Yup. Here's the bottom line...
"Product sales were $381,590 and $477,926 for the years ended December 31, 2017 and 2016, respectively, a decrease of $96,336 or 20%. The decrease in product sales resulted from a 10% decrease in ConsERVTM sales in 2017 partially offset by new sales of NanoClearTM evaporators and AqualyteTM membrane.
We are focusing on creating sustainable revenues to a more diversified set of customers with the expectation that this will occur in 2018.
Revenues from royalty and license fees were $1,344 and $1,725,514 for the years ended December 31, 2017 and 2016, respectively a decrease of $1,724,170 or 100%, primarily due to the recognition of the deferred revenue as licensing income from the termination of a licensing agreement with Multistack LLC in 2016. The Company recognized license fees for the new license agreement with Menred as of December 2017."
Obviously, Dais has made a strategic move by terminating their license agreement with Multistack (a U.S. company), and replaced them with Menred (a Chinese company).
In my opinion, this was a no-brainer. China's economic growth (which is approximately 7%) has outpaced the U.S. for years. Their middle class is expected to explode in the coming years - which would require more products (sales!) from Dais.
But even with their new license agreement with Menred, Dais will continue to sell their products here in the U.S.
"We project 2018 revenues to exceed $1.1M with this cooperation as it ramps up, and healthy increases in following years as more product, with projected innovations, is introduced and sold into receptive markets in China and North America. This underscores the international appeal for the Aqualyte(TM) nanomaterial and the field proven valued added products manufactured containing our disruptive nanomaterials."
