Quantum Materials Corp. (fka QTMM)

[TedJ]

I don’t think we will see a revolutionary new QD-LED display demonstrated by QMC.

I don’t think that QMC has developed the world’s best TV.

What I am waiting to see is a demo of a next-generation QD-LED display component, QMC’s remote phosphor QD-LED, installed in a modified, off-the-shelf display.

QMC has been working on the development of the advanced remote phosphor QD-LED for several years. They started testing a remote phosphor QD-LED in May of 2017 and it surpassed 10,000 hours of continuous on-time in July 2018 (with no degradation).

In November 2018, QMC reported that they had achieved 91% Rec2020 color gamut performance on chip with their remote phosphor QD LED technology. I take this to mean that the QD-LEDs were tested on the bench and not installed in a display.

https://www.globenewswire.com/news-release/2018/11/07/1646844/0/en/Quantum-Materials-Corp-Achieves-Industry-Leading-91-Rec2020-Color-Gamut-Performance-with-Remote-Phosphor-On-chip-Quantum-Dot-Technology.html

Nov. 07, 2018 (GLOBE NEWSWIRE) -- Leading American cadmium-free quantum dot and nanomaterials manufacturer Quantum Materials Corp, (OTCQB: QTMM) announced today that it has produced and extensively tested a 100% cadmium-free remote phosphor (or "on-chip") quantum dot LED technology that achieves an industry leading 91% Rec2020 color gamut coverage. At this time, QMC is working with a number of LED component companies, display manufacturers and chemical companies to bring this next-generation technology to market as a superior and lower cost solution to the current industry practice of incorporating quantum dot infused films into LCD displays to increase color gamut and improve viewer experience.

So in November, QMC had developed and tested the enhanced LEDs and proved that the LEDs were capable of producing a 91% Rec 2020 spectrum output.

The next step, as discussed in the Jan Update Report, was to incorporate the enhanced LEDs into an actual working 65” display in the lab and demonstrate that the modified LED display would also produce a Rec 2020 spectrum output over 90%.

http://www.qmcdots.com/ShareholderUpdate2019.pdf

We are currently in the process of optimizing this technology at the device level in an actual working 65” display in our San Marcos, TX labs and anticipate announcing that we will have our remote QD-Phosphor display (with Rec2020 coverage over 90%) ready to demonstrate to OEM groups sometime in February, many of which have already expressed a strong interest in evaluating this technology when it is available for viewing.

The simplest way to modify an existing LED display would be to start with a mid/low-range edge-lit LED display as shown in the Jan Update photos.

The edge lit display has fewer LEDs and they are more accessible around the outer edge of the light guide plate (LGP) rather than distributed within an array in the BLU.

The hope in November was to have the modified display above 90% before CES and then, sometime in February, but apparently the QD-LEDs need re-optimization to account for changes in the color spectrum as the LED light output passes through the display internals and/or changes are needed to the display’s internals to minimize the degradation of the 91% color spectrum generated by the QD-LEDs.

So the basic plug and play concept (stick 91% QD-LEDs in an average LED display with maybe a 50% Rec2020 spectrum and then get more than 90% color out the front of the screen) is mechanically straight forward, but not a no brainer when making everything work together. Thus, the delay beyond February for the “public” demonstration of the modified display.

We believe this design represents the lowest cost solution for enhancing LED displays with QD’s and it will enable LED manufactures to supply QD enhanced back light LEDs directly to display manufacturers for rapid, plug and play adoption.

It may be beyond QMC’s in-house technical capabilities to make the necessary changes to the off-the-shelf display’s internals to allow the 91% color from the QD-LEDs to pass through and exit the screen at over 90%. So rather than making a big splash demonstrating a “no-brainer” plug and play solution to OEMs and possibly the public, QMC may have had to re-group and continue to work on the modified display with an OEM or two in the lab. Once others are involved, its not just QMC’s show and taking positive results public may not happen immediately or soon enough for QMC shareholders.

Best case is that QMC figures out how to make the plug-and-play work on their own and we soon see a demo or hear the results of a demo to OEMs.

Next case is they make plug-and-play work with support from OEM(s) and NDAs keep it under the radar for more weeks/months.

Worst case is that the plug-and-play solution with QMC enhanced LEDs just can’t be made to work in an off-the-shelf display. However, OEMs may be able re-engineer existing designs or new designs to work with the enhanced LEDs in the backlight, but this will be much later and even into next year.