Healthcare Solutions Mgmt. Group Inc. (HSMD)

[jolyn86]

AVTX - ADVANCE TECHS INC DD plus odd ball stuff

BY Cytotekk AVTX - ADVANCE TECHS INC DD

http://www.investorshub.com/boards/read_msg.asp?message_id=13418265

Advance Technologies Inc. Home
http://www.avtx.com/

Sonk speculatiion on royalites, .50 to 1.00 per share.

[this is before the spin-off news]

http://www.investorshub.com/boards/read_msg.asp?message_id=13494515



Advance Technologies Inc.

http://www.avtx.com/optcont.htm

Kollsman home page:

http://www.kollsman.com/

Kollsman contract news release:

http://www.kollsman.com/company/news/pr_10072003.asp

FAA awards 2004:

http://www.faa.gov/apa/pr/pr.cfm?id=1895

Gulfstream news with mention of Kollsman: http://www.gulfstream.com/news/releases/2004/040929.html

A must see; Gulfstream video demo of EVS: http://www.gulfstream.com/product_enhancement/evs/

Kollsman All Weather EVS article: http://www.kollsman.com/company/news/Next%20Gen%20All%20Weather%20Window.pdf

Sec Fillings :http://knobias.10kwizard.com/files.php



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By: originalfred
21 Jul 2005, 11:50 PM EDT
Msg. 5982 of 11441
(This msg. is a reply to 5980 by talkingmuley.)
Jump to msg. #
Use of Hughes patent.

Thank you everyone for the clarification on the use of the Hughes patent. Here is the link to the 10-KSB for the Fiscal Year Ended September 30, 2002.

http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001092306%252D03...

Enhanced Vision Activities

Enhance Vision System, our first project; has entered production. Advance Technologies benefits through a license agreement with Kollsman Inc.

The License Agreement between Advance Technologies and Kollsman Instruments covers the transfer of proprietary intellectual property owned by Advance Technology. The data package consisted of technical, industrial, marketing, and FAA regulatory knowledge to facilitate the development of the IR EVS and subsequent FAA certification. Included as part of, but specifically partition within the Agreement is an option for Kollsman to use a Hughes Aircraft patent that was licensed to Advance Technologies in 1996. Kollsman elected to proceed forward with an IR EVS system based upon the content of the License Agreement, but without incorporating the Hughes Aircraft patent. There has been concerns expressed that the lack of inclusion of the Hughes Patent could in some way effect ATI our future revenue.

ATI provided the Hughes patent to Kollsman on a sub-license agreement approved by Hughes Aircraft. In the sub-license agreement ATI provided the right to use the Hughes Aircraft license on a zero dollar ($0) mark up, passing the Hughes royalties through 1:1 with no increase. As a result, royalties due to ATI under the License Agreement are unaffected by either the use or non-use of the Hughes Patent.

At the time of the decision by Kollsman to proceed forward without using the Hughes Patent in the development, ATI was fully consulted and agreed with the interim approach selected by Kollsman. The need to move forward quickly was deemed to be more important than a desire to produce a more robust performing system at that time. This decision to move forward as quickly as possible was a good business decision that has allowed us to reach the market sooner than our competition.

ATI believes that the long term EVS will need to incorporate advance optical techniques to achieve the performance level dictated by the more difficult and demanding passenger carrying commercial aviation markets (FAA Part -121 & Part -135 operations). ATI has maintained our advance concept developments using both the Hughes Aircraft patent and other proprietary techniques. Under the License Agreement with Kollsman, ATI is obligated to offer these improvements to Kollsman as a first right of refusal. A provision in our agreement that ATI has fully comply with. We believe assisting in the development of a competing system to Kollsman would not be in the best interest of AVTX or our shareholders under current and foreseeable conditions.

ATI and Kollsman had discussed working on an Advanced EVS based upon ATI's proprietary technology. Kollsman has taken an action to look into providing ATI with certain hardware items to support ATI's internal activities on the Advance System development. As of September no progress has been made on this program.

Kollsman has issued the quarterly report required under the License Agreement to ATI stating eleven (11) EVS have been delivered to their customer. The definition of a delivered EVS system, is when Kollsman receives payment for the delivered system the system is considered at that time to have been sold. The time between Kollsman initial delivery to the aircraft supplier and the final sell off was initially taking 10-12 weeks. The time in the pipeline has been decreased to 4-6 weeks, as the integration team becomes more experienced and the rate of delivery increased. The following table was constructed from the data provided by Kollsman.

UNITS DELIVERED & SOLD VERSUS 2002 (QUARTERLY)

INITIAL DELIVERY UNITS SOLD ACCUMATIVE

1st Qt. 2002 2 0 0
2nd Qt 2002 7 5 5
3rd Qt. 2002 14 6 11
4th Qr. 2002 - -


The delivery rates are increasing as Kollsman ramps up production. Kollsman has released no information on their future production plans. Their end user continues to expand the application to additional aircraft through certification activity with the FAA. This will serve to increase the EVS market. No information has been released by either party at this time on the details or the likely effect of this activity on the overall EVS market.

The License Agreement (July 1997) between Kollsman and ATI has a royalty schedule that was specifically tailored to achieve two key elements (1) for rapid recovery of the development investment and (2) maximize long term profits to ATI predicated upon a large EVS market. Under the provisions that implement this strategy the initial production units are royalty free. The royalty per unit increases in four discrete steps to a maximum value per unit.


(Voluntary Disclosure: Position- Long
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