Since 1995, we have been engaged in the development of a low-cost automatic meter reading, or AMR, solution. We have developed a low-cost AMR solution that includes a proprietary system employing specialized hardware and software that will allow for residential and commercial applications. Our proprietary system is called H-NET(TM), which is a trademark of ConectiSys. Our H-NET(TM) system is currently comprised of two principal components: our H- NET(TM) 5.0 product, which itself is comprised of circuitry and a radio transmitter, and our H-NET(TM) BaseStation. Our H-NET(TM) 5.0 product is a component that is designed to be part of a digital energy meter to read and wirelessly transmit meter data to our H-NET(TM) BaseStation. Our H-NET(TM) BaseStation is designed to receive and relay the meter data over standard land lines and cellular connections to a central location where the data is compiled and utilized.
We are continuing the development of our H-NET(TM) system. Our recent development efforts have focused on redesigning our H-NET(TM) circuitry from a three-board circuit to a one-board circuit. This redesign was completed in November 2005 and testing of our new H-NET(TM) circuitry has begun. We redesigned our H-NET(TM) circuitry to respond to redesigns of meter products by meter manufacturers. These redesigns by meter manufacturers were directed at reducing costs and resulted in reduced available space for integration of circuitry from third-party technology providers such as ConectiSys.
In August 2004, we submitted to the FCC our H-NET(TM) 5.0 product for approval for commercialization and sale and received FCC certification for this product in December 2004. In December 2004, we submitted to the FCC our H- NET(TM) BaseStation for approval for commercialization and sale and received FCC certification for this product in March 2005. Concurrently with the development of our H-NET(TM) BaseStation, which is a single-channel design, we have been developing an eight-channel H- NET(TM) BaseStation. Our eight-channel H-NET(TM) BaseStation is designed to communicate with up to 7,500 H-NET(TM) 5.0 product installations per network due to its multiple channel design and to deliver real-time energy consumption data at low-cost. In July 2005, we submitted to the FCC our eight-channel H-NET(TM) BaseStation product for approval for commercialization and sale and received FCC certification for this product in January 2006.
We have not yet sold any H-NET(TM) systems. However, we are actively pursuing sales of our H-NET(TM) systems with meter manufacturers and other companies in the energy industry. We have a history of only inconsequential revenues and have incurred significant losses since the beginning of the development of our H-NET(TM) system. We have significant accumulated and working capital deficits. As a result of our financial condition, our independent auditors have issued a report questioning our ability to continue as a going concern.
We have recently completed and successfully demonstrated a significant update of our H-NET(TM) system's hardware and software technologies in cooperation with one of the major electric meter manufacturers. We believe that this update will provide us with a product that has incorporated more advanced wireless technologies with a more market- competitive and cost-effective design and greater reliability. We are also pursuing different applications of our H- NET(TM) technologies that may be synergistic with our current marketing plan in markets in which we intend to compete.
