ABWN Did some DD on some older filings I hadn't looked at in awhile. Was just trying to get a handle on the evolution of anticipated development costs?
FORM S-1 Registration Statement signed on the 31st day of August, 2017.
In addition, on March 9, 2017, we entered into a non-binding Memorandum of Understanding with ViaLight Communications GmbH (“ViaLight”) pursuant to which the parties agreed to explore the possibility of entering into an agreement whereby we would explore integrating a laser-based communication system on Infinitus. There are no assurances that we will enter into a definitive agreement with ViaLigh
In order to create a mesh network over the continental United States that operates 24 hours a day and 7 days a week, we believe that we will need to have our equipment installed in the short run on at least 600 commercial aircraft, and in the long run on at least 2,500 commercial aircraft, that fly in the continental United States. To expand outside the continental United States, we will need to have our equipment installed on a significantly greater number of aircraft.
In May 2017, we completed our first airborne test of the system using two aircraft and a temporary mobile mast system that emulated a ground station. During this first airborne test, FAA and electromagnetic interference (“EMI”) tests were conducted successfully, demonstrating that use of our system did not interfere with any phase of aircraft operations. We must now complete the software development for Infinitus, and the design and development of the customized hardware needed to enable Infinitus. When that is substantially complete, we will be able to conduct a much larger test, using up to 20 commercial aircraft. We presently anticipate that we will be able to conduct that test in the first half of 2018, assuming adequate progress in the software and hardware development and receipt of additional funding.
We anticipate that we will need additional financing to complete our next airborne test of the system involving 20 commercial aircraft as well as to cover our operational costs while we obtain all relevant certifications, negotiate relevant agreements and otherwise fully develop and commercialize Infinitus. We estimate that to fully complete development of Infinitus and commence commercialization we will require between $75 million to $100 million of additional financing, assuming we can progress on our current timetable.
We anticipate that at least initially we will have only one supplier for the customized antenna we will need for Infinitus, and thus our business would be materially and adversely affected if that supplier did not supply the antenna for any reason.
At the time this S1 was drafted they did not have the cost associated with Mynaric Laser Technology?
The lack of alternative suppliers could lead to higher prices and a failure by any of our single source providers to continue to produce the component, or to otherwise fulfill its obligations, and could have a material adverse effect on our business, results of operations, and financial condition. Also, for certain customized equipment or components, any certification obtained from relevant government agencies will cover only that specific piece of equipment or component and supplier.
Press Release | 08/15/2017
Airborne Wireless Networkand ViaLight Communications Sign Design and Manufacturing Services Agreement
ViaLight to assist in the development of Airborne Wireless Network's hybrid radio frequency laser based communication system
Agreement to accelerate development of Airborne Wireless Networks Infinitus Super HighwayTM
-- Airborne Wireless Network (OTC QB: ABWN) is pleased to announce that on August 11, 2017 it entered into a design and manufacturing services agreement with ViaLight Communications, GmbH, a developer of laser based high-speed communication products.
Amendment No. 2 to FORM S-1 registration statement to be signed February 13, 2018 .
We have applied to list our common stock on the NASDAQ Capital Market under the symbol “ABWN.” However, our listing application is currently pending and there are a number of listing criteria that we do not currently satisfy, including the requirement that the bid price of our common stock be $4.00 per share or greater. Our common stock is currently quoted on the OTCQB under the symbol “ABWN.” On February 13, 2018, the last reported per share price for our common stock was $2.01, as quoted by the OTCQB.
We are currently in the development and testing phase of our plan.
In May 2017, we conducted our first airborne test of the system, using two Boeing 767 aircraft and a temporary mobile mast system to emulate a ground station (“Proof of Concept flight test”). The two Boeing 767 aircraft were provided by Jet Midwest Group, LLC under the terms that company’s agreement with the Company. During the Proof of Concept flight test, FAA and electromagnetic field interference tests were completed successfully. The Proof of Concept flight test also successfully demonstrated, on a micro scale, the ability of aircraft equipped with Infinitus to act as airborne repeaters or routers to send and receive broadband signals from one aircraft to another. The tests also successfully demonstrated aircraft-to-ground communication; ground-to-aircraft communication; and aircraft-to-aircraft-to-ground-and-back communication.
