Fuse Science Inc (DROP)

[infoseeker11]

Actually, I am here because of the "obvious" as it relates to the potential Business success of this company.

This post is lengthy.


So, what is the "Obvious"?

Let's get the easy ones out of the way.
1. It's a start up company with a bold business plan.
2. It's in it's first year.
3. It's debt currently outweighs it's revenue/profit.
4. It's going to need more money to build out the entire plan.

Sounds eerily similar to almost every start-up? Right? So where is the difference, what makes this so "special"? Why would anyone invest here? What makes this an "obvious" choice when comparing other start-ups to this one? Let's dig a little deeper into the "Obvious".

Why is Fuse Science going to be Different

Fuse is a company made from leading scientific minds and consumer product industry experts with a common goal to redefine the standard of Product Performance through science and expand category consumption. We leverage our global leading science to completely change the rules of the game in key multi-billion dollar categories. We establish a new standard of performance in each category we enter with products that deliver against unmet consumer needs and exceed expectations…

Fuse Science has discovered through a combination of pending patents and trade secrets that we can now encapsulate nutrients, actives and other molecules at a far greater concentration than any time in history. What used to require consuming an 8 oz energy drink can be done with safer formulations and faster. This is superior nutrition… This is Fuse.

Simply put, they have developed a new and differentiated way to deliver a product to the consumer that will cross over multiple product platforms.

Is this going to be a "one hit" wonder or Fad?

Fuse Science continues to develop new technology to take product capabilities to higher levels. A combination of patent pending technology and trade secrets has resulted in achievement of superior transdermal and buccal delivery of nutraceuticals and pharmaceuticals. This unique delivery system has allowed for increased absorption of encapsulated nutrients across the dermal and oral mucosa providing for enhanced transport across the anion-exchange membrane, and maximal delivery of nutrients and pharmaceutical actives.

Fuse Science breakthroughs can deliver Energy, Nutrition, Medication, Skin Care and an endless number of other products with faster absorption, quicker results and better efficacy.

The Business Plan encompasses "multiple" heath and wellness areas.

So what are we looking at in terms of potential product roll-outs?

Commercialization Phase

In the first half of 2012 we intend to launch our sublingual drop technology beginning with HydroFuse™ and PowerFuse™ Drops shortly followed by our NutriFuse™ Drops. HydroFuse™ will provide sublingual electrolyte delivery for athletes which we believe will facilitate less cramping and stronger performance throughout activity due to reduced depletion of electrolyte in the system. PowerFuse™ will provide all natural sublingual energy for athletes which we believe to be faster acting and maintain longer results with half the caffeine and no harmful chemicals such a commonly used taurine. NutriFuse™ is anticipated to provide improved nutrition absorption and antioxidants for athletes prior to and post activity.

Product Pipeline

In support of our planned licensing efforts, there are a series of potential product formulations in various categories that are being contemplated or are in development through defined project platforms. It is anticipated that these formulations will be licensed to industry leaders in the respective category in the event we are successful in the development phase. The categories include but are not limited to:

Analgesics
Allergy Medications
OTC Cough & Cold
Pharmaceutical grade male enhancement products (Viagra & Cialis)
Sleep Aids
Appetite suppressants
Broad offering of vitamins and complex nutraceuticals
Hypoglycemic solution (Glucagon) followed by
Hyperglycemic solution (Insulin)

I would say this is "Real" differentiation and a solid plan.

So, what is in the near term and what is Fuse currently working on?

1.

In the first half of 2012 we intend to launch our sublingual drop technology beginning with HydroFuse™ and PowerFuse™ Drops shortly followed by our NutriFuse™ Drops.

2. 12/20/2011 -

the parent company of Fuse Science, Inc. (www.fusescience.com), announced today the formal launch of its Hypoglycemic, Hyperglycemic, and Analgesic project platforms for the advancement of its OTC and pharmaceutical licensing efforts.

Some of the proprietary science platforms that Fuse Science deals with are oral fuse delivery technologies (OFD's). These OFD's are placed under the tongue or in the inner cheek of the patient where they are absorbed and release the applicable active or nutrient into the blood stream. OFD's do not require water and may be more convenient to take than liquids or injections. OFD's are especially designed to be very useful with pediatric and geriatric patients or anyone in need of faster absorption of a given active into the blood stream that bypasses the GI track, providing an alternative to the more traditional invasive drug delivery systems.

"Today we announce the further advancement of the true core of our Powered by Fuse™ technology," said Brian Tuffin, Fuse Science Chief Executive Officer. "It is with high confidence that we advance our OFD Analgesic, Hypoglycemic and Hyperglycemic project platforms with the objective of completing our pediatric and adult formulations to provide an effective sublingual and/or Buccal delivery alternative for the respective drugs."

The business opportunities from these project platforms are as follows:

The side effects of aspirin on the stomach include bleeding of the abdomen and deterioration of the stomach lining. By bypassing the GI track with our drop technology we intend to improve performance and usage in the $2.5 billion adult analgesic category.
The largest disease state globally is diabetes with an estimated 285 million people, corresponding to 6.4% of the world's adult population living with diabetes in 2010. The number is expected to grow to 438 million by 2030, or 7.8% of the adult population. . One major issue associated with the treatment of diabetes is lack of compliance. The ease of use associated with the OFD will help address the major compliance issues in this $25 billion dollar treatment category worldwide.

