” brand for select network operators looking for power solutions outside of Apple iPhones. PowerSkin is trademarked in 3 separate classifications (battery storage, solar, coatings) and is covered by numerous patents, including (US Patent 8,741,403 and 8,564,243) for innovative power technologies. PowerSkin has an established brand name with “online” and power-leasing businesses for events, hospitality and enterprises by offering mobile universal charging, utilizing the patented hybrid power bank design (see below). Currently consumers have two choices for power bank – a battery case or a cabled power bank. PowerSkin’s hybrid battery charger acts as a “backpack” to any form factor, device or case, is cable-free and offers freedom to charge anyone, anytime, anywhere. XPAL has a license to the Powerskin trademarks and patents.
Magconn Wireless Charging and Syncing. Wireless charging appeared in 2010 and though widely accepted has struggled to create a standard in the market. Market research does show that consumers do not like cables and wires. However, to date, the wireless choices (qi and PMA) are bulky, expensive, slow and inefficient. We believe that XPAL is well positioned to support and grow the patented and new Tennrich-owned Magconn wireless charging ecosystem, under license from Tennrich. Magconn not only offers what we understand is the most efficient charging (93%) but the patented data transfer or syncing through its wireless ecosystem. We have also been assigned the right to use the Magconn trademark.
Bone Conduction Technology BCT (Bone Conduction Technology) literally means to transfer sound directly to the auditory nerve. With BCT you do not have to use or damage your ears to listen to sound, music or voices. BCT was invented 75 years ago, but because of cost, quality and size (too big) it was not a viable option until recently. BCT allows a person to listen through vibration from a transducer positioned in front of the ear, so that it does not damage the inner ear nor block its use to hear. BCT headsets are one of the first “safe listening” devices. BCT is a great solution for hearing protection in noisy environments like car racing, airports or warehouse. It utilizes a voice intelligible system to allow listening when using ear plugs, over-the-ear headset or helmet. BCT also offers situational awareness when bike riding, jogging or playing sports. BCT is also more adaptable to underwater use.
According to the Society for the Hearing Impaired there are over 40 million Americans that suffer from some type of hearing loss and approximately 40% of retired military personnel suffer from hearing damage. 50% of these hearing impaired Americans could benefit or enjoy better quality of life with the use of BCT – allowing them to hear again through a headset and the use a smartphone. Management believes that it can effectively exploit XPAL’s license of patented transducers and BCT designs to develop new products in consumer electronics, telecommunications, sporting and medical industries.
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