I like this part in reading the filing...
The Company has now completed designed of its own non-contact thermometer, which will be called the Kidz-Med Non-Contact 5-in-1. The aggregate cost for design and prototype development of the product was $125,000. Prototypes were developed and a Chinese factory identified for manufacturing all of the components; a contract has been signed with this Chinese factory. Molds and tooling have been ordered and paid for. The Company will purchase all the components from this factory, but final assembly and packaging are done domestically, at the Company’s Ohio facility. Full scale final assembly and production have begun. We anticipate that the unit cost will be $12.50, although it could possibly be lower as volume increases. Funding for the purchase will come from purchase order financing or additional sales of our securities. We have filed trademark applications for the names “Never Touch” (the name the Company previously intended to use for the product), “5-in-1”, “Vera Temp” (the brand name we intend to use for the professional market) and “Dura Sleeve” (the brand name for the silicon glove that fits around the thermometer to protect it from damage due to falls) with the US Patent and Trademark Office, which are currently pending. The Company also plans to file an application for a design patent with the USPTO. The first units off the tooling have been submitted for testing to ensure they meet ASTM standards (American Society of Testing and Materials); the Company received a passing grade in May 2010. Concurrently, a required premarket notification, known as a 510(k), was filed with the FDA. A predicate device manufactured by this Chinese company already has an FDA approval, so no further clinical trials are required. The Company has engaged an FDA consultant to help guide it through the 510(k) filing process. Because the Kidz-Med Non-Contact 5-in-1 unit does not incorporate any aiming lights like the Thermofocus (the patents for which are on its aiming lights), it will not infringe on the Thermofocus patent. The Company is no longer bound by any non-compete agreement with Tecnimed, since the Settlement Agreement completely superseded the Distribution Agreement. The Company expects to ship the Kidz-Med Non-Contact 5-in-1 to customers in August 2010. Additional funds will be needed to complete development registration testing, packaging and marketing of the thermometer.
This sure doesn't read like a typical dilution factory Pinky, where the only business model is the sale of stock. Everything still looks to be on schedule for the second half of this year. If you've been following ASFX on their Facebook page, they've been slowly releasing pics of this entire progress for the thermometer...the Chinese factory, the printing of the packaging, the new protective sleeve. This is a REAL product, not some proposed BS, with $125,000 already invested into it, that is now less then two months away from being introduced into the marketplace. If sales of this thermometer are decent, they have a large profit margin on the price, and this stock price could easily recover.
IMO, 6 months from now, people may be kicking themselves for not buying when the price was this cheap. They are very cash strapped right now, but if they can satisfy their debt holders for the short term and get these new products, including the Mebby stuff, off the ground and generating sales, they might be able to turn the corner and turn this into an actual, profitable business. It appears they are hinging the future of this company on this new thermometer, which can be very risky...but if they hit a home run with it...look out...they will have the cash to market the other products, grow and become a solid company.
This company is one of the rare Pinks that I don't trade, but I'm holding for long term growth. I just don't see a prior history of scams and failed OTC listings with this management team. Usually the scammers just move from board room to board room, plying their typical pump and dump BS until the company is totally drained, then they move on. Here, I see real products, and a belief in those products by management. I like buying those dreams.
