CSPACE COMMERCIALIZATION STRATEGY (March 5, 2013)
As I have mentioned in previous letters, our commercialization strategy for CSpace® is based on a technology development and licensing business model. Revenues from that model are expected to come from customer funded development and license fees / royalties. The reason that this business model was chosen is that, initially, CSpace will be targeting high value / low volume applications in the government and industrial sectors. These include: air traffic control, medical imaging, geological visualization for the oil & gas industry, weather visualization, battle space visualization, and cargo / baggage / people scan displays for homeland security. In these applications, 3D displays based on our CSpace® technology will be 1) very application specific and 2) part of a much larger system. By application specific we mean that each application is anticipated to have different requirements and therefore each 3D display will likely have different specifications. These large and complex systems are typically developed and manufactured by government prime contractors like: Raytheon, Boeing, Lockheed Martin, and Northrop Grumman. We have spoken with some of these companies about the potential applications for CSpace in areas where they have existing application expertise, products or customers and have demonstrations scheduled, but do not have any further commitments beyond that at this time. While these preliminary discussions are promising, our near term business development plan is to create awareness of and interest in CSpace® over the next several months and then re-engage with interested parties when Lab Proto 3 is nearing completion later this year. At that time, we will be able to match the expanded capabilities of CSpace (as demonstrated by Lab Proto 3) with application requirements to determine the best-fit applications and customers. Since January, I have personally taken charge of all CSpace® business development activities.
The primary goal for Lab Proto 3 is to develop the capability to build larger image chambers of different sizes. We call this capability our scalable image chamber “system”. That system will consist of both materials and a fabrication process to actually create image chambers. The secondary goals for Lab Proto 3 are to create an even larger and higher resolution laboratory prototype that makes use of this new scalable image chamber system and our new Z-axis scanning system. Lab Proto 3 should enable us to more credibly engage with potential customers and provide the necessary data in support of proposals we intend to present to prospective customers in order to explore opportunities to
develop application specific customer funded prototypes. We plan to use the first of these application specific prototypes to demonstrate CSpace to other prospective customers.