We will need to complete the software development and the design and development of the customized hardware to enable Infinitus and implement our business plan. To do so, we will need to achieve the following milestones:
· Complete a high-bandwidth demonstration utilizing free space optics and radio frequency synchronization.
We intend to complete this demonstration by conducting a two-plane test utilizing two Cessnas (or equivalent planes) installed with Infinitus technology incorporating the free space optics underlying the Company’s patent application filed on July 25, 2017 , which seeks exclusive rights to our method of synchronizing free space optic links between aircraft in flight and radio frequency synchronization . The intent of the Cessna proof of test is to establish a radio frequency link between the two aircraft to share position information and then establish a free space optical (laser) link for acquisition and optical transmission of data, to measure throughput and data packet-loss rates. The test is being designed to prove that “self-synchronizing” and “self-restoring” airborne free space optic links are feasible and practical.
Subject to obtaining needed capital, we expect to achieve this milestone during 2018, and believe it will cost approximately $4.1 million to do so.
Pursuant to the Software Development Agreement, TDT is to develop, deliver, help integrate, support and maintain custom software for use by the Company in connection with the Company’s development of Infinitus. As compensation for these services pursuant to the Development Agreement, the Company has agreed to pay TDT a development fee which shall not exceed $1,000,000.
Obtain an initial FAA approval for installation on aircraft
We need to achieve and obtain an initial FAA-issued Supplemental Type Certificate approving the design and installation of our equipment on aircraft. We plan on initially obtaining such a certificate for installation on 737-800 aircraft, which would allow Infinitus hardware to be permanently installed on those aircraft. We also need to obtain an FAA-issued Parts Manufacturing Approval that would allow the Company to be the manufacturer of record and produce equipment for installation on multiple 737 aircraft. We would thereafter seek additional Supplemental Type Certificates for other aircraft outside the 737-800 series types as they are added to the network. As part of this effort, we intend to conduct a larger airborne test involving up to 20 commercial aircraft, which will confirm billable function of data transfer. Subject to obtaining needed capital, we expect to achieve this milestone in the next 12-18 months, and believe it will cost approximately $60 million to achieve.
Set up capability to roll out Infinitus
If the 20-aircraft test is successful, which will require the utilization of our equipment at multiple ground stations, then we will have also determined the equipment requirements for future ground stations. This will be tentatively coordinated with partners such as Zayo and other telecommunication companies or similar companies. These types of companies own many of the physical locations that can interface with our proprietary antennae and associated harnesses to interface with their site equipment. We will then need to establish initial quality control functions including quality control manuals and procedures in support of our FAA-issued Parts Manufacturing Approval. This will support the necessary control functions to facilitate the installation of our equipment on aircraft and on the ground. Lastly, the Company will need to establish a secure facility where we will conduct final assembly of our equipment. This space will also house a laboratory and will need to be 2,000 square feet or larger, in accordance with FAA guidelines. We cannot yet predict when we will achieve this milestone, but believe it will ultimately cost approximately $350 million to achieve.
To our knowledge, the closest approach to Infinitus is Facebook’s proposed use of drones to provide network coverage. This approach resembles Infinitus, with two major differences. First, we believe that the use of large, unmanned drones (with wingspans the size of a Boeing 737/757 aircraft) flying overhead, solely depending on solar power, may not to be the safest method for providing this service. Second, we have a U.S. patent, which is recognized by many of the world’s nations, and protects Infinitus from competitors seeking to utilize our technology, although this patent expires during 2018. However, we also filed an additional patent application on July 25, 2017 seeking exclusive rights to our method of synchronizing free space optic links between aircraft in flight, which we believe, if obtained, will be instrumental in making Infinitus operate successfully. Currently, this patent application is undergoing prioritized examination at the U.S. Patent and Trademark Office and we are continuing to prosecute this patent application in order to get the patent granted as soon as possible. We do not believe that our competitors own similar patents in those countries that recognize U.S. patents, nor do they have a license to use the technology covered by our patent and patent application.
Form 10-Q This is the first filing in which this cost appears.
For the quarterly period ended February 28, 2018 management projections indicated approximately $582.8 million in capital was required to bring the proposed products/services to market,
