Important Postive Statements in Sids letter to Shareholders
Lack of viable competitors in the volumetric 3D display arena and that a strong patent position has been established by the company to protect its technology.
In the past several months the company had moved aggressively in recruiting new senior management and an experienced technical management team who would be able to move the C-Space technology out of the research laboratory and into a true commercial product.
It is likely that active commercialization efforts can be started when the Engineering Verification Test Bed (EVTB) is finished in approximately 6 months.
3DIcon has identified and is having discussions with potential strategic partners, including a Fortune 50 Aerospace company for command and control and inventory applications; an optical scanning company to provide automated scanners for manufacturing lines; a gaming company to provide 3D elements for gaming tables and a private defense company to provide display systems for the intelligence Community.
The timeline estimated for the Engineering Verification Test Bed which would give us the ability to initiate commercialization efforts was estimated to be approximately 6 months and approximately 12 months for the final TSP.
Fred Hermann of TH Business Advisors who is acting as a Business Development consultant to the company provided greater detail on the potential customers and collaborators that we have been working with but noted the importance of having a Trade Show Prototype or EVTB before meaningful discussions could be initiated. He verified the high interest we have from numerous companies who see a fit between their technologies and the 3DIcon volumetric display technology.
Some shareholders felt the company was taking too long to produce a viable display. We explained the difficulty of producing a completely new, disruptive technology. We are dealing with technical challenges that have not been successfully dealt with before such as the optimal key materials to be suspended in the liquid medium inside the viewing dome. We have heating issues that must be overcome within the dome from the laser beams that are being projected into the viewing area. All of these are engineering challenges that can be overcome.
Most importantly, we have laid out a well-documented critical path to the creation of the Trade Show Prototype.
We have the key people in place, have protected IP and a continuing IP strategy and we have identified our initial key markets. Those markets have 3D data available and include medical imaging, baggage and cargo handling, industrial inspection systems, training and simulation, government and military training. We are developing presentations for each of these markets designed to fit industry and specific company needs. Our plan includes discussions with industry contacts, market expert, trade shows and other professional groups to ensure that the technology is developed in the most commercially compelling way.
4. Why is the process taking so long? The company has been promising revenues, product etc. for some time.
C-Space is disruptive, groundbreaking technology that has not been accomplished previously. We are well ahead of the pack – we don’t believe there are any viable volumetric (commercial) competitors at this time. The company needed people with new and varied skill sets to bring a product from the R&D laboratory to a commercial product. In the past several months, the Board made decisive moves to change the trajectory of the development process by bringing in industry seasoned senior management and experienced and strong technical management.
5. What has happened to the stock’s price? Why is there no price support?
The prices for penny stocks for development stage companies are highly volatile. True growth in the stock will ultimately depend on the company successfully completing its technology and securing licensing agreements with strategic partners. That is the singular focus of the management team.
