Medizone Intl. (fka MZEIQ)

[Eli's Gone]

No details--but from the 10K:

http://sec.gov/Archives/edgar/data/753772/000118518512000298/medizone10k123111.htm

Recent Developments

During January 2012, technology transfer of the production design was completed from ADA Innovations (“ADA”), our production development partner, to SMTC. An initial order was placed for 5 production validation units to be built. The production validation units are intended to be used for regulatory compliance and licensing validation, additional testing and early delivery positions.

In February 2012, SMTC reported that certain supply-side and tooling delays have set the anticipated delivery date for the initial units back by a number of weeks, although the first units are still anticipated for delivery during the first calendar quarter of 2012.

We have adopted a “soft launch” philosophy. The objective of the soft launch is to deliver 15 to 20 AsepticSure™ systems to end-users during the second and third calendar quarters of 2012. Robustness, ease of use and overall system performance will be evaluated during the soft launch. The purpose of using a soft launch is to insure that when production is ramped up, which is anticipated toward the end of the third quarter and the beginning of the fourth quarter of 2012, we can be confident that increased production will hold minimal risk relative to product performance and reliability.

It is currently anticipated that the soft launch should provide enough information by the end of the third quarter that we will be comfortable in increasing production significantly should there be sufficient demand for our product. At this time, based on the number of inquiries we are receiving, and the fact that the HAI problem continues to grow worse globally based on frequent media reports, we expect to see significant product demand once we are prepared for a product launch. Assuming our soft launch is successful and we are able to ramp up production as anticipated, we currently anticipate we will deliver or have ordered a minimum of 30 machines by the end of the third quarter. While only a rough estimate, that number is based on the fact that we currently have standing orders for six machines and 20 additional units are anticipated for delivery to a single customer during calendar 2012. In recent developments based on potential customer surveys for both the veterinary and hospital sectors, the service model appears to be a preferred choice.

We are currently developing relationships with hospital and long-term care cleaning providers at this time and we expect to see significant demand from service companies actively involved in addressing hospital HAI issues as end users of AsepticSure™. One such company that we anticipate supplying product to as part of the soft launch program is located in the San Francisco Bay area of California. We will also be involving our Canadian distributor, Canmedical in the soft launch. The San Francisco-based service provider’s client list includes highly acclaimed research hospitals and laboratories in the region. Canmedical has approximately 50 hospitals on its customer list in Ontario, Canada, as well as more than 3,200 veterinary customers across the nation.

While we anticipate that in the future it is likely we may partner with a larger corporate entity as a partner to expand sales growth utilizing their distribution system, our current sales model is to establish a limited number of distributors during the soft launch phase. Following the soft launch, we intend to significantly increase our distribution system along with ramped up sales.