"We are extremely passionate about our work in this area," said Ed Maliski, Ph.D. & Lead scientist. "Our work is born out of diabetes sufferers on staff who are committed to advancing these platforms with sense of urgency. We have produced significant results with our OFD work and feel very confident at this stage with our ability to advance these project platforms."

"We continue to be very deliberate and focused with every step we take as a company and our efforts in the OTC and Pharmaceutical space represents the foundation to our long term focus," added Tuffin.

Ok, so will this actually happen? Below are a couple of answers to questions with answers that I have posed to IR.

1. The filings state clearly that Fuse plans on launching two of the Drop products in the first half of 2012, is there any cause for concern?

A. NO

2.Is there any chance we can get an update on the 12/20/2011 PR release?

A. I know the testing and subsequent results will be available within a short period of time and when they are, we will provide an update publicly.


The Management Team

http://fusescience.com/management/management-team

The Board of Directors

http://fusescience.com/management/board-of-directors

Fuse Science Athlete Endorsements

https://www.poweredbyfuse.com/athletes/

Manufacturing - Cure Pharmaceuticals

Fuse uses a third party contract manufacturer for its products. M anufacturing is conducted in a U.S Food and Drug Administration (“FDA”) inspected facility in California which meets cGMP and GLP standards. The manufacturing facility operates with pharmaceutical grade equipment and processes as a standard operating practice, which will allow it to manufacture pharmaceutical grade applications of our technology. Trade Secrets are maintained within this facility and current capacity will meet the needs of the business in the foreseeable future with adequate space for expansion.

So who is the President of Cure Pharmaceuticals and how is he connected to Fuse Science? Ed Maliski, Ph.D. President & Lead scientist.

http://ih.advfn.com/p.php?pid=nmona&article=50490431

So who else is involved in this business? Mr. Maurice Durschlag

Who is he and how is he involved? The Man behind the Science of Fuse...

The Company entered into a consulting agreement with Mr. Durschlag under which he should receive $100,000 over the next year. In addition, in accordance with the terms of his patent assignment and technology transfer agreement, Mr. Durschlag is entitled to royalties on Fuse Science sales as follows:

$0 - $100,000 0.00 %
$100,001 - $10,000,000 5.00 %
$10,000,001 - $50,000,000 2.50 %

Maurice Durschlag was also the CEO of HealthSport which "coincidently" was located at:

1620 Beacon Place
Oxnard, CA 93033

The current location of CURE Pharmaceutical.

So, how is Fuse Science going to get there product to market?
Fuse Science Opens New Headquarters and Partners with North American Supply Chain Expert Smart Warehousing to Support Growth
http://ih.advfn.com/p.php?pid=nmona&article=50851077
Fuse Science Announces Licensing and Distribution Agreements with Mission Product Holdings, Inc.
http://ih.advfn.com/p.php?pid=nmona&article=51369655
Fuse Science Partners With GNC To Open National Distribution Of EnerJel™
http://ih.advfn.com/p.php?pid=nmona&article=52126091

Is there more in the works? A response from a question to Fuse IR.


Can you all provide some kind of product related update? There have been plenty of Organizational/Capitalization updates which I appreciate, however, there has been very little on the product/licensing front with EnerJel/Drops which ultimately is why any investor would consider purchasing shares of DROP.

A: We are working on several updates, including sponsorship and product/licensing, and will get them out as soon as they have been signed off and approved by all parties.

So, what is the "BIG DEAL" with Licensing the technology anyway?

Simply put, for every package made with the "licensed Technology" Fuse Science gets paid. Licensing is one of the best revenue sources available. It is pure profit, with ZERO overhead.

So who else believes in the Fuse Science story?

Fuse Science Announces Partnership With Excel Sports Management
http://ih.advfn.com/p.php?pid=nmona&article=51818606
Fuse Science Partners with World's Leading Sports Trainer
http://ih.advfn.com/p.php?pid=nmona&article=50599248

So, let me go back to what is "Obvious" at least to me.

This Start-up company has a differentiated Business Plan and in it's first year has acquired Top Talent that has experience in the arenas of their Business Plan.

They have rolled out one product and are on the verge of rolling out Two more, all the while testing the platforms for potential upcoming OTC products.

They have tested and refined their first product which will roll out Nationally in June, the have additionally Licensed the Technology of this product to another National Retail company.

They have secured financing for these roll-outs (Many Start-ups never get this far)

Their "Prior Start-up" external valuation for their 5 year growth plan of JUST EnerJel, the soon to be rolled out Drops Hydro, Power and Nutrifuse and Paris Skin Science (later phase of the Business plan) is very favorable and this does not even calculate in the OTC product platforms, Licensing and potential Pharma applications. The 5 year growth plan of 1.8B in revenue is a conservative evaluation.

http://fusescience.com/wp-content/uploads/2011/04/FUSE-IP-Valuation-Report.pdf

So, do I care about the value of my current investment? Absolutely, who wouldn't but it is "Obvious" to me where it is going, so I DO NOT worry about the daily price today. My investment portion is sizable enough for me and I continue to increase it when the price opportunity presents itself.

So, you asked "why is this happening with all the positives?" It's a start-up company, you either believe or not. You hold long, sell short, accumulate over time, trade in pricing channels, do a combination of some of the above listed. The worst thing you can do is "worry". It helps no one and doesn't change your account balance.

So, I ask you... What is your plan? It is "obvious" to me that Fuse Science has a Strong Business Plan that is Future based. Are you investing for the Future or trying to trade today.

Sorry, for the length.... But there are "Obvious" reasons as to why I am here and invested in this stock. I am sure others can add more to this "obvious" post...